BROADCASTERS URGE END TO ADVERTISING ‘DICTATES’



– NAB, RAB, and TVB: Discrimination in station ad buys ‘has no place’ in today’s media market –

WASHINGTON, DC — The National Association of Broadcasters, the Radio Advertising Bureau and the Television Bureau of Advertising joined forces last week in opposition to ‘urban dictates,’ an advertising practice in which companies refuse to place ads on radio and television stations with formats that attract African-American, Latino and Spanish-speaking audiences. 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).

“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,” the broadcast leaders wrote.

“Discrimination against broadcasters based on racial, gender or ethnic stereotyping has no place in today’s media marketplace.”
———————

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 or 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 expand ing 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.



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