a easier Chapter 2 Advertising in the Philippines Lesson 1 — History of Advertising in the Philippines and ‘Advertising Board of the Philippines and the Advertising Industry is Overview sas Philippine advertising dates back to the era of mass ol Spanish galleon trade. During this time, traders and merchants printed materials and posted announcements which were distributed to potential buyers to inform them of the availability, kind, quantity, and other such necessary information as regards merchandise for sale. Like any other sector, the advertising industry has its own problems which have continually affected it over the years. The industry, however, is determined to solve these problems on its own but it also needs government's assistance and support especially with respect to those issues involving the government. Objectives: At the end of the lesson, the students will be able to Identity the different advertising board of the Philippines. Describe the difference of advertising in the Philippines during the era of Spanish Galleon Trade and at the present. Understand the public's view of advertising as practiced in the Philippines. Discuss the relevance of government in advertising. Describe how does the public view advertising as it is practiced in the Philippines. Understand the importance of advertising to the public. It was only in the 1920s, however, that the establishments of one-man firms offering advertising services signaled the beginnings of what was soon to develop into what is known as the advertising industry. Pioneers in the Industry Included in the roster of the Industry's pioneering companies Minton, Manuel Buenaventura, were Clifford Butler, Frank Hal Store, and Mason Ancker. The direct personal selling was becoming more difficult as the market expanded further due to increased circulation of money which in turn increased the industry's clientele’s purchasing power.The Industry After the War Years The aftermath of World War II saw the establishment of Philprom, Inc., followed by other firms such as J. Walter Thompson Company Phils., Inc., Great Wall Advertising, HDM, DYR, Alcantara, and Ace-saatch and Saatchi Advertising Company. But it was the 60s that ushered the golden age of Philippine advertising. At this time, the Philippines proudly took its place among the leading advertising powers in Asia and was held up as a model at the first Asian advertising Congress. In due time, large companies based in Singapore, Bangkok, Taiwan and Indonesia consigned their advertising commitments in Manila’s advertising agencies, considered the best in the region, (over the years, sad to say, however, the country lost its competitive edge to Singapore and Hongkong). At the onset of the martial law regime, Philippine advertising entered a period of at best dubious and mediocre performance. Consumers lost no time raising a chorus of protests against what they deemed the blatant violation of the industry's basic tenets of honesty and decency by the very people swam to uphold these. Thus, the second National Advertising Congress filed 25 resolutions aimed at the upliftment and professionalization of the industry. During the Martial Law With the declaration of the Martial Law in September 1972, the succeeding months saw the country’s press, once considered Asia's freest, gradually silenced by virtue of a series of presidential decrees that effectively curbed its freedoms and authorized the closure of not only some newspapers and magazines but TV and radio stations as well In May, 1973, the Advertising Board of the Philippines, which is known as ABP for short, was created. It has as its founding members the three groups which forged the Code of Ethics. The ABP formally adopted the Code on April 15, 1975. Through the years, this Code of Ethics/Rules and Regulations underwent several revisions. On February 20, 1976, the ABP was deputized by the Print Media Council and the Broadcast Media Council to raise the ethics and standards of excellence of the mass media. The Martial Law as lifted in January 1981, the Print Media Council were abolished by the ABP kept its Screening and regulatory functions. However, there were no laws or decrees which explicitly stated that the advertising industry may or must regulate itself. The Advertising Board of the Philippines, also known as Adboard is composed of eight national organizations involved in advertising that are unified together to uphold the progress of Philippine advertising through self-regulation. Being the umbrella organization of the advertising industry, its mission is to practice world class advertising along with advocating professional ethics through responsible and truthful advertising. Adboard was formerly known as the Philippine Board of Advertising. The board was formed as a result of a series of meetings in 1973 by leaders in the advertising industry. They felt the urge to commit themselves in creating a committee to achieve their goal in serving the interests of the nation. The Board was established on May 3, 1974.The following are the national organizations which composes Adboard:Philippine Association Of National Advertisers (PANA) Association of Accredited Advertising Agencies-Philippines (4As-P) United Print Media Group (UPMG) Outdoor Advertising Association Of The Philippines (OAAP) Advertising Suppliers Association of the Philippines (ASAP) Cinema Advertising Association of the Philippines (CAAP) Marketing & Opinion Research Society of the Philippines (MORES) Independent Blocktimers Association of the Philippines (IBA) Philippine Association of National Advertisers (PANA) History + The first attempt after the war to organize those in advertising came with the founding of the old Advertising Club in 1948. The members composed of advertisers, media representatives, agency people, and others in related fields. + Because of the diverse interests of its members, and because it was more of a social club than a professional organization, it was dissolved in 1951. + In 1956, Robert Hinchman, Jr., Advertising Manager of Caltex, and Anacleto del Rosario took an active interest in getting advertising practitioners to form an organization patterned after the U.S. Association of National Advertisers. Background PANA is founded on four basic principles: 1. The belief that advertising is an essential factor in marketing of goods and services and, consequentially, is an important factor in the economic life of the country; 2. The belief that the interests if consumers should be the primary concern of advertisers and in the case of conflict, the interest of the consumer should prevail, 3. The belief that public confidence in advertising and advertised goods and services should be promoted, and therefore any practices that tend to undermine the confidence should be prevented or corrected. 4. The belief in the upliftment of the standards and practices of advertising * Their efforts resulted in an Organizational Meeting which was held on October 16, 1957 at the Old Manila Overseas Press Club. 45 representatives from various businesses, established the urgency of organizing the PANA.+ The organization of PANA was carried out by a Steering Committee, later on called the Organizational Committee. + On January 30, 1958, the Philippine Association of National Advertisers was born in a general meeting of representatives from 42 companies which elected the association's 11-member Board of Directors. PANA is the biggest and oldest non-stock, non-profit organization that unites the users of advertising belonging to every major industry in the country. Composed of more than 300 member companies, PANA recognizes and fulfils its role and leadership in the advertising industry as a self-regulatory body that is committed to the promotion of "Truth in Advertising”. Role: PANA recognizes and fulfils its role and leadership in the advertising industry as a self- regulatory body that is committed to the promotion of "Truth in Advertising”. MISSION. Its enhanced mission is to be an association of advertisers providing leadership, guidance and support in the promotion of effective, truthful and responsible marketing ‘communications, championing self ~ regulation, consumer protection, values formation and the advancement of the practice of marketing communications to global standards, In 1980, PANA established its very own foundation to serve as its advocacy and industry relations arm. The PANA Foundation (PANAF) aims to have a society that is aware of, involved, and ‘empowered in tackling issues relevant to its well-being with regard to the advertising industry, and to take on a pro-active stance on national issues affecting consumers and the general public. https://prezi.com/n60chsdethd-/philippine-association-of-national-advertisers-panal Personnel Piracy/Lack of Trained Manpower In 1982, Javier Calero Of J. Walter Thompson was already saying: "The piracy of qualified Personnel has been happening since time immemorial, and the reason for this is the lack of trained people.” Today, this problem stil exists. There is a dearth of skilled manpower since it is only very recently that schools have included Marketing Communications as a major subject leading to a Bachelor's Degree. The rampant piracy of personnel from one advertising agency or advertiser to another continues. This practice leads to higher production costs and fees as talented individuals are offered higher and higher salaries. ‘The Public’s View of Advertising as Practiced in the Philippines The principal law for consumer protection in the Philippines is the Consumer Act of the Philippines (Republic Act No. 7394). ... The law anchored on the basic policy of the state to protect the interests of the consumer, promote his general welfare and to establish standards of Conduct for business and industry. The principal law for consumer protection in the Philippines is the Consumer Act of the Philippines (Republic Act No. 7394). It came into effect on July 15, 1992.The law anchored on the basic policy of the state to protect the interests of the consumer, promote his general welfare and to establish standards of conduct for business and industry. Towards the end, the State shall implement measures to achieve the following objectives: 1. protection against hazards to health and safety; 2. protection against deceptive, unfair and unconscionable sales acts and practices; 3. provision of information and education to facilitate sound choice and the proper exercise of rights by the consumer; 4. provision of adequate rights and means of redress; and 5. involvement of consumer representatives in the formulation of social and economic policies. The provisions of the law shall be enforced by the following implementing agencies: 1, the Department of Health with respect to food, drugs, cosmetics, devices and substances; 2. the Department of Agriculture with respect to products related to agriculture, and 3. the Department of Trade and Industry with respect to other consumer products not specified above. ‘Amongst all the relevant departments involved in the implementation of RA 7394, the DTI plays the central role. Itis also the focal point for the ASEAN Consumer Protection Committee (AccP). [email protected] ‘www.dti.gov.ph Ethical advertising of medicines in Philippines In fact, ethical interactions provide a platform for health care professionals to have access to information they need. At the same time, patients ultimately benefit from these interactions as they are able to "access the medicines they need and that medicines are prescribed and used in ‘a manner that provides the maximum health care benefit” to them. On the other hand, the pharmaceutical industry recognizes that itis its obligation to provide accurate information and education about its products for a clear understanding of the appropriate use of prescription medicines. Advertising is one tool used to impart relevant medical information. Practice in the Philippines First implemented in 1993 by the Pharmaceutical and Healthcare Association of the Philippines, the Code of Pharmaceutical Marketing Practices was developed to govern ads of prescription products in medical journals/publications, among others. Under the Code, which is fully aligned with the Mexico City Declaration, ads for prescription medicines in traditional and on- line media are not allowed. For ads for both prescription and over-the-counter products, PHAP members are required to ensure that “all information, claims and graphical representations provided to health care professionals and members of the general public must be current, accurate, balanced and mustnot be misleading either directly, by implication, or by omission.” There is no room for ambiguity and claims must always be referenced. Also, unqualified superlatives are forbidden. The word "safe" for example, must likewise not be used without qualification. The word "new" cannot be used to describe any product, presentation, or therapeutic indication which has been available and generally promoted for more than 12 months in the Philippines. Furthermore, advertising in health care professional journals must contain brand names, generic names, and the name and address of the supplier. The Code added that full disclosure of product information is mandatory in ads appearing within 12 months after a product launch and abridged Product Information may be used 12 months after the product launch. The phrase "Please review Product Information before prescribing” should also be clearly printed; as well as. the date of production of the ad. Argument for allowing medicines advertising These ads took center stage in the ongoing Secretary's Cup debates launched by the Department of Health, the Universal Healthcare Study Group, and the Philippine Debaters Union, among other partners, notes the PHAP. Garie Ouano, a 4th year BS Economics student at the University of the Philippines (UP)- Diliman, opposed the motion to ban ads of health products. He argued that the main case against allowing medicines to be advertised is the misconception that it would lead to self-medication and inappropriate use. He defended that prescription medicine ads speak to a particular group of people who are in the position to discem and make rational judgments. He added that medicine manufacturers have absolutely no incentive to promote abuse or self- medication, and every incentive to promote proper use. “After all, what drug company would want bad news to be attached to their brands?” Mr. Quano reasoned that banning medicine ads is an extreme policy response. "We deal with unfair information all the time — or as the market would call it, ‘asymmetric’ information. It exists in financial markets, in labor markets, and virtually every market known to man, albeit in varying extents. Despite this reality, it was never the response of the state to ban the practice entirely. Should the drug companies become an exception to this rule? In the spirit of faimess, it shouldn't be," he said He added, "In a democratic set-up, the state's role is not merely to protect the vulnerable. The state role, in this case, is to achieve a balance of rights and interests. I continue to hold that banning drug advertisements is a denial of that responsibilty.” email [email protected] Advertising plays a strong role in the economy: It provides useful information to consumers that tells them about product and service choices, as well as comparing features, benefits, and prices. With more complete information, consumers and businesses often choose to purchase additional products and services.Review questions * Can you describe the difference between the advertising in the PI of Spanish Galleon Trade and at the present? + How do you understand the public's view of advertising as practice in the Philippines? lippines during the era Assessment questions * Choose one advertising board of the Philippines and give the history. * Discuss the relevance of government in advertising. ‘+ Can you describe how does the public view advertising as itis practiced in the Philippines.