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Advertising self-regulation works best within a regulatory framework, and has numerous advantages both for consumers and advertisers as well as regulators.
Protecting consumers: Advertising is a vital element of the economy by informing consumers of the different products and services available. Effective advertising self-regulation helps ensure that this advertising is responsible and can be trusted.
Consumers can voice concerns: It also provides an additional layer of consumer protection, especially in areas such as taste and decency of an ad. Through this system the consumer can complain quickly, at no cost, and the advertiser must demonstrate that its advertisement did not breach the code, rather than the complainant proving that it did.
For the Advertising Industry:
Maintain consumer trust and brand reputation: Consumer trust in a brand is crucial to corporate success, which is why brand reputation is extremely important. Advertising self-regulation, through the promotion of responsible advertising, helps build consumer trust in brands, which in turn builds brand loyalty, increases sales, and strengthens market share.
Ad standards complementing regulation: Advertising standards are designed to complement regulation. The costs of developing, implementing and enforcing ad standards are carried by the local ad ecosystem