In this section you will:
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Define promotional marketing and explain the role and purpose of the IPM within the wider advertising industry.
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Describe the structure and responsibilities of the ASA and its related organisations, including how they regulate advertising and promotional marketing.
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Explain how complaints to the ASA are made and processed, and understand the potential outcomes and implications for promoters.
1.1 – Promotions and the Role of the IPM
What does the term promotion mean?
Who are the IPM?
The IPM was founded in 1933 as the Sales Promotion Association (SPA). Over the years it went through some name changes, and now over 90 years later, it’s the Institute of Promotional Marketing (IPM). The IPM is the dedicated trade body for promotional marketing and is the IPM is the self-regulating body that governs promotional marketing in the UK and sits within the larger framework of advertising regulation.
So, what exactly does the IPM offer?
Protection
The IPM protects promoters by helping ensure promotions are legal and compliant with relevant regulations. It also promotes the value of promotional marketing by setting clear standards, sharing best practice, and supporting responsible, ethical campaigns that build trust with consumers and stakeholders. In doing so, it helps create a level playing field across the industry, giving brands and agencies confidence to innovate while managing risk responsibly.
Driving Best Practice Across Promotional Marketing
Seeking progression and monitoring changes in attitudes or legislation that might affect the IPM’s members and the industry ensures the IPM is always seeking best practice. The Institute of Promotional Marketing helps agencies, brands, charities ensure compliance with the relevant codes and laws.
Shared Experiences across a Professional Nework
Joining the IPM gives members access to a network of businesses that work across the promotional marketing industry. IPM membership also opens up access to the Legal Advisory Service, training courses, awards, updates on industry trends and government consultations.
1.2 – The Advertising Industry
Marketing in the UK is governed by a Self-Regulatory System
The self-regulatory system comprises 3 bodies. The Advertising Standards Authority (ASA), the Advertising Standards Board of Finance (ASBOF) and the Committee of Advertising Practice (CAP).
Advertising Standards Authority
The Advertising Standards Authority (ASA), established in 1962, is the UK’s independent regulator of marketing across all media, and it investigates and adjudicated possible breaches of the self-regulatory code. In 2022-2023 the ASA required amendments or withdrawals to 31,227 ads which was up 54% on the previous year. 96% of investigations were proactive – only 4% were in response to a complaint.
Committee of Advertising Practice
The Advertising Standards Board of Finance (ASBOF) funds the system through a levy on advertising and direct marketing expenditure. Incomes comes from a variety of sources including an 0.1% levy on the cost of advertising space, 0.2% levy on certain types of direct mail, a lump sum from the EASA. The funds are provided by ASBOF to the ASA to perform its role and carry out its regulatory functions. The ASA funds CAP. In 2022-2023 ASBOF raised over £7,300,000. ASBOF also appoints the chairman of CAP (this is a part time position).
Committee of Advertising Practice
CAP creates, reviews, amends the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (CAP Code). The Broadcast Committee of Advertising Practice (BCAP) which writes the UK Code of Broadcast Advertising (BCAP Code).
CAP’s role is to ensure that marketing communications with the scope of the CAP Code (“commissioned, prepared, placed or published in the UK”), are compliant with the CAP Code.
When running a sales promotion, it’s not just the CAP Code that’s relevant.
Data & Marketing Association Code of Practice
The DMA Code of Practice sets standards for responsible marketing, advertising and promotional activity. It is particularly relevant where consumer data is used or where direct marketing techniques are involved.
Premium Rate (Telephony) Services
If using a premium rate (telephony) service, organisations must comply with the Regulation of Premium Rate Services Order 2024 and must be registered with Ofcom before providing any premium rate services.
Portman Group Codes of Practice (Alcohol)
The Portman Group’s Codes of Practice cover the naming, packaging and promotion of alcoholic drinks, as well as alcohol sponsorship. These codes help ensure marketing activity is socially responsible and appropriate.
There’s legislation too (over 200 pieces touch on promotional marketing but here are the main ones):
`1.3 – Complaints to the ASA
In 2024 the ASA received 37,824 complaints about 24,015 adverts.
The ASA can start its own investigations. It is currently using an Active Ad Monitoring system to use AI to seek out online ads which might be in breach of the Codes!
A complaint can be made on the ASA website on this page. It is free to make a complaint. The complainant needs to provide their name and whether they are complaining as an individual, complaining about a competitor, or on behalf of an organisation. Photos of the materials and details of where the ad was seen need to be provided. The complaints handling process (non-Broadcast) is set out here (and Broadcast is here).
The ad must be within the remit of the ASA (list is here):
Press ads, Radio and TV ads (including teleshopping presentations), Ads on the internet, smartphones and tablets, Ad claims on companies’ own websites, Commercial e-mail and text messages, Posters/billboards, Leaflets and brochures, Ads at the cinema, Direct mail, whether addressed to you personally or not. Social media posts are also covered.
1.4 Summary
In Part 1, we explored the role of the IPM and how it fits within the wider advertising and promotional marketing industry. We also looked at the UK advertising regulatory framework, including how complaints are handled by the ASA and the distinct roles of the ASA, ASBOF and CAP in setting standards, funding regulation and enforcing compliance.
