The Committee of Advertising Practice (CAP), the body that is responsible for non-broadcast advertising rules, has moved to close loopholes in its regulation, particularly for gambling advertisers.
The changes, which are now already in force, will have a significant impact on how advertising is done on the air. Radio stations have been playing advertising for gambling brands for many years, especially sports betting sponsorships during sports event broadcasting.
These new regulations aim to ensure responsible advertising and prevent underage gambling. But they are also changing the world of radio advertising as we know it. In this article, our gambling and advertising experts explore how the CAP rules will transform creative strategies, increase compliance burdens, and force a rethink for brands and broadcasters in the audio space.
What the New CAP Gambling Rules Say
The latest CAP update introduces more strict regulatory standards, which move from simply prohibiting to air content of ‘particular appeal’ to under-18s to anything of ‘strong appeal.’ This doesn’t sound like such a big change, but the ramifications are potentially huge. Key changes explicitly forbid the use of personalities, themes, or music with strong youth appeal.
Top flight footballers, celebrities with significant under-18s social media followings, and youth-orientated music are now off limits. This means that traditional methods of gambling advertising from the best-rated UK casinos in the radio space, often targeted towards adults, are now banned.
The rules demand that marketers satisfy themselves with a high degree of confidence that their ad will not appeal to under-18s before broadcast. These rules build upon existing Advertising Standards Agency (ASA) rulings and form a part of the wider gambling review from the government. Their aim is to reinforce the core principles of social responsibility and the protection of vulnerable people from harm.
Why Radio is Uniquely Exposed
Radio has been a traditionally strong part of the gambling advertiser’s marketing mix, particularly through sponsorships of talk shows on sports talk radio that attract a broad audience. While these programmes are usually targeted towards adults, their significant listenership under the age of 18 highlight radio’s primary vulnerability under the new regime.
The medium has a power to reach mass audiences using its tone and personalities, such as well-known presenters of charismatic voiceovers, which now may cross the regulatory lines if these personalities have what could be deemed as ‘strong appeal’ to under-18s.
Radio’s faster production turnaround and historically different, laxer compliance processes compared to pre-clearance systems for TV, make it more susceptible to inadvertent breaches. In short, the way of doing radio, particularly sports radio, needs to change significantly to comply with these regulations.
Immediate Impact on Radio Advertisers
Advertisers will be forced to radically rethink their creative messaging as a result of the ruling. The charismatic, personality driven-ads of the past must be replaced with a neutral, informative tone. It’s going to be quite the shift. Ads on radio must be information-based, avoid emotional or aspirational appeal.
Compliance is expected to become more costly and time-consuming, as the ASA expects to see detailed assessments proving the ad’s lack of strong youth appeal, requiring much deeper due diligence on any presenters or music used.
This complexity and risk may push smaller betting brands and affiliates to reduce their advertising spend to shift to more to less complex platforms. When looking at radio broadcasts, this can translate to potentially heavy revenue losses from canceling what used to be well-established advertising slots, promotion gambling slots. Furthermore, it can cause the termination of long-standing sponsorship deals of sports programs by licensed gambling operators.
How Broadcasters and Brands Adapt
In an attempt to adapt to this new landscape, radio stations and gambling operators will need to work closely with regulating authorities, their internal compliance teams and pre-clearance agencies like industry body Radiocentre. Using factual scripts devoid of hype, avoiding emotional or aspirational appeals, and using neutral language. The best-rated UK online casinos are already taking a step ahead and also implementing responsible gambling messages in their advertising. This will become the new normal for radio stations and advertisers alike.
The use of presenters will need to vetted very closely to ensure they adhere to the ‘strong appeal’ criteria, potentially relying on older, less youth-centric voices and restricting some forms of advertising content to late at night when it can be argued the effect on under-18s will be diminished.
Radio stations should also invest in staff training on the new rules and launch a thorough review of their sponsorship acceptance policies. To mitigate revenue loss, radio stations will need to find new partnerships to bridge the gap from a potential loss of gambling advertising. Opportunities and methods to work within the guidance are available, but will take time and more work to get the framework right.
Long-Term Outlook for Radio Advertising
Over the next 1-2 years, the new CAP rules are likely to reshape the radio advertising space as we know it. Less reliance on gambling revenue can potentially drive radio stations towards creating a more more diverse advertiser base, ultimately leading to a healthier commercial ecosystem.
Public perception and ongoing regulatory scrutiny will continue to influence creative freedom, likely bringing a more restrained tone for gambling ads. Some will agree with this, however, some will consider this an unfair target on radio stations at a time when the media landscape is shifting.
Despite this, the challenge also presents an opportunity for innovation. We may see more sophisticated branded content and storytelling that complies with the rules, or partnerships focused on promoting responsible gaming, helping to rebuild listener trust in both the medium and the licensed gambling industry.
Conclusion
Currently, these new CAP rules are causing a lot of anxiety to radio broadcasters and advertisers alike. Their aims and goals are honourable – to foster a responsible and more sustainable environment and ensure that under 18s are protected. The increased compliance costs and creative constraints will be a challenge, but one that affiliates, gambling brands, and radio stations must take these challenges head on.
By embracing these new changes and trying to work with regulators, advertisers, and station owners to create a more responsible code of ethics that promotes safe gambling, the radio industry can adapt to this new terrain as it has many times before with new regulations and industry challenges. Its journey to meet these standards will be crucial in maintaining its credibility and keeping up its trusted relationship with the listening public.