Comparisons odious no more

The price and features of Telecom's internet products have been adversely highlighted this year in advertisements by rival Slingshot.

Now the communications giant has created its own comparative ad, pitting the offerings of its $10TXT mobile plan against one from competitor Vodafone.

With TSB Bank ads showing a smashed piggy bank (lampooning the high-profile BNZ Piggy Bank campaign) Telecom - the country's second biggest advertiser for the year to June 30 with expenditure of around $70 million by Nielsen Media Research figures - is one of the latest companies using advertising to compete head to head with its rivals.

Slingshot marketing manager Mark Callander says the confrontational nature of comparative advertising suits his company's style.

Slingshot initially toyed with a softer approach - using phrases such as "unlike other ISPs [internet service providers]" - but six months ago moved to more direct comparisons, naming Telecom's Xtra.

One of the company's TV advertisements, fronted by founder Annette Presley, uses bread to compare the price of internet services from Xtra and Slingshot.

Another uses bread to compare data caps.

Callander says the advertisements are factual and informative, compare like with like and add value to customers' decision-making.

"It's a complex market. The data cap advertisement highlights a key issue for the industry."

Callander says TV advertising played a major role in the growth of Slingshot's subscriber numbers, which rose from 4000 four years ago to around 140,000 now.

He says comparative advertising is not the right path for every company but can't see any down-side if the product is good.

He says Xtra has huge recognition, so naming the brand would not improve its exposure.

"We would probably think again if we were talking about naming another company fighting for tier two market share."

Callander says the Advertising Standards Authority's code for comparative advertising lays down the rules for this type of commercial and he recommends following it closely and getting legal advice.

The authority last year received 27 complaints involving the comparative advertising code.

Of the complaints, 17 were upheld or settled, two were upheld, two were deemed to have no grounds to proceed and six were withdrawn, resolved or adjourned.

Authority executive director Hilary Souter says most complaints were from one competitor against another.

Direct comparative advertising used to be more popular, says Souter, but the trend now is for companies to claim to be the the biggest or best.

"Years and years ago it used to be very common for the car [yards] to compare the different models of cars.

"That was a really common form of advertising. You don't see that as much these days, that very blatant, direct comparison is quite unusual - that price to price, that feature to feature."

The Television Commercials Approval Bureau, which approves content before screening, gets one or two ads a month with "elements" that compare the subject with competitors.

General manager Richard Prosser says the bureau often needs to ask for those sections to be rewritten to comply with the code.

Prosser says even ads that comply with legal requirements can turn away customers who want to support the underdog.

"In general, I don't think comparative ads are a good concept."