A conversation with Chris Smith

13 September 2007

Lord Smith started work as the new ASA Chairman on 1 July 2007. With Government, consumer groups and sections of the media scrutinising advertising’s every step ever more closely, he has joined at a challenging time.

Two months into his role, Update@CAP was interested to hear Chris Smith’s thoughts on the role of the ASA, CAP and BCAP and some of the key problems facing the advertising industry and self-regulation today. He kindly agreed to answer our questions.  Here is what Chris Smith had to say:

Is self-regulation in good health?

I believe self-regulation is in very good health. In fact, the ASA remains the best example of self-regulation working. I think it does so because it’s a system that has been very carefully put together and tested over a long time. It is partly because of the separation of powers between BCAP and CAP, on the one hand, setting the codes on behalf of the industry and, on the other hand, the ASA combining a range of lay people with advertising professionals and making adjudications on complaints about advertising campaigns in the public interest. The self-regulatory system has stood the advertising industry in very good stead.   We have considerable challenges, not least in connection with food, gambling and alcohol advertising. But I am pretty confident that the self-regulatory system will take them in its stride.

What are the immediate priorities you want to drive to the top of the agenda?

Whatever my priorities are, whether we like it or not, some challenges are floating around at the top of the agenda already. I am, of course, referring to gambling, food and children and alcohol.

One of the driving forces placing them firmly at the centre of public debate is the tendency of my former colleagues, politicians, to see advertising as a useful scapegoat. Advertising does have a role to play in encouraging responsible behaviour in society but it is not solely responsible for the problems in the first place or, indeed, for solving them.

For instance, the UK has a growing problem with childhood obesity and that goes hand-in-hand with concerns about diet and the effect it has on how children grow up. But, instead of simply apportioning blame to advertising, we have to look at a whole range of solutions to tackle that problem. Dietary education, both of adults and children, the amount of exercise and the role that schools play in providing information are all key factors in addressing the problem of childhood obesity.

The danger is that politicians think that if they tackle the advertising they’ve solved the problem and don’t have to do anything else. Responsible advertising has a part to play in addressing some of these problems and it is a point I will continue to make as Chairman of the ASA. But advertising is a small part of a big picture. I shall reiterate this point to my political colleagues over the next few years.

The industry regularly asks for consistency from the ASA. How do you strike the balance between being a watchdog and working closely with industry and maintaining its confidence in what we do?

We have to make sure as a Council that our decisions are sensible, pragmatic, common-sense and as consistent as possible. But that doesn’t mean the ASA will always make the same decision according to previous history, year after year.  My job is to ensure that the ASA remains rational and reasonable in the decisions it makes.

As Chairman, I try to steer Council in the right way. We shall try to have as much consistency as possible but having regard to the need to respond to changes in society, technology and the advertising industry itself.

What are the benefits of the self-regulatory system to advertisers and consumers?

Being self-regulatory and not having Government-imposed regulation means we have a much quicker, more flexible and effective system that can respond to the public mood and to changes in the ways in which advertising takes place. In recent years, the ways in which advertising information has reached the consumer have changed hugely.

If we had a clunky statutory system that required legislation to be changed, we’d have a regulatory system that was miles behind the times. It would soon fall down. It couldn’t adapt in time to respond to the changes I’ve mentioned. A self-regulatory system can keep up with what the public needs. I think self-regulation is better than statutory regulation, both in putting the assurance in place for the industry and consumers and in having something that can adapt quickly to the modern world.

What are your thoughts on the advertising industry both in terms of what it contributes to society and, in terms of the negative headlines, what it has to do to maintain consumer trust?

Firstly, life would be an awful lot duller if there were no advertisements. I firmly believe that advertising adds colour to life. If you stopped the ordinary citizen I think you’ll find someone who can probably name five or six ads that they really like and can take some fun in.

It is a wonderfully creative profession and in that respect the UK does it rather better than most. Advertising in the UK is witty and clever and it assumes intelligence on the part of the consumer. It enables our industry to display creative talent and that is to be encouraged.

Also advertising is one of the most important parts of the creative industries and we mustn’t forget the integral part it plays in our economy. When I was Secretary of State, I spent a lot of time trying to wake everyone up to the importance of the creative industries generally. Advertising earns a substantial amount of money for the UK every year; it employs a lot of people, and even with all the problems it is facing, advertising is still a growing industry.   It is a very important part of the social and economic fabric of our society. The ASA can help to keep it that way.

You have spoken publicly about the regulatory challenges posed by new media, calling the Internet “an anarchic space”. Can you see a way ahead or is the Internet a bridge too far?

The Internet is indeed an anarchic space; that’s one of its glories and one of its dangers. Realistically, we shall never get a system that imposes regulation on everything. It would simply be impossible.

Even if you could get Government, Internet Service Providers and advertisers signed up, you still can’t control something that comes from outside the UK jurisdiction. It’s a field where statutory regulation is pretty much impossible.

The responsibility to grapple with this challenge lies with the industry. I believe the ASA has something to offer in this process. The ASA can help: we can share our experience of consumer concerns and expectations and offer advice to the industry. But it is up to the industry to seek our help; it’s not up to the ASA to dictate the terms of the journey.

Considering the pressures from Government, Europe and lobby groups, are these dark times for the advertising industry?

That is exactly why it is absolutely essential that the ASA continues to be an effective watchdog: to ward off those threats. Yes, storms are gathering but I think the industry could do worse than to bear these in mind: 

• The ad industry has to hold its nerve
• It needs to tell people and demonstrate that it is acting responsibly
• We have to acknowledge public concerns and find ways in which we can help to address them but without driving a stake through the heart of what is a very important industry
• It should support the ASA, remembering that the work we do champions the benefits of self-regulation, as it has supported us for so many years.