Technical Paper 3:
Preventing Alcohol-related harm in Australia: a window of opportunity
4.7 - Regulating promotion
Table of contents
Alcohol marketing and promotion is a global activity, with the largest corporations promoting their products across the world.[13] Marketing strategies include an integrated mix of advertising on television, radio, print media, point of sale promotions, product design (including the packaging and naming of alcohol beverages) and the internet. Sponsorship of sports and cultural events is also a common marketing strategy used by alcohol companies, particularly in Australia. The key questions from a public perspective are:
- what is the impact of marketing and promotion on overall consumption and particularly the misuse of alcohol in the community?
- what are the most effective measures for preventing the adverse impacts of alcohol marketing and promotion?
Table 8: Alcohol advertising in Australia by sector, advertiser and beverage category, 2007
| Sector | Percentage share | Rank | Advertiser | $ millions | Annual change | Beverage category | Percentage share | ||
|---|---|---|---|---|---|---|---|---|---|
| Metro TV | 33% | 1 | Diageo | 19.1 | 29% | Beer | 47% | ||
| Regional TV | 5% | 2 | Carlton & United Beverages | 14.4 | -24% | Spirits | 26% | ||
| Metro press | 5% | 3 | Tooheys Brewery | 14.0 | 10% | Wine | 21% | ||
| Regional press | 1% | 4 | Boag J & Son | 9.9 | 13% | Premix / cider | 6% | ||
| Magazines | 14% | 5 | Pernod Ricard Pacific | 6.9 | 60% | ||||
| Radio | 5% | 6 | Beringer Blass Wine Estates | 5.3 | 93% | ||||
| Cinema | 5% | 7 | Southcorp Wines | 4.8 | 191% | ||||
| Outdoor | 32% | 8 | Suntory | 4.8 | 421% | ||||
| Direct mail | 1% | 9 | Carlton Special Beverages | 4.7 | 238% | ||||
| 10 | Heineken | 3.9 | 36% | ||||||
| Others not in top 10 | 39.9 | -5% | |||||||
Source: Nielsen Media Research AdEx 2008
Top of pageThe impact of advertising on individuals can be seen as having both immediate effects, such as influencing decision making with regard to brand preference, as well as longer term effects such as reinforcing pro-drinking messages.[13] In this way, it is both the content and frequency of exposure to advertising that can have an impact on individuals’ attitudes and behaviours. The impact of alcohol advertising on young people is an area where there has been considerable research, but of somewhat poor quality, yielding conflicting results that range from positive associations between young people who have been exposed to and/or enjoy alcohol advertising and an increased risk of harmful consumption of alcohol, to negative associations or inconclusive results.[7] Numerous studies have found a link between alcohol advertising and alcohol-related knowledge, beliefs and intentions of young people.[84]Unlike tobacco advertising, which was banned in Australia in 1995, there are no alcohol advertising bans in Australia, although some restrictions, including advertising content controls, do apply (see further below). In Australia, alcohol advertising is subject to a number of different laws and codes of practice.
The Australian Association of National Advertisers Code of Ethics covers general advertising issues. Other applicable laws and codes include:
- The Trade Practices Act
- State and territory fair trading legislation
- The Commercial Television Industry Code of Practice
- The Commercial Radio Code of Practice
- The Outdoor Advertising Code of Ethics.
The ABAC Scheme is funded and administered entirely by the alcohol industry. Commonwealth and state and territory governments are involved through one government representative on the ABAC Management Committee.
Despite the ABAC Scheme’s rules, which discourage advertising that has ‘strong or evident appeal to children or adolescents’, research shows that a substantial amount of alcohol advertising is communicated to young people. For example, several advertisements for alcoholic beverages screened on television in metropolitan Melbourne were found to be more likely to reach 13- to 17-year-olds than adults (see Table 9).
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Table 9: Advertising on metro Melbourne television, year to March 2005
| Product | Total annual spend | Frequency of ads | Relative exposure (of 13–17 -years-olds Vs 18–29 -year-olds) |
|---|---|---|---|
| Heineken Lager | $ 94,000 | 110 | 1.12 |
| Cougar Bourbon | $ 45,000 | 103 | 1.04 |
| Archers Spri Schnapps | $ 57,000 | 110 | 1.04 |
| Bundaberg Rum Dry & Lime Mix | $ 36,000 | 88 | 1.06 |
| Orlando Jacobs Creek Sparkling Rose | $ 89,000 | 34 | 1.11 |
Source: King, Taylor and Carroll (2005)[86]
As a self-regulatory scheme, ABAC’s effectiveness largely depends on the independence of its complaints body with the powers to sanction.[43] Recent research has revealed that less than three in 10 (28%) people surveyed reported an awareness of restrictions or regulations covering the advertising of alcohol, in terms of what can be said or shown. It is estimated that only 3% of the total adult population are aware of the existing ABAC scheme and know what it relates to.[87] Among the 30% of people who reported being concerned about any alcohol advertising, only 2% had made a formal complaint. Some of the reasons why those who were concerned did not make a complaint included the belief that it would not achieve anything (30%), not having time (25%) and not knowing who/how/where to complain (15%). ABAC currently has no powers to sanction advertisers who breach the code rules; however, a Senate Committee inquiry currently under way is considering proposed federal legislation that would introduce sanctions on advertisers who breach the code, which would be determined by an independent adjudicating panel.[88]Top of page
In 2003, the Ministerial Council on Drug Strategy considered a report on the effectiveness of the ABAC Scheme that identified the following issues of concern:
- The current system does not address public health concerns about alcohol advertising and use. In particular, most complaints about alcohol advertising are dealt with under the general advertising complaints resolution system rather than the alcohol-specific system.
- The high dismissal rate for complaints about alcohol advertisements heard by the ASB does not engender community confidence in the complaint system and may discourage people from making complaints about alcohol advertisements.
- The general public is largely unaware of the complaint resolution system and, in particular, how to make complaints.
- The system lacks transparency. In particular, there is insufficient reporting of the outcomes of complaints.
- The current system does not apply to all forms of advertising; for example, packaging, electronic advertising, sponsorships, point of sale advertising and promotions.
- The effectiveness of the current system is compromised by the amount of time taken to resolve complaints (MCDS 2003, unpublished).
- to effectively regulate the marketing of alcoholic beverages, including effective regulation or banning of advertising and of sponsorship of cultural and sports events, in particular those that have an impact on younger people
- to designate statutory agencies to be responsible for monitoring and enforcement of marketing regulations
- to work together to explore establishing a mechanism to regulate the marketing of alcoholic beverages, including effective regulation or banning of advertising and sponsorship, at the global level.