Broadcast leaders call on ad agencies to end 'No Urban or Hispanic Dictates'

(March 31, 2008) In the wake of a recently adopted regulation by the Federal Communications Commission barring the practice by some advertisers of not placing ads with urban or Hispanic formatted radio and TV outlets, three leading media trade groups have distributed a call for an end to advertising discrimination.

The National Association of Broadcasters, the Radio Advertising Bureau and the Television Bureau of Advertising last week issued a join letter in opposition to "urban dictates." The letter, sent to roughly 4,200 advertising agencies, was signed by David K. Rehr, president and CEO for the National Association of Broadcasters (NAB); Jeff Haley, president of the Radio Advertising Bureau (RAB); and Chris Rohrs, president of the Television Bureau of Advertising (TVB).

The broadcast leaders wrote "there is significant anecdotal evidence of 'dictates' or policies against the purchase of advertising time on stations with formats that attract African-American, Latino and Spanish-speaking audiences. Under these policies, regardless of whether a station or its sales representative could show that the station's viewers or listeners met the target criteria that the advertiser sought, the advertiser or its agency refuses to buy time."

"Discrimination against broadcasters based on racial, gender or ethnic stereotyping has no place in today's media marketplace."

In December, at the urging of the Minority Media and Telecommunications Council, the FCC adopted regulations that "requires broadcasters renewing their licenses to certify that their advertising sales contracts do not discriminate on the basis of race or gender." [Click here for earlier story]

Commenting on the FCC regulation at the time of its adpotion, MMTC president, David Honig, said "the parties must observe these nondiscrimination clauses, just as they would observe any other terms of an advertising sales contract.

The MMTC estimates that eliminating "No Urban Dictates" and "No Hispanic Dictates" could produce up to a ten percent increase overall in ad revenues for stations oriented to African-American and Latino audiences.

The full text of the letter follows:

Dear Colleague:

On behalf of the members of the National Association of Broadcasters (NAB), the Radio Advertising Bureau (RAB) and the Television Bureau of Advertising (TVB), we are writing to ask for your support on an issue of fundamental fairness for both of our industries—eradicating discrimination against certain formats based on racial, gender, or ethnic stereotypes. We oppose such discriminatory practices and urge you to join us in working towards free and fair competition in the market for broadcast advertising time.

Although it has not been the subject of an empirical study, there is significant anecdotal evidence of "dictates" or policies against the purchase of advertising time on stations with formats that attract African-American, Latino and Spanish-speaking audiences. Under these policies, regardless of whether a station or its sales representative could show that the station’s viewers or listeners met the target criteria that the advertiser sought, the advertiser or its agency refuses to buy time. These policies severely curtail the amount of advertising dollars that an affected station can generate. They hamstring stations that are seeking to serve their local communities while delivering to advertisers audiences who spend hundreds of billions of dollars per year.

The NAB, RAB and TVB all support fair competition among all media. Discrimination against broadcasters based on racial, gender or ethnic stereotyping has no place in today’s media marketplace. Such discrimination is harmful to competition and diversity within the broadcasting industry. We are sure you’ll agree that it also makes no business sense for advertisers, who are only foreclosing potential consumers of their own goods and services.

We are aware that others share our views. A recent Federal Communications Commission decision acknowledges the harms arising from discriminatory practices and adopts a policy intended to prevent such practices. Similarly, the American Advertising Federation has adopted its Mosaic Principles and Practical Guidelines, which outline specific steps designed to promote three key principles:

(1) identify and take advantage of growth opportunities in multicultural markets; (2) generate ideas and profits by practicing inclusiveness and fairness; and (3) require accountability and measurable results. We know that these principles enjoy the support of advertising agencies, agency associations, and others.

We encourage your firm to join us in expanding upon existing initiatives and taking further steps towards ending any practice of harmful discrimination against formats in the purchase of advertising time. Demonstrating leadership on this issue can take many forms, whether it is the adoption of internal policies against discriminatory dictates, the development of educational programs for sales personnel about the harms that result from discrimination, public statements opposing discrimination, a combination of these steps, or other initiatives you may develop. The approaches we take as leaders on this issue should reflect the limitless creativity of the best talent within our respective industries, and should be tailored to suit the needs of specific companies and organizations within each industry.

Thank you for giving your time and consideration to this important issue.

Best wishes.

Sincerely,

David K. Rehr
President and CEO, National Association of Broadcasters

Jeff Haley
President, Radio Advertising Bureau

Chris Rohrs
President, Television Bureau of Advertising

cc: Ms. Nancy Hill, President and CEO, American Association of Advertising Agencies
Mr. Wally Snyder, President and CEO, American Advertising Federation
Mr. Robert D. Liodice, President and CEO, Association of National Advertisers

 

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