The cellular networks have warned that they will get tough on wireless application service provider (WASP) advertising in future, in a bid to ensure that misleading advertising does not damage the industry.
Both Vodacom and MTN have highlighted the issue after a Teljoy advertisement was placed in the Sunday Times, advertising mobile games and other content for cellphones.
The advert stated in the fine print at the bottom that mobile games cost R20 and that other downloads are charged at R3.00. However, the advert did not make consumers aware that certain downloads would require a second SMS from the user stating their phone model. The user would then pay R6 for the content.
The advert got an immediate response from Vodacom who issued a communiqu'e to all WASPs reminding them that the price of content has to be clearly stated in advertising and the advert cannot be misleading. Vodacom also contacted Teljoy directly about the advert.
Ron Goldstein, Teljoy Cellular marketing director says Teljoy is in discussion with its advertising agency and the price for downloads will be clearly stipulated.
"We will also examine the positioning of the price in the fine print at the bottom of the advert and discuss it with the networks in relation to their stipulations on advertising," he says.
Goldstein says the revised advert will be run in future issues of the Sunday Times.
The networks stance
Vodacom also said in the communiqu'e that it would hold revenue share back from any WASP if its advertising does not clearly state the full cost of the service or if the advert is otherwise misleading. The rule comes into effect in 30 days time.
Bernice Samuels, MTN general manager of brands, says advertisements that are misleading are damaging to all network operators and WASPs that are making use of the network operators to deliver content such as ring tones and logos.
"Misleading advertisements limit subscriber loyalty and trust. Subscribers will also incorrectly associate these high costs with the network operators, and not the actual content providers, ultimately resulting in a limited use of these services. Activity of this nature is counter-productive and does little for business growth."
Samuels says companies that make use of the MTN network are bound by a code of conduct and MTN has the right to hold back revenue share or terminate their services.
One step further
However, Gavin Penkin, Exact Mobile director of portal and entertainment, called on the networks to make the rules more specific.
"While we welcome the networks` encouragement to WASPs to advertise clearly and concisely, we believe that the networks need to make their code of conduct for WASPs more specific.
"Saying the price of content needs to be stated "clearly" is still not specific enough because companies could place it in the fine print and consumers are not always going to read that. They may feel disgruntled when they become aware of what they are paying for content and could be wary of sending further SMS to these services," he says.
Penkin also called on the networks to insist that the price for the service is placed next to the short code number.
"Some WASPs have more than one short code number which provide content at different prices. If the price is not directly next to the specific short code, users may become confused as to how much they are actually paying."
Penkin says it is in the interest of everyone that there are greater controls on advertising and the interests of the customer are protected.
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