The ASA system is primarily funded by advertisers through a voluntary, arms-length levy. The levy and most other funding is collected by Asbof and Basbof, which helps to guarantee the ASA’s independence. Neither the ASA, Asbof or Basbof know which advertisers do, or do not, pay the levy. The ASA system receives no direct Government funding and therefore our work is free to the taxpayer.
ASA system’s funding channels
Since 1975, non-broadcast advertisers have funded the ASA system through a 0.1% levy on their display advertising spend. So, £1,000 spent on an outdoor campaign could levy £1 towards funding the ASA system. The levy is automatically added by advertisers’ media agencies to their invoices. Media agencies collect the levy and pass it quarterly to Asbof. If spend bypasses media agencies, Asbof encourages media to collect an equivalent amount from their direct advertisers.
Since 1992, direct mail marketers have funded the ASA system through the Mailing Standards Levy, which is set at 0.2%, collected by the Royal Mail and passed to Asbof. That funding covers the cost of the ASA system’s role regulating direct mail, as well as regulating the use of data for direct marketing that began in 1992.
Since 2003/4, broadcast advertisers have funded the ASA system through a 0.1% levy on their TV and radio advertising spend, again collected by media agencies but passed to Basbof. Teleshopping channels have also contributed to Basbof since then. That funding covers the cost of the ASA system’s role regulating TV and radio ads, and teleshopping, which began in 2004.
Since 2010/11, media agencies have applied the 0.1% levy to advertisers’ paid search advertising booked by them, again passed to Asbof. That funding contributes to the cost of the ASA system’s regulation of advertisers’ own advertising claims on their own websites, social media spaces and apps, which began in 2011.
Since 2016, some of Google’s direct search advertisers (i.e. those who do not book their search advertising with Google via media agencies) have funded the ASA system through a 0.1% levy on their paid search advertising, collected on an opt-in basis via the asbof.withgoogle site.
In 2020, Google became the first large online platform to contribute to the ASA directly, via its agreement with the European Advertising Standards Alliance (EASA). That agreement involved Google becoming the first online platform member of EASA and contributing to the annual funding of all the ad standards bodies in EASA membership (including the ASA system).
Since 2021, other large online platforms like Meta and TikTok have contributed to the ASA system through direct annual contributions to Asbof.
The ASA system receives a small amount of consultancy income from Ofcom for its work on Less Healthy Food ad regulation and also receives direct income from charging for some training and events and premium industry advice services.
What the funding pays for
The ASA’s funding means the ASA system has the necessary resources optimally to deliver our strategy.
The levy is the only part of the system that is voluntary. Advertisers can choose to pay the levy, but they cannot choose to ignore the Advertising Codes or the ASA’s rulings or regulation. If advertisers who choose not to pay the levy break the Advertising Codes, the ASA system can and does publish rulings, undertake monitoring and enforcement activity and apply sanctions.
A look at the rulings the ASA publishes each week demonstrates that we apply the Codes without fear or favour. It is common for the ASA to rule publicly against ads by the biggest companies in the UK and the world.
Ultimately, the authority of the ASA system both derives from and is dependent on the long-term commitment of all those involved in the advertising industry. Without that commitment, self-/co-regulation simply could not work effectively.
You can view our most recent financial report here: 2023 Financial report. You can view financial reports before 2023, through our archive of annual reports.