The Advertising Standards Authority is leaning on the tech giants for interim funding.
The Advertising Board of Finance (Asbof) has set up a new taskforce to help secure sustainable, long term funding for the Advertising Standards Authority (ASA) system – but Meta and Google have stepped in for interim support.
Currently funded primarily by a levy on advertising and direct marketing expenditure, the system comprises of three, self-regulatory advertising bodies; the ASA, the Committee of Advertising Practice (CAP), and Asbof.
However, this new taskforce will not be completely independent as it is indirectly funded by Meta and Google, two of the largest advertisers in the world.
The two tech giants have provided interim funding to support the system while a stable and financially sustainable solution is found. Asbof, the independent body founded to organise the ASA’s funding, has set up the taskforce.
In 2020, Google became the first online platform to directly contribute to the ASA, with both Meta and TikTok following suit by way of direct annual contributions to Asbof.
Outside of these donations, the funding model as it stands for the organisation is largely the same as it has been since 1974, and is at risk of becoming outdated thanks to the evolving modern advertising landscape.
The new taskforce is aimed at identifying ways to ensure the ASA has adequate investment in order to operate with a sustainable, long-term funding model – which will look to secure advertising regulation in the UK, protecting public trust.
“Together, Google and Meta are contributing enough to keep the ASA on an even financial keel for the next two years while a long-term solution is found. Google and Meta are existing supporters of self-regulation through EASA [European Advertising Standards Alliance], understand the value of the ASA and are committed to supporting the self-regulation system,” an Asbof spokesperson told Affiliate Leaders.
“The Taskforce itself isn’t financially supported by Google and Meta. It is being run independently by Asbof, which is bringing together a range of industry stakeholders to ensure the future solution is sustainable and fair to all parties.”
As part of the agreement, both Google and Meta will each have a representative on the taskforce.
Meta has recently come under fire by regulatory bodies over its advertising model. An investigation by the UK’s Financial Conduct Authority (FCA) recently found Meta repeatedly failed to prevent illegal financial ads, despite vows to block them.
The European Consumer Organisation has also claimed Meta is still violating EU laws with its ad model, with the European Consumer Organisation calling on regulators to impose “periodic penalty payments” where appropriate.
