Alcohol Advertising Targeting Youth and Minorities.

Alcohol Advertising

Targeting Youth and Minorities

Huge 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 2001

Alcohol 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 commercials

Alcohol 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 States

1999 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 placement

1. 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 12-20

2. 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 older

3. 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 knew that the primary target market included a sizable underage market

on eight of the 15 television shows most popular with teens

report noted that a few companies had taken steps to reduce the likelihood that a substantial underage audience would see their products promoted in movies and on television

The 2003 FTC UpdateIn March, 2003 Congress directed the FTC to1. determine whether the industry had adopted

recommendations regarding self-regulation from the 1999 report

2. study the impact of the expansion of ads for new flavored malt beverages

FTC issued its report in September 2003 FTC report noted that youth drinking remained high in

2002 one-fifth of eighth graders one-third of 10th graders half of 12th graders

1. Flavored Malt Beverages (FMBs)

FMBs (a/k/a “alcopops”), introduced in the late 1990's, combine characteristics of beer and distilled spirits

As new products, receive a larger share of advertising dollars than other beer products: 2% of total beer advertising in 1998 17% of total beer advertising in 2002

In 2001, Center for Science in the Public Interest (CSPI) had asked FTC to investigate whether FMBs were being targeted to minors

The FTC reviewed whether: FMBs were being placed among non-alcoholic

beverages in retail outlets advertising was targeted to an underage

audience survey evidence showed that teens were more

likely than adults to be aware of and use the products

FTC found no evidence supporting the first two allegations by CSPI and that the survey methodology used to determine the third was flawed

In its 2003 investigation, FTC reviewed the following aspects of FMB marketing: ad placement ad content effect of marketing on minors

a. Advertising placementFTC investigation found that over 99% of dollars spent to advertise FMBs on television,

radio and print complied with the "50% over 21" standard but ads were still placed in venues with substantial

underage audience composition to minimize this possibility, five companies maintained lists

of programs on which they would not place ads; instructed buyers not to place ads on MTV or UPN wrestling or extreme sports shows teen oriented shows such as: Malcolm in the Middle, Gilmore

Girls, Boston Public, Grounded for Life, Celebrity Death Match, Dawson's Creek, Heaven and Popular (among others)

another company set a “70% over 21” standard two companies did not advertise in print or broadcast media

b. Advertising content

FTC subpoenaed planning and other documents that reflected the industry's marketing strategy

concluded that the intended target market for FMBs was consumers in the 21-27 or 29 year old age group

In fact, the majority of FMB drinkers were over 27

c. Effect of marketing on minors FTC was concerned that the sweet taste of

FMBs would appeal to minors and that advertising aimed at those over 21 would have a greater "spillover" effect than for other alcoholic beverages

evidence collected by the FTC did not provide information about the impact on minors of expanded marketing for FMBs

however, FTC noted that teen drinking actually dropped between 2000 and 2002, the period during which advertising for FMBs increased

2. The Status of Advertising Self-Regulation

FTC examined the extent to which the industry had implemented recommendations in the 1999 report

a. Third-Party Review 1999 Report suggested that self-regulation

is most effective when internal mechanisms are supplemented by third-party review

FTC found that only "modest steps" had been taken to adopt such systems

as an example of a successful third-party review, FTC cited Coors Brewing Company's agreement to adopt BBB's Advertising Pledge Program

BBB Advertising Pledge Program

upon receipt of a complaint, BBB determines whether an advertising campaign violates the company's voluntary advertising pledge

if BBB decides the pledge has been violated, may recommend that the campaign be modified or discontinued

May, 2003 BBB considered a complaint concerning a Coors ad showing an outdoor party at a ski resort

complaint alleged that the ad appeals to snowboarders partygoers would be leaving the party in cars

complaint asserted that the ad violated a Coors advertising pledge standard: “We will not portray or encourage high-risk

activities by anybody who is drinking or has been drinking”

The BBB found that: pledge defines high risk activities as those that require

high degree of alertness or coordination, e.g. the operation of motor vehicles boating and other water sports operation of equipment or machinery skiing, climbing, or contact sports

ad does portray some persons acting in an uninhibited manner

nothing in the commercial suggests that anyone is leaving or about to leave

nothing suggests that any person will necessarily be driving within a short period of time after events depicted

Also in May, 2003 BBB considered a complaint about the Coors "Because We Can" ad campaign

complaint alleged violation of nine different provisions of the Coors advertising pledge, including the pledge: “to place ads where the audience is

at least 60% 21 and older”

BBB concluded that the ad violated two pledges: “will not condone overconsumption

or irresponsible drinking” “advertising and marketing will be

responsible and in good taste” Coors disputed the BBB's findings but

agreed to withdraw the campaign

b. Advertising Placement1999 Report criticized the "50% over 21" standard as resulting in

large underage audiences recommended that industry members raise standard

for placement and do after-the-fact audits of placements

2003 FTC reported that: placement compliance had improved "considerably"

since 1999 report all three associations had amended codes to require

"70% over 21" standard two of the three industries require members to

conduct periodic post-placement audits

c. Advertising Content1999 Report recommended that companies target ads to persons 25

and older or not place ads with substantial appeal to underage consumers (even though they also appeal to adults)

some companies responded that since many alcohol consumers develop brand loyalty by age 25, necessary to target drinkers between the age of 21 and 24

2003 Report: industry documents show that alcohol industry members

do make efforts to target ad content to persons of legal drinking age

some advertising targeted to youngest legal drinkers continues to risk appealing to minors

d. Product Placement

1999 Report recommended that product placements

be limited to movies rated "R" or having mature themes

not be made in films and programs where underage person is the primary character

According to 2003 Report, companies: appeared to restrict alcohol product

placements to movies and television shows in mature themes or "R" ratings

avoided movies with themes that appeal to underage consumers, such as "coming of age" films

rejected requests to place products in movies that displayed irresponsible drinking, drunk driving, or college drinking

Beer Institute Code has specific provisions concerning product placements; prohibits placement in films that:

depict underage drinking show irresponsible consumption in

connection with driving are particularly attractive to children

or have underage primary characters

Criticism of the FTC ReportA number of organizations complained that FTC simply

adopted the facts provided by the industryParticular concerns are that: all advertising aimed a young adults, whether for

FMBs or other alcoholic drinks, will spill over into the underage market

"It's impossible to construct an advertisement that appeals to a 21-year-old on his 21st birthday and doesn't appeal to someone who's 18 years old or maybe even 16" (CSPI)

70% rule is still too weak because it doesn't take into account the total number of underage viewers or readers E.g., the percentage of underage consumers

watching the Super Bowl is small, but the total number is substantial

Youth Exposure to Alcohol in 2001

According to a series of reports by the Center on Alcohol Marketing and Youth (CAMY), youth exposure to alcohol advertising on television, in magazines and on the radio remains substantial, despite what is indicated in the FTC Report

Alcohol Advertising and Minorities

The Target MarketOverall, minority groups drink less than whitesHowever: the impact of alcohol on minority

communities is greater than that on white communities

in minority communities, among those who do drink, the heaviest consumers drink "prodigious" amounts

Because they are growing in size, minority communities are an attractive target market for alcoholic beverage marketers

Malt Liquor

Malt liquor is targeted primarily to urban African-Americans and Latinos

African American drinkers are four times as likely to consume it as the general population

African Americans ages 18-24 are nearly five times as likely to consume it as the general population

although marketed, packaged and sold like beer, it is much more potent than beer:

alcohol content is as much as 8%, compared to an average of 4.6% for beer

most commonly sold in 40-ounce containers twice the content of a regular beer

single 40-ounce bottle has the same amount of alcohol as five shots of whiskey

it's cheap 40-ounce bottles sells for between $1

and $2 in 1990's was the fastest-growing

segment of the beer market sales increased almost 25%

compared to 5% for beer sales

Advertising early ads used images of sex and power

Colt 45 current ads continue those themes but appeal to

younger market; use of gangster rap musicians, gang symbolism, hip-hop images, etc. St. Ides Phat Boy

billboard advertising particularly intrusive and much more prevalent in minority neighborhoods than white

study in a Latino community found children see as many as 60 alcohol ads on one-way trip between school and home

What’s new in 2004/2005?

1.Drinking becoming more common among teenage girls than boys

Drinking is increasing among teens Rate of increase greater for girls than

boys Increase appears to be advertising-

related

Study published July, 2004 in Archives of Pediatric and Adolescent Medicine

Larger percentage of girls 12-20 were exposed to ads than women over 21 Women 21-34 (prime target of

marketing)

Biggest change was in ads for low-alcohol drinks Alcohol iced tea Wine coolers

From 2001-2002 Boys’ exposure increased 46% Girls’ exposure increased 216%

2. Cable TV advertising for liquor is increasing Effective March 1, 2005 CNN became first

national cable news network to accept commercials for distilled spirits

Joined growing list of national cable channels Others involve sports, entertainment or financial

programming Critics express concern about exposure of

children and teens CNN counters its audience is concentrated

in 25-54-year-old age group

3. Distilled Spirits Council making public code review board decisions

DISCUS code review board Comprised of senior member

company representatives Advisory board of outside experts

from academia, government and broadcasting

Charged with reviewing complaints about advertising and marketing materials

Announced March 8, 2005 it would release reports every six months

Reports would include complaints response from advertiser action taken

Initial report included 15 complaints