Posted by Karen Clayton as Online Advertising
An interesting article in NMA last week outlined how a recent change to the Committee of Advertising Practice codes will now allow charities to show comparative ads on TV and radio for the first time. Charities are now able to tell the public exactly how they spend their donations compared to others.
The recession is continuing to hit charities hard: a Charity Commission study last year found that 56% of charities have been affected by the economic downturn, up from 52% at the start of 2009.
So while critics worry that these new advertising changes will encourage ‘one-upmanship’ and divisions in the sector, charities say that they have to be more aggressive in distinguishing themselves and the work they do in order to educate the public and survive.
What are your thoughts on this news story? Leave a comment below!
7 Responses
N Azam
March 22nd, 2010 at 9:04 pm
1Interesting piece. Like you, Karen, I’m a bit unnerved about the fact that charities may be competing with each other in a direct way. It seems a bit undignified.
Nathan Harrington
March 23rd, 2010 at 2:14 pm
2Seems a bit unsavoury – how does anyone define which charities are worthy causes and which aren’t? Surely it’s personal choice.
A year from now, will we start seeing charities in court over defamtory ad content? Risk here that charities start using donations to fight legal cases.
Then again, they operate in a competitive world, like the rest of us…
Rob Barham
March 24th, 2010 at 8:47 am
3Sounds strange at first but as a donor wouldn’t you want to know that your money is being used efficiently and getting to where it’s needed most ?
N Azam
March 25th, 2010 at 12:37 pm
4Nathan – I can see where you’re coming from, and personally have the same opinion.
Rob – “Sounds strange at first but as a donor wouldn’t you want to know that your money is being used efficiently and getting to where it’s needed most ?”
Yeah, it’s important they are efficient. So I personally take an interest in what proportion of income a charity is spending on admin, salaries etc. v. how much is spent on their actual cause.
However, not sure if I’d want e.g. one animal charity competing against another in a direct way.
Mike @ Oyster Media
March 26th, 2010 at 4:27 pm
5It costs a lot to recruit donors to a charity and it is the big charities that invest the most into fundraising budgets. I am aware of charities spending 20% of their income on acquiring new donors and developing existing donors.
The potential minefield is how charities account for their spend. There are many different ways to account for charity expenditure – when does spend on ‘public awareness’ end and ‘fundraising’ begin? Much of the British public already think that charity employees work for free and that every penny goes to the cause.
It would be an own-goal for a big charity to advertise their fundraising efficiency. You won’t hear many charities (other than Comic Relief and Sport Relief) saying that “every penny goes to the cause”… it doesn’t happen. My verdict is that the major charities will keep quiet and not use this new clause.
Pam Sagoo
March 26th, 2010 at 7:12 pm
6Interesting thoughts there Mike @ OysterMedia. You say “when does spend on ‘public awareness’ end and ‘fundraising’ begin?” – there’s certainly seems to be a very fine line between them nowadays!
Whether or not some charities start using comparative ads remains to be seen, but I’d definitely advise on ‘watching this space’!
John Pixium
July 15th, 2010 at 1:51 pm
7This is really a nice blog. I like the way affiliate marketing works.
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