VOX POP: How can new web ad models and ideas be regulated?

Google's launch of its AdWords sponsored links programme in the UK and Europe and the rise in popularity of paid-for keyword search engine entries highlight the difficulties regulators are facing in defining online advertising.

Not only must the formats pass muster with advertising bodies such as the Advertising Standards Association (ASA), Commission for Advertising Practice (CAP) and the Interactive Advertising Bureau (IAB), but also industry-specific regulators, such as alcoholic drinks watchdog The Portman Group, the Medicines Control Agency and the Financial Services Authority. So what is online advertising and how should it be regulated?

SHERYL SANDBERG DIRECTOR, ADWORDS, SALES AND OPERATIONS, GOOGLE

Google is committed to free speech. We provide more free access to information than anyone else on the web. AdWords is designed to provide revenue to keep the free services going.

It's one of the funders of free speech. We don't let people sell narcotics, illegal products or products that promote illegal products. This includes tobacco, alcohol, drugs and guns.

We don't have specific standards as such, but ads are split into three categories: family-safe, non-family-safe and adult sexual. Pornography comes under the third category, but we don't accept violent or child porn, only material relating to consensual activity between adults. And we only serve content like that to specific adult searches. The search term has to have more than 20 per cent of adult content to be listed in 'adult sexual', and a safe-search filter can be used. We won't accept sexual ads that involve hatred of one person against another.

Our goal is to make ads as relevant as possible. We also won't let our ad programme link to sites with pop-up ads or no enabled 'back' button.

DANNY MEADOWS-KLUE CHAIRMAN AND CHIEF EXECUTIVE, IAB

New media is the fastest-moving of markets; it crosses geographies, throws up new technologies and exists in a world in which consumer attitudes move at great pace.

All non-broadcast media should be regulated by the ASA and CAP, of which the IAB is a member. There's no need for new regulatory regimes; we need to take best practice and make sure existing regulators implement it.

We take self-regulation very seriously and when the IAB first formed in the UK, I began working with the CAP to find ways to extend their practices to cover new media.

There are clear rules and IAB members are regularly briefed. Net advertising is already covered: legal, honest and truthful applies to UK internet ads - no question.

There's also a host of regulations covering areas such as distance selling, contract law, data protection and consumer rights.

GUY PARKER DIRECTOR OF ADVERTISING PRACTICE, ASA, AND SECRETARY, CAP

No one ever said the regulatory landscape was simple - and it isn't.

The British Codes of Advertising and Sales Promotion cover all forms of non-broadcast advertising that are paid for.

The CAP originates codes, while the ASA administers them. It is likely that the code will apply to Google AdWords. Sponsored links on Google are clearly headed and it's clear that companies have paid extra to highlight these links. But the only way we would know for definite would be if someone complains.

As regards paid-for listings, I wouldn't like to comment on our course of action at this stage, but it's quite possible we'd look to apply the code to a top directory link that has been paid for.

The only body that can determine whether these forms of promotion come under their jurisdiction is the ASA council. We hope to publish a single code at the start of next year that will explain, among other things, new-media formats in more detail.

JIM BRIGDEN SALES DIRECTOR, OVERTURE

Nobody forces consumers to click on our paid-for results, and these results have to be relevant to our consumers.

We police the relevance of all our advertisers. Every keyword is checked by a human being and re-checked regularly.

We don't touch any sectors that are illegal, such as guns, illegal software, escort agencies, prostitutes or drugs. We follow UK case law and err on the side of caution, because it's in the interests of our advertisers and consumers.

There are still some grey areas where there isn't relevant case law.

In cases like these, we consider the relevance. The internet isn't immune from the laws of the land. And regulatory bodies should be looking at these grey areas more closely. What we do well is to make sure our database is localised.