ASA - Advertising Standards Authority

Download a PDF version of this guidance note here: Guidance Note on Identification of Advertisements.

This Guidance Note is to be read alongside the Advertising Codes.

Note: This information is not legal advice, and it does not bind the Complaints or Appeal Boards.

Objective

This Guidance Note is intended to help the advertising industry and the community understand the identification requirements in the Advertising Standards Code for advertising targeting New Zealanders.

Identifying an Advertisement

Advertising Standards Code: Rule 2 (a) Identification – Advertisements must be identified as such.

There are two steps to consider when assessing compliance with this rule:

Is the content related to the advertiser’s product, services or position, an “Advertisement”?
If the content is an Advertisement, is this clear to the audiences?

In many cases it will be obvious to, and well understood by, the audience that they are engaging with an advertisement. In these instances, no action is required.

Where it is not obvious that the content is an advertisement, all parties (e.g. advertiser, agency, media, influencer) are responsible to make it clear it is an ad. This is important for platforms that have a mix of content and advertising, and platforms that have accounts with both organic and paid content.

Information or labelling located within FAQs, T&Cs or at the end of a long publication may not be sufficient to comply with Rule 2 (a) of the Advertising Standards Code.

This Guidance Note applies where it may not be clear to the audience the content is advertising.

Step 1. Is the content an “Advertisement”?

1.1 ASA definition of an Advertisement

“Advertising and advertisement(s)” are any message, the content of which is controlled directly or indirectly by the advertiser, expressed in any language and communicated in any medium with the intent to influence the choice, opinion or behaviour of those to whom it is addressed.

This broad definition captures a wide range of advertising activity that is controlled by the advertiser. It does not apply to product packaging*, bona fide news, independent reviews, editorial and broadcast content not controlled by advertisers.

*Except in the case of the naming, labelling and packaging of Alcohol. See the Alcohol Advertising and Promotion Code for more details.

When determining whether an advertiser has direct or indirect control of content, a good test is the level of advertiser approval. An advertiser may provide information on their product, service or position, but that alone may not mean the published content is advertising.

1.2 Payment

The ASA’s definition of advertising does not necessarily require financial payment for the content to be considered an advertisement. Other arrangements, such as the provision of free products or services in return for published content, could meet the ASA definition of advertising.

1.3 Influencers

Influencer content that is about a product or service and is in return for some form of payment, financial or otherwise, is an ad.

It should be obvious to consumers if the content is an ad when they first see it. They shouldn’t have to click or otherwise interact with it or spend time working out whether it’s an ad or not. This means that declaring an association in a bio or somewhere not directly in the ad will not be sufficient.

Organic influencer content that relates to, for example, their lifestyle or their personal opinion, is unlikely to be ad content providing there is no form of payment for it. When an influencer has a mix of paid and organic content on a platform, the content that is advertising needs to be clearly identified.

Native advertising is content generated by brands which does not look out of place where it is being viewed, heard or experienced.

Examples of this could be sponsored content under a magazine or news masthead, or affiliate marketing on a blog.

Advertisers’ efforts to make their advertising more engaging must not disguise the fact that it is advertising. Content provided by the advertiser must be clearly recognisable to an audience as advertising.

Ensure advertorials are easily distinguished from editorial or programme content
Affiliate advertising must be clearly recognisable as advertising
Appropriately identify content recommendations or links that serve advertisements to readers under headings such as “you may also be interested in these…”

Step 2. If the content is an advertisement, is it clearly identified to the audience?

2.1 Assessing whether the advertisement is clearly identified

When deciding if an advertisement is clearly identified, consider it from the audience’s perspective, in the context the ad is in.

If it is clear to the audience that it is advertising, then no further disclosures are required.

The following may make it clear it is advertising:

The nature of the ad content
Where the content is placed
How the audience is directed to the content
The theme, visuals and language used in the messaging
The use of brand names, logos or labels (which may indicate commercial intent)
The audience in the context of the medium used

2.2 Use of advertisement ‘identifiers’

There is some flexibility when it comes to identifying ad content. Where an ‘identifier’ is needed, this could include logos or brand names combined with other visual or audio cues, such as background shading, outlines, borders, graphics and video or audio messages depending on the medium.

Where identifiers are used, they should be obvious and able to be easily read, seen or heard. Things to consider:

The position, size and clarity of the identifier
The length of time the identifier is present
If the identifier is equally clear on different mediums / devices
How the audience will interpret the identifier. For example, adults and children will have a different level of understanding

When it is not obvious that content is an advertisement, use an ‘identifier’. Examples include (but are not limited to) the following words / labels and the suitability of each one will depend on the context the ad is in:

Ad
Advert
Advertisement
Advertising feature
Sponsored content
Boxed or highlighted content labelled as advertising
An obvious “call to action” such as:
- phone now
- go to URL for more information / to order now
- brought to you by

Examples

To assist with the application of the Code, see the following examples. They are for illustrative purposes only and are provided to help parties understand their obligations.

The examples do not constitute a definitive set of possible scenarios and have not been tested through the ASA Complaints Board process.

Example 1

A YouTube influencer has received a skin care product to review. The understanding between the advertiser and YouTube influencer is that product content provided by the advertiser is to be included in this review. The YouTube influencer is free to make other comments as they see fit.

This is likely to be an advertisement as the advertiser has control over the content. It should be clearly identified as such.

Example 2

A radio broadcaster is provided with an advertiser’s script for a product. It says ‘Product X is a wonderful new way to clean your car. It works by gently removing dirt and shining the car at the same time. Couldn’t be easier. Phone 0800 XYZ now or go to our Facebook page for more information’. The script is written in a way that makes it sound as though the radio broadcaster is spontaneously talking about the product. The radio broadcaster is also encouraged to ‘ad lib’ some of the comments.

This is likely to be an advertisement. The radio broadcaster has included obvious information such as ‘phone now or go to our Facebook page’. This is likely to be sufficient for the audience to know this is an advertisement.

Example 3

A TV home improvement show has a section where the presenter talks about the features and benefits of a building product. The script has been provided by the advertiser and the producer of the show is contractually required to deliver the script. The advertiser has paid for the product to be featured.

This is likely to be an advertisement as the advertiser has control over the content. It should be clearly identified as such (this could include acknowledgement in the programme credits).

Example 4

A fashion brand sponsors an event attended by a range of people including journalists. Each journalist is free to write whatever they choose about the event.

Whilst the event was sponsored by the brand, there is no control over the content which may be provided by the journalists. They can write and publish their own independent content. Each journalist’s published content would not likely be considered advertising.

Example 5

A website that advertises holiday destinations publishes a review by a prominent blogger. In exchange for a trip to the holiday destination the blogger was provided with some specific content to include in their review. The advertiser has control over the content of the blogger’s review.

This is likely to be an advertisement and should be clearly identified as such.

Example 6

A user of a product generates content which tags [XYZ] brand. The user-generated content appears on the [XYZ] brand profile.

Although indirect, because it appears on [XYZ]’s brand profile, it is likely to be an advertisement and should be clearly identified as such. Brands should untag their brand and/or request removal of the content if it does not comply with the Advertising Standards Codes.

Example 7

A prominent influencer promotes a [ABC] Clinic’s cosmetics treatment on her personal TikTok account with a picture of the influencer’s face and text saying, “This [ABC] Clinic treatment has benefits that are going to last for years!”. The Clinic provided the treatment for free with the understanding the influencer would post about it, but there is no identification to indicate it is advertising. It also includes an affiliate code for a discount with your next treatment (note influencers earn income from affiliate codes).

This is likely to be an advertisement and should be clearly identified as such.

Example 8

A news story is published about a new product and the product ambassador uses the news story in a post, adding information and a call to action.

This is likely to be an advertisement and should be clearly identified as such.

FURTHER ASSISTANCE

The ASA is available to provide advice and assistance about the complaints process.