Advertising Ethics

DTC Advertising Can Rebuild Consumer Trust Through Third Party Self-Regulation

A recent consumer survey, reported in the January 28, 2008, edition of Advertising Age, concluded that 34 percent of adults aged 18 to 26 agree with the statement “I trust pharmaceutical companies less than I used to.” That indictment of a segment of business that is critical to the health of Americans, and to our industry, was not helped by the troubling allegation that ads for Vytorin continued for over a year after internal medical research showed one major claim lacked support.

As one who believes in the importance and value of prescription drug advertising directed to consumers and who has worked hard over the past 15 years to permit and protect it, I urge that the industry rebuild public trust through the highest ethical advertising. I am not talking about reactive public relations campaigns, but proactive interaction between client and agency so as to present truthful and highly ethical medical information to consumers who count on it.

This latest episode has strengthened the unwise and now standard call from some members of Congress to severely restrict DTC advertising through a two- or three-year moratorium on ads for new prescription products. This is not a medical solution, but a political strategy by critics who don’t want consumers to have access to drug advertising. We must remember—and continue to communicate—that people benefit from advertising, as long as it is truthful and trusted.

Consumer trust is inextricably linked with advertising ethics. A study conducted in 1996 by Bozell Worldwide showed that consumers ranked “ethics and values” as the number-one factor in assessing whether or not a company can be called a “corporate good citizen.”¹ The prescription drug industry has developed standards for directing their ads to consumers. Known as the PhRMA DTC Guiding Principles, these guidelines include a recommendation that “all DTC information should be accurate and not misleading, should make claims only when supported by substantial evidence, should reflect balance between risks and benefits, and should be consistent with FDA approved labeling.” I would personally propose that these principles be augmented to specify that full, internal discussions should take place between clients and agencies when developing appropriate advertising claims. And agencies should be aware of all of the scientific support—or lack thereof—that can be relied on for each claim. In order to effectively create ethical DTC advertising, clients and agencies must address these issues early in the process.

Best of all, these strengthened PhRMA guidelines would be overseen by a third-party group such as the National Advertising Division of the Council of Better Business Bureaus. This step will build trust and credibility for this important industry.

We know that consumers continue to benefit from truthful prescription drug ads and that doctors have benefited from better educated patients.² But the industry too will benefit from ethical DTC advertising and marketing by building consumer trust.

¹ The study “Global Corporate Citizenship: Improving Perceptions in the 90’s.” was conducted by Bozell Worldwide, The Wall Street Journal International Edition and the Nihon Keizai Shimbun in 1996.

² Out of 3,000 patients in a Health Affairs study, 35 percent discussed an ad for a medication during their appointment, and of that population, 25 percent received a new diagnosis. Approximately 43 percent of the new diagnoses were for “high priority” conditions such as hypertension, diabetes, depression and high cholesterol.

Attention, But at What Cost?

Belvedere Vodka has introduced a new provocative print and television campaign to compete against Grey Goose in the luxury vodka market. “The brand is donning fishnets, getting spanked in public and otherwise behaving lewdly in an attempt to stand out in the increasingly crowded luxury vodka category.” AdAge.com, December 3, 2007. (View TV commercial.)

In my previous column, I defined ethical advertising to include Taste and Decency and counseled that the client and agency should proactively consider the ethical consequences of advertising that could be considered offensive by the brands customers.

Apparently in this case client and agency agreed on the shocking portrayal of women to attack competitor Grey Goose’s “uptown” image. Paul Ashworth, Moet’s senior VP – Belvedere, said of the new $20 million campaign, “We want to be sexy, and we want to be provocative.” Ewen Cameron, Berlin Cameron executive creative director, said the campaign is meant to make consumers take sides: “Brands need to say, ‘are you with us or with them?’”

But did they consider the ethical consequences of a campaign that may offend woman vodka drinkers? Women constitute 49 percent of the luxury vodka market¹. Clearly they were aware of the negative implications. From the same AdAge.com article: “According to Mr. Ashworth, several cable networks refused to run the original spot. Outtakes—including several shots using the bottle as an explicitly sexual prop—will be featured on a new Web site set to launch in early December.”

Perhaps the Spirits category is different from other brand marketing. Arthur Shapiro, a veteran spirits industry consultant, opines “One way to stand out at a crowded party is to put a lampshade on your head. It doesn’t necessarily make a good impression, but it does make one.”

This is an assumption that is often heard in the industry: “It’s good to get the customer’s attention even if it makes them mad.” But how can we conclude that a potential customer angered by advertising will purchase the brand? I believe that women searching for an upscale vodka would be more attracted to a brand connecting to them through ethical advertising. This seems to have been proven by Dove’s very successful Campaign for Real Beauty, which was still risky in its depiction of women but was also developed with them in mind.

¹http://www.sparklingnuvo.com/Press/courant_2007-06-10.pdf

Advertising Ethics: An Introduction

Advertising is the most competitive industry in America. It facilitates both performance and price competition among products and services. To do so it must compete for the consumers’ limited time and attention. It must be persuasive and credible, and as I believe and urge—ethical—to build brand loyalty and trust. In my view not enough attention is given to advertising ethics.

It is understandable that professionals and students of advertising stress the Four P’s of Marketing: Product, Price, Promotion and Place. Yet, how often are the positive and negative consequences of advertising ethics proactively taken into consideration? Not often enough. To the contrary, clients are forced to deal reactively with irate consumers who have taken offense from claims and depictions in their ads.

Take the print ad for Dolce & Gabbana that appeared in Esquire magazine: “A woman, fully clothed in a tight dress and spiked heels, lies on her back, hips raised as a bare-chested man holds her down and four other men look on. The menace in the situation is underscored by the fact the woman is blankly unsmiling and some of the men appear to have slight sneers on their faces.” Brandweek, February 20, 2007. Women and women’s organizations quickly took offense. The National Organization for Woman charged that the ad depicted “Stylized gang rape.”

It is difficult for me to see how this ad advanced Dolce & Gabbana, which markets upscale Italian fashions to women. Moreover, it certainly did not advance the image of the advertising industry.

This ad ran afoul of what I would call “taste and decency,” a most difficult area of advertising ethics. I want to make it clear that I do not believe in politically correct speech, and I would be the first to combat any attempt by government to regulate in this area. But we must be very sensitive to the ethical concerns of our consumers.

It is up to the company and its ad agency to internally articulate and practice advertising ethics for its brands. I believe this will enhance brand reputation and consumer loyalty. Take the time in advance to proactively discuss the ethical consequences of ad claims and depictions. I know the devil is in the details. I don’t want to suggest a burdensome process here. In future columns I will provide my guidelines, and I would appreciate your suggestions.

Advertising ethics in my view also includes truthfulness and fairness, which includes the nature of the audience and the nature of the product. Over the next few months I would like to open a dialogue on questions regarding children’s advertising, multicultural marketing and other challenges presented by taste and decency. Please join in the discussion by leaving comments below.