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UK advertising in a digital age

/ April 11th 2018
Online Regulation

The House of Lords Communications Committee has today published its report UK advertising in a digital age.

The report found that the UK’s advertising industry is overall a success story, citing advertising as a creative endeavour which not only contributes to the UK’s culture and society but also added £120 billion to the UK’s economy and supported over 1 million jobs in 2016.

They too identified an explosion of businesses using technologies which make money from delivering advertising online, which often rely on processing personal data of consumers.

The Committee recommended that the industry should take greater steps to self-regulate through independent bodies and that a market study should be undertaken of the digital advertising market to ensure that it is working fairly for businesses and consumers.

Stephen Woodford, Chief Executive, Advertising Association, commented:

“We welcome the publication of the House of Lords Communications Committee report into the advertising industry and thank the Committee Members and staff for all their hard work. We are pleased the vital contribution that advertising makes to the UK economy is recognised. The report highlights that our industry generates more than £120bn per year for GDP and supports nearly a million jobs in communities right across the country. Also, that the UK is also a global success story, with the latest available figures showing exports of British ad services reached a record high of £5.8bn in 2016 – demonstrating our status as a world-class hub for the industry.

“UK advertising, like our fellow industries, awaits the results of the Brexit negotiations as much rides on this in terms of our future success. As such, we appreciate the recognition of the huge value overseas talent brings to British advertising and the report’s recommendation that the country retain access to the world’s brightest and best talent after we leave the EU.

“The report has also drawn attention to the rapid change taking place in our industry through the impact of technology and both the opportunities and the challenges this poses. Across the industry many organisations and trade bodies are working to ensure it continues to be a sustainable, competitive and trusted industry. The AA’s Trust in Advertising working group, chaired by the Phil Smith, ISBA and Paul Bainsfair, IPA, and involving senior figures from across our industry, will lead the way in ensuring our industry is on the front foot in meeting these challenges.

“We are also delighted to be asked to continue to lead the way on diversity, thanks in part to our industry-wide commitment to a diverse and multi-skilled workforce reflective of British society and the communities we see up and down the country. To this end, we work closely with organisations such as the Ideas Foundation to encourage young people into the creative industries, and we support advertising’s Diversity Taskforce to encourage more people from BAME communities to join our industry. We recognise the importance of everyone who wishes to work in UK advertising – whatever their background – being able to realise their full potential.”

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