What are the benefits?

Self-regulation entails several benefits for policy makers, consumers, marketers, and society as a whole.

• For marketers: It is often estimated that 1/3 to 1/2 of a company’s market capitalisation is represented by its brand reputation, which is why consumer trust in the brand is crucial to corporate success. 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. Maximised returns on long term investments on advertising benefit not only advertisers but also agencies and media, who will see a higher demand for creative yet responsible advertising.
• For policy makers: Self-regulatory ad standards provide an additional layer of consumer protection that complements the legal framework. National advertising self-regulatory bodies help avoid problems before they happen by providing copy advice. They keep track of key concerns about advertising and take steps to address them when needed.
• For consumers: Self-regulation provides a cheap (typically cost-free), fast and efficient solution to handle consumer complaints.