TAM, SAM, SOM & Market Share Explained

The ASA's Brand Advertising Exemption: Essential Insights for Small Businesses

Update Understanding the Latest Brand Advertising Exemption in the UK The UK's advertising landscape is undergoing significant changes as new regulations aim to tackle the pressing issue of childhood obesity by restricting the marketing of less healthy food and drink products. The Advertising Standards Authority (ASA) has introduced a Brand Advertising Exemption, which provides critical guidelines for businesses looking to adapt their advertising strategies in accordance with these new laws. This exemption is particularly vital for small businesses aiming to maintain their brand visibility while complying with regulations. The Core Principles of Brand Advertising Exemption According to the new regulations that will officially take effect on January 5, 2026, advertisements for identifiable less healthy products will be banned across various media, including TV, online platforms, and paid advertisements. However, the Brand Advertising Exemption offers businesses a path to promote their brand without directly advertising specific unhealthy products. This exemption will apply if the advertisement does not explicitly depict identifiable less healthy food and drink products. Therefore, an advertisement that focuses on a brand's identity — such as logos, slogans, or characters — but does not reference specific products can circumvent these restrictions. When Does the Exemption Apply? The exemptions provide a *safe harbor* for businesses, allowing them to promote brand identity using various marketing techniques. According to the ASA, a brand advertisement can promote a corporate identity or range of products as long as it does not depict identifiable less healthy products. What factors should small businesses focus on? A focus on corporate branding and ensuring an “identifiability test” is crucial — meaning that if a product cannot reasonably be identified as a less healthy offering, the advertisement may fall outside of the new restrictions. Essential Tips for Small Businesses For small businesses navigating this new advertising environment, there are several actionable steps to ensure compliance. Here are practical insights: Create Brand-Centric Advertisements: Focus on promoting the brand's overall identity instead of specific product offerings. Generic imagery, for instance, may also serve well here. Avoid Specific Cues: Steer clear of any recognizable depictions of less healthy products, whether through imagery, pack shots, or branding characters. Assess Product Naming: If your brand name is similar to a specific unhealthy product, consider potential exemptions by demonstrating historical brand use before July 16, 2025. Educational Marketing: Advertisements promoting social responsibility and sustainability commitments are permitted, further allowing brands to connect with consumers without falling under unhealthy product regulations. Consult Guidance Materials: Because the regulations remain complex and open to interpretation, staying updated with the ASA's implementation guidance will help brands maintain compliance. Understanding Identifiability: The Key Factor At the heart of these restrictions is the 'identifiability' concept. The regulations stress that the ASA will evaluate advertisements on a case-by-case basis, primarily assessing whether a consumer can identify an ad as promoting a less healthy product. For instance, if a brand showcases imagery that realistically depicts food or drink, it may be scrutinized to see if it parallels with an identifiable less healthy product. Thus, businesses are urged to be cautious and ensure ambiguity in branding imagery. Looking Ahead: Implications for the Advertising Landscape The future of brand advertising in the UK highlights a shift towards responsible marketing practices. The ambition is to foster healthier choices among young people, yet the opportunities for brand engagement will remain robust for those navigating these regulations wisely. Small businesses can adapt their strategies to leverage the Brand Advertising Exemption effectively, but they must remain vigilant about compliance as the implementation date approaches. While the overall regulatory environment may seem restrictive, businesses focusing on brand identity and non-product-specific marketing can thrive. This creates a unique opportunity for companies to innovate in their marketing approaches while contributing positively to public health efforts.