What you need to know:

• Facebook has agreed to contribute directly to the AANA’s self regulatory system, which includes Ad Standards.
• The AANA says it will move towards a dual funding system, with major publishers and social platforms contributing directly.
• The system has been funded by a small levy on media spend that spending with digital platforms has bypassed to date.

Social media platforms and major publishers will contribute to funding the advertising industry’s system of self-regulation, relieving pressure on Ad Standards. To date, the advertising watchdog been trying to police huge volumes of digital ads without financial support from platforms.

Facebook has now joined the system, and the Australian Association of National Advertisers (AANA) said it is in discussions with other major digital platforms and media players to “achieve a sustainable and equitable funding arrangement”.

The AANA’s self-regulatory system was set up more than 20 years ago when virtually all advertising was in legacy and traditional media and made by media buying agencies.

Advertisers supporting the self-regulatory system have, historically, voluntarily paid a small levy on their media spend that is collected on their behalf by members of the Media Federation of Australia.

Those paying major publishers and digital platforms directly, however, have bypassed the current collection mechanism, AANA CEO John Broome said.

“At the same time, the increasing migration to digital has led to much more advertising content and hence a greater workload for Ad Standards. So, Facebook’s move to directly fund the self-regulatory system will help underpin its future financial sustainability,” he said.

“I am confident that we will continue to evolve our funding model so that we maintain a world class self-regulatory system that meets the Australian community’s expectations.”

Ad Standards received more than 3,500 complaints in 2020 and 5,200 in 2019.