Alcohol AdvertisingHuge sums are spent annually on advertisingAlcohol advertising appeals to underage youthAlcohol advertising and marketing have a significant impact on youth decisions to drinkIndustry has adopted voluntary codes of conduct through its three trade associations1999 FTC Report on the success of self-regulation1. Advertising placementSlide 8Slide 92. Advertising contentSlide 113. Product PlacementThe 2003 FTC Update1. Flavored Malt Beverages (FMBs)Slide 15Slide 16a. Advertising placementb. Advertising contentc. Effect of marketing on minors2. The Status of Advertising Self-Regulationa. Third-Party ReviewBBB Advertising Pledge ProgramSlide 23Slide 24Slide 25Slide 26b. Advertising Placementc. Advertising Contentd. Product PlacementSlide 30Slide 31Criticism of the FTC ReportYouth Exposure to Alcohol in 2001Alcohol Advertising and MinoritiesThe Target MarketMalt LiquorSlide 37Slide 38AdvertisingWhat’s new in 2004/2005?1.Drinking becoming more common among teenage girls than boysSlide 42Slide 432. Cable TV advertising for liquor is increasing3. Distilled Spirits Council making public code review board decisionsSlide 46Alcohol AdvertisingTargeting Youth and MinoritiesHuge sums are spent annually on advertisingAccording to the FTC, in 2001 $1.57 billion was spent on alcohol advertising in measured mediatelevisionradioprintoutdoor advertising FTC estimated in 1999 that alcohol industry spends two to three times this amount each year to promote products through sponsorshipinternet advertisingpoint-of-sale materialsproduct placementbrand-logo’d itemsmeans that alcohol industry spent about $5 billion on advertising and promotion in 2001Alcohol advertising appeals to underage youth1996 study of children ages nine to eleven found that children were more familiar with Budweiser’s television frogs than Kellogg’s Tony the Tiger, the Mighty Morphin Power Rangers, or Smokey the Bear1998 the Budweiser lizard commercials were the most popular commercials on televisionsince 1995 Budweiser beer ads have been the most popular ads for consumers, including teenagersjunior high students can name more beer brands than presidentsyounger children can sing the jingles and mimic the characters in alcohol commercialsAlcohol advertising and marketing have a significant impact on youth decisions to drinkstudy of 12 year-olds found that children who were more aware of beer advertising held more favorable views on drinking and expressed an intention to drink more often as adults than did children who were less knowledgeable about the adsstudy of 1,000 young people found that exposure to and liking of alcohol advertisements affects whether young people will drink alcoholUSA Today survey found that teens say ads have a greater influence on their desire to drink in general than on their desire to buy a particular brand of alcoholeighty percent of general public respondents in a poll by the Bureau of Alcohol, Tobacco and Firearms believed “that alcohol advertising influences youth to drink alcoholic beverages”Industry has adopted voluntary codes of conduct through its three trade associationsBeer Institute--represents the interests of more than 200 brewers that produce more than 90 percent of the beer brewed in the U.S. Distilled Spirits Council of the United States (DISCUS)--represents most of the major U.S. distilled spirits Wine Institute--represents over 300 California vintners; members market over 75% of wine sold in the United States1999 FTC Report on the success of self-regulationobtained information from the three associations and eight alcoholic beverage companiesAnheuser-Busch, Inc.; Bacardi-Martini USA, Inc.; Brown-Forman Corporation; Coors Brewing Company, Inc.; Diageo plc; Miller Brewing Company, Inc.; Stroh Brewery Company, Inc.; and Joseph E. Seagram & Sons, Inc.focused on three areas:1. advertising placement2. advertising content3. product placement1. Advertising placementvoluntary industry codes required thatmore than 50 percent of the audience for alcohol advertising be over 21FTC report reflected mixed compliance with the codes' requirement:half of the companies were able to show that nearly all of their ads were shown to a majority legal-age audienceother four companies did not fare as well:two companies' data showed weeks when many ads were shown to majority underage audiences.two others failed to provide reliable information showing the audience for their adsreport also pointed out that only 30 percent of the U.S. population is under the age of 21, and only 10 percent age 11 to 17 thus "the 50 percent standard...permits placement of ads on programs where the underage population far exceeds its representation in the population“report recommended that the industry raise the standard to no more than 25% of the audience be under 21other organizations weighed in on the issue as well:Mothers Against Drunk Driving (MADD) proposes a limit of 10%Center on Alcohol Marketing and Youth (CAMY) suggests 15.8%corresponds with the percentage of the population aged 12-202. Advertising contentvoluntary codes prohibit alcohol advertisers from using advertising content that is more appealing to underage consumers than to adults (including 21-year olds)each of the three codes also expressly prohibits the use of certain characters or people in alcohol ads:actors under 25 (beer)children (spirits)Santa Claus (beer and spirits)sports celebrities or "current or traditional heroes of the young" (wine)1999 FTC report noted that industry members appear to make significant efforts to comply with the codes' standards, instructing their staffs and ad agencies to avoid content with greater appeal to kids than to adultsreport also notes that since standard permits ads targeted at 21-year olds, might have "overflow" appeal to younger consumersreport identifies “best practices” that some companies follow that reduce the likelihood that an ad will have substantial appeal to underage consumerse.g., targeting ads to persons 25 and older3. Product PlacementFTC Report noted that in 1997-98 the eight reporting companies placed products in233 motion picturesone or more episodes of 181 different television seriesalcohol placement occurred in 'PG' and 'PG-13' films with significant appeal to teens and childrenin films where the advertiser