On September 1, 2022, Law No. 347-FZ, which amends the federal law "On Advertising", came into force. These changes introduce mandatory labeling and accounting for all types of advertising placed on the Russian-language Internet, known as the Runet. From September 1, 2023, the responsibility for violating these rules began to take effect. This article answers frequently asked questions to help you understand the main points: what is allowed, what is prohibited, and the potential consequences of violating the law. We will also explain how this new system works.
What is advertising labeling?
Advertising labeling involves adding a special "Advertising" mark to an advertisement and including information about the advertising identifier and the customer. Additionally, it requires the mandatory monthly transmission of advertising reports to the Unified Register of Internet Advertising (ERIR) through an Advertising Data Operator (ORD). This process is mandatory for all participants in the advertising market.
To comply with the law, advertisers, advertising distributors, and intermediaries need to choose a suitable Advertising Data Operator (ORD) and register their data with it. In popular advertising systems, the labeling process is usually automated, and it is sufficient to provide company information in your personal account.
What is ERIR and how do Advertising Data Operators (ORDs) work?
The Unified Register of Internet Advertising (ERIR) is a central repository of information about digital advertising placed within the Russian Federation. It contains data on customers, contractors, advertising costs, and statistics for each advertising creative.
Information in the ERIR comes through an Application Programming Interface (API) from specialized organizations known as Advertising Data Operators (ORDs). Direct data transmission to the ERIR is not possible, as all data must pass through an ORD.
Advertising Data Operators (ORDs) register advertisements and collect information from advertising market participants to transmit it to the ERIR. The ORD assigns each advertising creative a unique identifier, known as a token or ID, which is an alphanumeric code that allows tracking and management of advertising.
Currently, there are seven Advertising Data Operators: Yandex, VK (VK), Mediascout (MTS), Ozon ORD (Ozon), ORD-A (AmberData), First ORD (Vimpelcom), and ORD-Development Laboratory (Sber). Advertising Data Operators automate the advertising system processes, provided the necessary information is specified in the account.
How to mark advertising materials
Before placing advertisements, the advertiser or intermediary must provide information about the ads and the final customer to the Advertising Data Registration Authority (ORD).
The operator then transfers this data to the Unified Registry Information System (ERIR) and assigns each creative a unique identifier, known as a "token", necessary for subsequent publication. The ad is then published with the assigned token and a distinct "Advertising" label.
It is important to note that within 30 days after the end of each month, all participants in the chain, including advertisers, intermediaries (e.g., advertising agencies), and platforms or systems engaged in advertising, must submit reports to the ORD on creatives, chain participants, contracts, acts, and statistics broken down by individual ads and sites. If the agreement allows, all participants in the chain can entrust data transfer to an intermediary, such as an agency, service, or advertising system.
Why is advertising labeling important?
The introduction of an advertising labeling system is beneficial as it renews the advertising market, increases transparency, and allows for more effective control.
The creation of a Unified Register of advertisers allows the end advertiser to better understand the distribution of their advertising budgets, increasing transparency and enabling more informed decisions.
The Federal Antimonopoly Service benefits by quickly identifying and suppressing unfair advertising practices, promoting fair competition and consumer protection.
The Federal Tax Service gains more precise tools for controlling taxation in the field of advertising, contributing to compliance with tax obligations and increasing state budget revenues. Thus, advertising labeling enhances responsibility and effectiveness in the advertising sphere.
What types of advertising are subject to labeling requirements?
According to No. 347-FZ, Article 18, paragraph 4, mandatory labeling applies to the following types of digital advertising placed in Russia:
Contextual advertising Targeted advertising Display advertising Native advertising SEO advertising Posting on blogs and media
What is considered advertising according to the law?
To determine if information is considered advertising, refer to the relevant law. According to this law and explanations by the Federal Antimonopoly Service (FAS), advertising is information that:
Is distributed in various ways and means Is addressed to an indefinite circle of persons Draws attention to a product or brand Aims to promote the product on the market and arouse or maintain interest in it
Exceptions to labeling rules:
Social advertising on the Internet does not require labeling if placed through its own operator. Email newsletters and push notifications are not subject to these rules. TV and radio clips broadcast on the Internet without changes compared to the original source are exempt from labeling requirements.
Marking of advertising for foreign companies:
If a non-Russian company’s advertising targets users in Russia, it falls under the labeling requirements of No. 347-FZ, Article 18, paragraph 3. If the advertising is not displayed in Russia, labeling is not required.
Features of labeling for Russian organizations:
If a Russian organization places its advertising through Yandex but outside Russia, it is exempt from labeling requirements.
Push notifications and email newsletters:
Push notifications and email newsletters are not considered digital advertising by the FAS, and thus are not subject to the new rules.
Compliance with advertising labeling rules is crucial in Russia, and companies must carefully monitor their advertising activities to ensure adherence to established requirements.
How to register creatives in the ORD:
It is essential to complete the registration of creatives before publication. Retroactive tokens are only allowed for advertising that did not exist before publication, such as a live broadcast with a natural brand mention. In this case, the broadcast should be registered with the ORD after publication following the established rules.
Registering numerous creatives:
The ORD provides an API for the automated registration of a large number of ads.
Labeling dynamic creatives:
According to Roskomnadzor, for creatives that adapt to user characteristics during display, a unique identifier is required for each component – each unique target link.
Methods for labeling complex formats are being developed, and different operators may have their own methods. It is advisable to clarify this information with the chosen ORD.
What is an identifier for advertising?
An identifier, or token, is a unique alphanumeric code that identifies and tracks advertising elements. It contains information about an advertising campaign (ORD) and a unique label associated with specific advertising creativity within the campaign. The identifier is usually embedded in clickable links in the format https://site.ru/?erid=XXX or placed in the adChoice menu.
For advertising formats without links, the identifier is inserted in the text description or placed on top of an image or video clip, or at the beginning of the video in text form following the format "erid: XXX".
When should the ID be generated, and how long does it take?
The ID must be generated before the advertising campaign launch, except for formats that cannot be created before publication, like online broadcasts. Registration and token assignment should be instantaneous to avoid campaign launch delays. No additional moderation by Roskomnadzor is required.
Is an identifier needed for each creative, and what if there are many changes?
Yes, each creative needs its own token. If changes are made, the creative must be registered as new. In large online advertising systems, tokens for modified creatives are generated automatically.
Distinguishing advertising for agencies, freelancers, and individuals:
For individuals: If advertising for personal needs, specify your individual tax number (TIN). If you are not a Russian citizen and lack a TIN, use your phone number.
For freelancers and agencies: If you provide services without handling client payments, assist your client in correctly filling out data in their account.
For freelancers without an official legal structure: Create separate accounts for each client, providing information about the final customer.
For agencies making payments on behalf of clients: Transfer information about the final advertiser and their agreement with intermediaries. Provide your details, client details, and information about acts. Collect and submit data separately for each advertising platform.
Before launching campaigns, provide your contact details and contract information to the ORD. Monthly, submit reports on acts related to the original contract in specific accounts. Detailed information can be found in Yandex instructions for managing complex placement chains.
What to do if multiple advertisers are interested in the same material?
Co-branding: Draft separate contracts for each brand to define responsibilities and rights clearly.
Sponsorship: Focus on the main sponsor and establish appropriate agreements to clarify resource allocation and responsibilities.
Documenting advertising payments from different legal entities:
If various legal entities pay for advertising, consider it co-sponsorship. Follow these recommendations:
Budget splitting: Allocate impressions and expenses to different legal entities. Compliance with the subject: Ensure all participating entities have similar business activities. Necessary agreements: Formulate agreements to address joint participation and responsibilities. For payments from different clients (individual entrepreneurs, individuals, legal entities), create separate accounts to avoid confusion and tax authority issues.
Summary:
- Legal compliance: Adhering to advertising laws is essential to avoid fines and loss of customer trust.
- Professional expertise: Advertising professionals ensure effective and legally compliant materials.
- Positive image: Compliance builds a positive company image and fosters long-term relationships.
- Staying informed: Professionals keep you updated on regulatory changes.
- Success enhancement: Qualified specialists help avoid legal issues and improve advertising effectiveness, boosting business success. By following these guidelines, companies can ensure smooth operations, legal compliance, and effective advertising strategies.