Friday, February 10th, 2012
As Obama makes his way to the White House, he brings with him a democrat-controlled congress, and a revised plan for the country?s federal agencies, which regulate media and advertising.
With the current financial crunch, the market will rely heavily on the government for support. Companies are now worrying, because policies will be tightened in favor of more government control.
Here are some of the things that are outlined by Brandweek (Note: none of these policies are confirmed, they are merely possibilities based on Obama?s campaign offerings).
?? An end to the corporate tax deduction for advertising: With the deficit in the trillions, preventing companies from writing off their ad expenses against their taxes would give the Obama White House a new way to fund its spending. This has already been floated by Obama?s new chief of staff, Rahm Emanuel. ?He has already started looking at ad deduction issues,? said Dan Jaffe, evp of the Assn. for National Advertisers. ?It is my guess that some people will revisit an across-the-board ad deduction as well.? Such a move would drive down ad spend as companies scramble to save their bottom lines from increased tax levels.
? Sweeping Internet privacy legislation: Sen. Byron Dorgan, D-N.D., and Rep. Ed Markey, D-Mass., propose outlawing behavioral targeting, cookies and ?deep-packet inspection? (a way for advertisers to see what Web users are downloading so they can serve relevant online ads). ?[Markey] said there should be some sort of global bill of privacy rights,? said Bennet Kelley, founder of the Internet Law Center in Santa Monica, Calif. Such a move could hobble the online ad business?the only area of marketing spend still growing. ?There?s absolutely going to be people screaming for privacy regulation,? added Michael Cassidy, CEO of Undertone Networks in New York.
? A ban on advertising food to children: Targeting junk food at kids is virtually illegal in the U.K., and if U.S. obesity rates don?t improve, American politicians will draw inspiration from across the pond. ?They could in theory project the tobacco experience to other new product categories, like alcoholic beverages, or certain snack foods to kids,? said Ron Urbach, a partner and FTC watcher at Davis & Gilbert in New York. ?Tobacco may be viewed from the government perspective as a success story.?
? The FCC takes a heavy hand with product placement: The agency?which has jurisdiction not only over TV and radio but also videogames?is currently considering disclosure requirements for branded entertainment. Strict disclosure could end burgeoning ad networks that are growing inside online games. ?That would have a dramatic effect on the converged industries of media, marketing, entertainment and the like,? said Urbach.?
For more, check out Brandweek.
