New Zealand’s business advertising standards are widely considered as some of the best in the industry. Most are run through the Advertising Standards Code, which is regularly updated and applies to most industries, like, for example, alcohol advertising. Public members can complain to the ASA for any unlawful ads, after which the governing body can analyse the advertisement and check to see if it breaches any rules.
If it happens to do, the business will be asked to change the ad. Of course, businesses can appeal any decisions, with all of ASA’s decisions released publicly. The advertising landscape is changing all the time in order to satisfy businesses and members of the public. Of course, with the rise of new ads, the ASA is constantly working to update the legal framework and keep ads clean for the public.
In this guide, we’ll explore more about the main concepts of business advertising in New Zealand and see what the future holds.
The Key Principles of Business Advertising in NZ
The rules of business advertising in New Zealand rest on a couple of principles. They include social responsibility and truthful representation. Most of these principles can be seen in the advertising of online gambling content such as online pokies. Gambling advertisements are prohibited to make claims about the strong chance of winning unless there are facts behind them. Casinos can’t exaggerate the chances of winning in pokies or any other games, and they must not falsely state or imply that skills can influence the outcome of any game unless it truthfully does.
The ASA operates on these principles with the main goal being of ensuring that all business ads are legal and honest. The ad guidelines also state that ads must respect the principles of fair competition. Considering how crowded the online gaming market is, it’s easy to see why the online gambling ad guidelines are so strict.
Social Responsibility
Under social responsibility, the ASA states that businesses should plan their ads while having a responsibility to its target group of consumers and society in general. This means respecting customer privacy and obtaining content for the use of personal information.
Indecent and offensive material, exploiting young people, condoning unsafe behavior or undermining health and wellbeing are off-limits. Encouraging environmental degradation or harm is prohibited as well. This principle restricts the ads in several industries, most notably alcohol and tobacco, and online gaming.
Truthful Representation
All businesses in New Zealand must comply with the ad guidelines which are built on the principle of truthful representation. To put things into perspective, all businesses must identify their ads as a truthful representation of their product. Misleading ads are often reported by the public, which can then ask businesses to change their ads, or worse, fine them.
That’s why business ads in New Zealand pass through many filters, which ensure that the product is described as is. All advertising must be factual, and companies aren’t allowed to use deceptive statistics or data. Failure to do so results in a breach of the rules and potential fines.
The Ever-Evolving Market Trends
The NZ business industry is on the rise, mostly when it comes to digital platforms. There are new evolving trends on the market which might require changes to the legal landscape, especially when it comes to advertising guidelines. We’ll cover a few of the most popular trends shaped by consumer demand and the latest tech innovations.
Video Content
The video content industry is on the rise in New Zealand, dominating the current digital landscape. Platforms such as TikTok, Twitch, and YouTube are getting increasingly more popular. Many of them depend on ads built into the video content, which prompts changes in the legal framework.
As interactive video content is gaining traction, the ASA has imposed its basic principles in moderating what consumers are shown. Brands are looking for new ways to connect with their audience in real-time, but they must also pay respect to the ad guidelines to avoid being banned.
Influencer Marketing
Influencer marketing is a powerful tool and an evolving one. Nano-influencers have seen a rise, with a small number of influential followers. They’re an ideal partner for brands who are looking to build genuine connections with their followers. Of course, they must also respect the ad standards set by the ASA, and so far, things have been going well.
As brands are looking to partner with influencers, they must come up with campaigns that fully comply with the ad standards. In that way, they gain a new channel of advertising their services and products, one that could reach millions of new customers.
eCommerce Growth
New Zealand’s eCommerce industry has taken off in recent years, and there are no signs of it slowing down. It seems that Kiwis are comfortable with online shopping, and businesses are doing their best to enhance digital storefronts and meet this demand. This means consistent campaigns that pay attention to the ASA advertising guidelines.
The good news is that there are digital marketing companies that can provide optimized strategies that will see the ads succeed. They offer services for a seamless mobile experience, innovative payment solutions, and omnichannel strategies. All these strategies are in full compliance with the ad standards, ensuring that businesses don’t lose any ad revenue.
What the Future Looks Like
The future of advertising solutions in New Zealand is bright. While the ASA has set strict restrictions in place for advertising, the focus on truthful representation and social responsibility is a model many other countries should try and copy. It keeps the advertising landscape clean without hurting business profits.
As new ways of social interaction emerge, there might be a need for changes. The ASA will certainly find a way to moderate the emerging ad content while keeping its key principles in the picture. It’s an ever-evolving advertising landscape, but with a good moderator behind it, the future looks bright for all parties involved.
