Advertising Standards Board of Finance

Last updated

The Advertising Standards Board of Finance (ASBOF) [1] collects a voluntary levy on advertising costs to fund the Advertising Standards Authority (ASA). Typically, the levy is 0.1% on non-broadcast costs (e.g. 0.1% of the cost of placing a newspaper advertisement), and 0.2% of the cost of a Mailsort contract. ASBOF collects the levy and then passes the funds on to the ASA to ensure that the ASA are unaware of who has contributed to its funding. This avoids the question of money influencing the ASA's decision in its rulings.

A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent.

Advertising form of communication for marketing, typically paid for

Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea. Sponsors of advertising are typically businesses wishing to promote their products or services. Advertising is differentiated from public relations in that an advertiser pays for and has control over the message. It differs from personal selling in that the message is non-personal, i.e., not directed to a particular individual. Advertising is communicated through various mass media, including traditional media such as newspapers, magazines, television, radio, outdoor advertising or direct mail; and new media such as search results, blogs, social media, websites or text messages. The actual presentation of the message in a medium is referred to as an advertisement, or "ad" or advert for short.

Advertising Standards Authority (United Kingdom)

The Advertising Standards Authority (ASA) is the self-regulatory organisation of the advertising industry in the United Kingdom. The ASA is a non-statutory organisation and so cannot interpret or enforce legislation. However, its code of advertising practice broadly reflects legislation in many instances. The ASA is not funded by the British government, but by a levy on the advertising industry.

All advertising charges (except classified lineage and semi-display) are subject to a 0.1% Advertising Standards Board of Finance (asbof) levy, payable by advertisers to help finance the self-regulatory system administered by the Advertising Standards Authority.

Classified advertising form of advertising which is particularly common in newspapers, online and other periodicals

Classified advertising is a form of advertising which is particularly common in newspapers, online and other periodicals which may be sold or distributed free of charge. Classified advertisements are much cheaper than larger display advertisements used by businesses, although display advertising is more widespread.

The levy will be collected from advertisers by advertising agencies or, in case of direct accounts, by media owners.

In December 2009 after 18 months' consultation with the industry and ASA, it was agreed that the levy would be expanded to include paid search advertising. [2]

Related Research Articles

Public finance study of the role of the government in the economy; branch of economics

Public finance is the study of the role of the government in the economy. It is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.

Income statement

An income statement or profit and loss account is one of the financial statements of a company and shows the company’s revenues and expenses during a particular period.

Cost per impression (CPI), or cost per thousand impressions (CPM), is a term used in traditional advertising media selection, as well as online advertising and marketing related to web traffic. It refers to the cost of traditional advertising or internet marketing or email advertising campaigns, where advertisers pay each time an ad is displayed. CPI is the cost or expense incurred for each potential customer who views the advertisement(s), while CPM refers to the cost or expense incurred for every thousand potential customers who view the advertisement(s). CPM is an initialism for cost per mille, with mille being Latin for thousand.

Truth in Lending Act

The Truth in Lending Act (TILA) of 1968 is a United States federal law designed to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.

Cost per mille (CPM), also called cost per thousand (CPT), is a commonly used measurement in advertising. It is the cost an advertiser pays for one thousand views or clicks of an advertisement. Radio, television, newspaper, magazine, out-of-home advertising, and online advertising can be purchased on the basis of exposing the ad to one thousand viewers or listeners. It is used in marketing as a benchmarking metric to calculate the relative cost of an advertising campaign or an ad message in a given medium.

In marketing, lead generation is the initiation of consumer interest or enquiry into products or services of a business. Leads can be created for purposes such as list building, e-newsletter list acquisition or for sales leads. The methods for generating leads typically fall under the umbrella of advertising, but may also include non-paid sources such as organic search engine results or referrals from existing customers.

Mobile phone content advertising is the promotion of ring tones, games and other mobile phone services. Such services are usually subscription-based and use the short message service (SMS) system to join up to them. Another method is broadcasting messages to the mobile phone's idle-screen, enabling the mobile operators or advertisers to reach millions in real-time. The advertising and sale of ring tones in particular has seen a massive growth in recent years, with some commercial breaks, particularly on music television channels and in motor racing, being dominated by such adverts. Advertising in newspapers and magazines has also become popular.

The Broadcast Advertising Standards Board Of Finance (BASBOF) is an organization in the United Kingdom that funds the Advertising Standards Authority (ASA). It collects a voluntary levy on advertising costs, typically the levy is 0.1% on display advertising costs. BASBOF collects the levy and passes the funds on to the ASA anonymously to ensure that the ASA are unaware of who has contributed to its funding. This avoids the question of money influencing the ASA's decision in its rulings.

The Committee of Advertising Practice (CAP) is the sister organisation of, and is administered by, the Advertising Standards Authority (ASA). It is the body that created and maintains the UK Code of Non-broadcast Advertising, Sales Promotion and Direct Marketing which regulates non-broadcast marketing communications.

The UK Code of Non-broadcast Advertising, Sales Promotion and Direct Marketing is the rule book for non-broadcast advertisements, sales promotions and direct marketing communications in the United Kingdom. It is written and maintained by the Committee of Advertising Practice (CAP) and administered by the Advertising Standards Authority (ASA). The 12th edition of the CAP Code came into force in September 2010.

A landfill tax or levy is a form of tax that is applied in some countries to increase the cost of landfill. The tax is typically levied in units of currency per unit of weight or volume. The tax is in addition to the overall cost of landfill and forms a proportion of the gate fee.

The Road Accident Fund (RAF) in South Africa, is a state insurer established by statute. It provides insurance cover to all drivers of motor vehicles in South Africa in respect of liability incurred or damage caused as a result of a traffic collision. Liability incurred in relation to property damage is excluded from cover. The Road Accident Fund operates a system whereby the claimant is assigned a percentage of responsibility for the accident, and the Road Accident Fund pays the claimant a percentage of a full settlement based on a percentage that was not deemed to be their responsibility. Insurance premiums are collected by the Road Accident Fund through a levy on motor vehicle fuel.

Ministry of Finance (India) finance ministry of India

The Ministry of Finance is an important ministry within the Government of India concerned with the economy of India, serving as the Indian Treasury Department. In particular, it concerns itself with taxation, financial legislation, financial institutions, capital markets, centre and state finances, and the Union Budget.

The Meat and Livestock Commission, (MLC), was set up by the UK Government under the Agriculture Act 1967 with Government money with the remit to promote the sale of red meat. The MLC was previously an independent non-departmental public body, but since 1 April 2008 it has been part of the Agriculture and Horticulture Development Board.

Ad Standards manages the complaint resolution process of the advertising self-regulation system in Australia.

Giffgaff is a mobile telephone network running as a Mobile Virtual Network Operator (MVNO) using the United Kingdom O2 network. Owned by O2's owners Telefónica, Giffgaff was launched on 25 November 2009.

0800 Reverse is a reverse charge (collect) call service that provides reverse charge calls within the United Kingdom. The service is operated by Reverse Corp Ltd. An 0800 Reverse charge call is placed by dialing the phoneword 0800 REVERSE, and the number can be dialled as a free call from most out-of-credit mobile phones, and most fixed land lines. 0800 Reverse has been advertised in television campaigns featuring Holly Valance, and the service is advertised on many phone boxes throughout the United Kingdom.

Advertising Standards Authority (South Africa)

The Advertising Standards Authority of South Africa was an independent entity organised and financed by members of the marketing communications industry of South Africa. Its purpose is to manage South Africa's voluntary, self-regulating system of advertising. The ASA worked with a variety of marketing communication industry stakeholders to ensure that advertising content in the country meets the requirements of its Code of Advertising Practice and to control advertising content in the South African public's interest. The ASA of South Africa's Code of Advertising Practice is based on the Consolidated ICC Code of Marketing and Advertising Communication Practice prepared by the International Chamber of Commerce. Member organisations, including advertisers, advertising agencies, and the media agree upon advertising standards in the ASA code and work to effect the swift correction or removal of any advertising that fails to meet their agreed-upon standards.

CEASE therapy is used by naturopaths who claim, without evidence, that it can treat or even cure people with autism. It involves a mixture of supplements, high-dose vitamin C, 'orthomolecular support', dietary restrictions and homeopathy and was developed by Dutch doctor Tinus Smits. Smits claimed to have used it to treat over 300 children with autism. The therapy became more notable in 2017/2018 because of regulatory action taken by professional bodies in The Netherlands, UK and Canada following a series of complaints about unfounded claims.

References

  1. Asbof web site
  2. ASBOF Archived March 1, 2012, at the Wayback Machine . press release.