Participants’

Perspectives on Fine-Print Disclosures in TV Advertisements

Richard H. Kolbe Ph.D.

Kent State University

Department of Marketing

College of Business Administration

Background

Content Analyses of Prime Time and Children’s TV Ads

Survey of Those Who are Involved in the Presentation of Disclosures in TV Ads                (Conducted in 1995)       

All studies were conducted with Darrel Muehling       Washington State University

Sample of Top Managers 

100 Leading National Advertisers

100 Largest U.S. Advertising Agencies

As listed in Advertising Age

65 Major Television Media Firms

27 Regulatory Agencies and Advertising Trade Associations

ABC, CBS, NBC, Fox, MTV, ESPN, CNN, The Disney Channel

 FCC, FDA, FTC,                 U.S. Chamber of Commerce, NAD/NARB, AAAA, Advertising Council, Association of National Advertisers

Response Rate

Advertisers:  21 percent

Ad Agencies:  24 percent

Media Firms:  23 percent

Regulatory Agencies and Trade Associations:       48 percent

Overall Response Rate:  25 percent  

Fine-Print Disclosures Defined:  

Any part of an advertisement that appears in type size noticeably smaller than the headline or dominant ad copy

Any statement that is intended to augment, document, clarify, or delimit the selling message, offer advice, identify the product manufacturer, and/or provide supplemental information to the viewer

Issues Addressed

How do participants feel about fine-print disclosures on the dimension this advertising practice is most often criticized              (i.e., readability)?

Why are fine-print disclosures used in ads?

How important is the issue of fine- print disclosures to participants and to whom do they perceive this issue is most important?

Major Findings

On the Issue of Readability

 Most respondents believed that:

   Consumers do not read, cannot read, do not 	attempt to read fine-print disclosures in 	TV ads.

   Consumers cannot read disclosures in TV 		ads because it  is on the screen too 		briefly

   Advertisers do not expect consumers to 	read disclosures in TV ads

To Whom is the Issue of Fine-Print Disclosures Important?

The issue was perceived as important by each group of respondents.

Participants gave the issue more importance to other groups than themselves

   Advertisers:  Regulators and Media

Top Importance Ratings by Each Respondent Group

   Ad Agencies:  Regulators and Media

   Media Firms:   Ad Agencies and 			    Regulators

   Regulatory Bodies:  Ad Agencies and			             Regulators

   Trade Associations:  Ad Agencies and 				    Media

Why are Fine-Print Disclosures Used in TV Advertisements?

In response to the question:

Fine-print disclosures are usually     placed in ads because advertisers are required to do so.

     Ad Agencies	          4.92

     Media			  4.67

     Trade Associations      	  	    and Regulators	  4.54

     Advertisers		  4.33

                 (Based on a 5-point scale)

Conclusions

Participants in the presentation of fine-print disclosures in TV ads recognize that the messages are not readable and therefore have little communication value

Participants saw fine-print disclosures as an important issue, but saw it as more important to others than themselves

Value of a Dialogue between Participants to Generate Consumer Useful Remedies