How the ad industry is adapting to the SDC mandate: Tackling key pain points

The self-declaration mandate, as per a directive by the Supreme Court of India, has sent the ad world into a tizzy. According to the Supreme Court order, no advertisement shall run on print, television, or digital media without a Self Declaration Certificate which is valid. The certificate, signed by an authorized representative of the advertising agency, is required to be submitted through either the Broadcast Seva Portal of the Ministry of Information and Broadcasting (MIB) for radio and TV ads or the Press Council of India’s portal for print and digital ads. Ad agencies must also declare that the self-declaration certificate abides by the norms of Journalistic Conduct of the Press Council of India and Rule 7 of the Cable Television Network Rules, 1994.

The representation is also required to submit their details such as email address, contact number, information about the ad, product or service description, the audio/ visual elements link, a PDF in case of print ads, and the product or service script. The date of publishing must also be informed by them in the declaration certificate. In the instance of ads that are certified by the Central Board of Film Certification, a certificate copy should be submitted with the self-declaration certificate.

As the ad industry goes about complying with the SDC mandate, several areas of concern have arisen. The ground realities of submitting the Self Declaration Certificate are beginning to hit the agencies – such as increase in workload and logistical challenges, ambiguity, possibility of unethical players exploiting loopholes. There are also concerns about the whole process adversely impacting creativity and innovation.

Adgully spoke to a cross-section of agency heads to understand the pain points, as well as how the ad industry is coping with fulfilling the requirements of the SDC mandate.

Bhavik Mehta, CEO, Think'in Birds Communications, said, “The recent Self-Declaration Certificate (SDC) mandate in India has created uncertainty and logistical challenges for advertising agencies. While its intent to promote responsible advertising is appreciated, the implementation poses several hurdles. Managing a high volume of creatives, each requiring an SDC has significantly increased turnaround time and strained resources. A 2023 study by the Advertising Club Bombay found that 62% of agencies expect the SDC to increase project timelines by at least 10%.”

He further pointed out, “Ambiguous guidelines on what constitutes a misleading claim lead to inconsistencies and delays during approvals. Different validation processes across media platforms add confusion and paperwork. The system’s reliance on advertisers’ honesty might allow unethical players to exploit loopholes, making agencies scapegoats if misleading claims slip through. This cautious approach stifles creativity and innovation, hampering rapid iteration and A/B testing. Integration challenges and scalability concerns further complicate the process. While the SDC mandate has its merits, addressing these pain points through clearer definitions, standardized formats, third-party verification, and technological solutions is crucial for smoother implementation.”

On the other hand, Naresh Gupta, Co-founder, Bang In The Middle, remarked, “In reality, the pain point is just the extra work. It slows down the release, but beyond that it’s not an issue. When the site works, it works well and there are no issues.”

However, according to Gupta, the issue is about having clarity on what all needs a SDC. “Does every search ad copy is needed to be certified? Or every post? Or post and its descriptor? There is ambiguity there, so we are being careful and advising our clients to get everything certified. In our case, the clients are doing the process themselves. It does slow down the process of release, but I suspect it’s early and things will get clear as we go along. I am of the opinion that this is the right thing to do and will benefit brands and agencies alike. This will build the missing consumer trust in advertising.”

As per Swati Rathi, Head of Marketing at Godrej Appliances, the main pain point is with respect to digital ads. She said: " With the plethora of digital ads being churned out by big brand, the added step slows things down. The process is slightly cumbersome – with the need to download – sign and again upload signed document. Digital AI driven dynamic campaigns also need clarity."

Rekha Motwani, AVP Media, #ARM worldwide said: "Given that the update is still in its early stages, the operational and logistical demands it places on advertisers, brands, and marketers are significant aspects to consider. The requirement to obtain SDC through designated authorised portals involves extensive documentation, and while we are still awaiting more details regarding the same, it adds another step that extends the ad release process. Furthermore, implementing it will necessitate having experts proficient with the new regulatory system, which might be a challenge initially. Lastly, concerns about the confidentiality of advertising materials and ideas uploaded to specific portals and platforms also present a risk to proprietary information and strategic plans. While these challenges are expected to persist during the initial months of implementation, we are optimistic that solutions will be found."

Yorick Pinto Sr. Creative Director, BC Web Wise commented: "The Supreme Court’s SDC mandate guidelines have a lot of ambiguity, especially with regard to what constitutes an ‘advertisement’ when it comes to digital marketing. Case in point - do social media posts done by brands come under the ambit of advertising? Another pain point is who is ultimately responsible for making the self-declaration - the agency or the client? Most agency folks are of the opinion that the client is best suited to take on the responsibility of making the SDC, as ultimately they are the ones who understand the product in detail."

According to Joydeep Sen, Thinking Director, Speaking Mirror, “The key pain points of the SDC mandate include an increased administrative workload, as agencies and advertisers now need to spend significantly more time on compliance-related tasks. There’s also a lot of confusion about the specific requirements and how to meet them, leading to inconsistencies in adherence. This complexity can create delays in campaign approvals and executions, negatively impacting the timeliness of ad releases. Additionally, smaller businesses with limited resources may struggle more with the additional burden, potentially widening the gap between them and larger companies.”

Parthiv Majmudar, Senior Vice President- Delivery, Operations & Client Engagement, Puretech Digital, observed, “The recent Supreme Court mandate for Submission of Self-declaration Certificates (SDC) is a significant step towards safeguarding consumer interests and promoting responsible marketing. However, it introduces new considerations for advertisers and agencies. Advertisers must now implement a content approval process that tracks every advertisement from creation to release, ensuring a record of the approving authorities. While this process is familiar in the insurance industry, it is relatively new to other sectors, leaving many advertisers facing unanswered operational challenges.”

Commenting on the areas of the SDC mandate lacking clarity and its impact on filling and submission, Bhavik Mehta pointed out the following areas:

Areas Lacking Clarity

Defining “Misleading Claims”: The mandate lacks a clear definition of what constitutes a misleading claim. This subjectivity creates confusion for agencies when filling out the SDCs. Uncertainties arise around claims related to product efficacy, price comparisons, and disclaimers.
Specificity for Different Industries: The mandate might not be specific enough for various sectors. For example, what constitutes a "misleading claim" in a financial advertisement might differ from one in a food product campaign. The lack of sector-specific guidelines makes it difficult for agencies to accurately assess the need for an SDC.
Burden of Proof: The mandate doesn't clarify who bears the burden of proof if an SDC is challenged. This ambiguity creates hesitation for agencies to submit SDCs, fearing rejection due to technicalities rather than actual misleading content.

Impact on Filling and Submission

Over-caution and Delays: Due to the lack of clarity, agencies often err on the side of caution and submit SDCs even for borderline cases. This adds to the workload and delays submissions for truly necessary cases.
Increased Scrutiny: The fear of vague interpretations leads to more rigorous internal reviews within agencies, further slowing down the process.
Inconsistent Approvals: The lack of standardization across platforms creates a situation where some platforms might reject SDCs for reasons others might accept. This inconsistency discourages timely submissions.
Incomplete Submissions: Uncertainties regarding the required level of detail in SDCs can lead to incomplete submissions, causing further delays and rework.

“Overall, the lack of clarity increases the time and resources needed to fill and submit SDCs. This creates a bottleneck for agencies managing multiple campaigns with tight deadlines,” Mehta noted.

Parthiv Majmudar felt that there are still many areas where the government needs to provide clarity, including the scope and ownership of the SDC, whether website content, organic search marketing content, and social media posts are included, its application to e-commerce portals and influencer endorsements, the handling of dynamic ad formats, and whether all adaptations of master creatives must be filed. “Clear guidelines from the ministry are necessary to address these concerns,” he stressed.

Joydeep Sen pointed out, “Several areas of the SDC mandate lack clarity, particularly around the exact documentation required and the specific standards that submissions need to meet. This ambiguity causes significant confusion, making it challenging for advertisers and agencies to ensure that their submissions are compliant. The inconsistent guidelines across different regions add another layer of complexity, further complicating the submission process. As a result, many organizations face delays and errors in their filings, which can lead to rejected submissions and further slow down the advertising process.”

Yorick Pinto pointed out: "As per the Supreme Court order, every Digital/Internet advertisement requires a self-declaration certificate. Now, there have been various concerns raised with regard to what constitutes a ‘Digital/Internet Advertisement’. Again: do social media posts done by brands constitute an advertisement?. Another important point to consider is that not every social post directly talks about the product. In many instances, the posts revolve around topical events such as festivals. Would these ‘topical posts’ require the submission of the SDC as well? Similarly, doubts are being raised about SDC for content created by social influencers. Again, the question is who should make the SDC for influencer driven content - the client, the agency or the influencer."

"There is a lot of discussion going on around many aspects of this new update, which we hope will get much clearer by July 9, especially with ASCI and MIB proactively hearing out the concerns of advertisers and marketers. At the moment, there needs to be more clarity around many areas, starting with the registration process. For instance, apart from the specific criteria and documentation requirements for different types of ads, one issue we've noticed for our clients with multiple product lines is whether there will be a central recording system for the registration process for all products. Since ad types and formats differ greatly based on the products; this is causing uncertainty about how to begin. Furthermore, affiliate marketing presents unique challenges as creatives and copies are often shared by the brands, but the selection and display for audiences are done automatically through platforms. Advertisers are keen to understand how these automated processes will stand parallel in compliance with the SDC requirements. The phased introduction of the mandate is creating uncertainty among brands, adding to the complications of the filing process and causing delays. However, MIB's recent discussions with advertisers show promise and the anticipated solutions being discussed seem hopeful, suggesting improvements and more clarity soon" said Rekha Motwani.

Swati Rathi emphasised: "Social media is relatively in the grey zone. The process of filling and submission is clear but the scope and coverage is not very clear. Further for digital ads – is it enough to get the main key visual submitted or does one need to submit every single adapt across languages and sizes. AI enabled search ads is another confusing area – given that the headlines and body copy are dynamic and managed smartly by the machine."

Hitarth Dadia, CEO and Partner, NOFILTR.GROUP, opined that one interesting way to view the self-declaration mandate is from the consumers’ and customers’ perspective. “Consider the recent events with crypto and betting apps. It’s beneficial to disclose that you are paid to talk about these brands, because while 80% of your audience might not buy it, the 20% who are interested deserve to know you’re endorsing the brand in exchange for payment. This transparency enhances your credibility and allows your audience to take the brand more seriously,” he maintained.

Dadia further added, “Some brands prefer subtle ads, while others want them to be obvious. Over time, we will naturally adjust to these preferences. Overall, this mandate will change influencer partnerships by reinforcing the importance of authenticity. Being honest about paid endorsements strengthens your relationship with your audience, as they appreciate your transparency and are glad you are earning from these associations. Creators have different approaches: some only promote products they genuinely love, while others are open to testing new ones. Regardless, transparency is key. This mandate is a positive step towards greater honesty and credibility in influencer marketing.”

Discussing about his experience since the SDC mandate became active, Bhavik Mehta said, “Since the Self-Declaration Certificate (SDC) mandate became active, my experience has involved several challenges and adjustments. The mandate aims to promote responsible advertising, but its implementation has increased workload and time constraints. Managing a high volume of creatives, each requiring an SDC has lengthened turnaround times and strained resources, impacting campaign deadlines. The reliance on self-declaration also poses accountability issues. Unethical players might exploit loopholes, and agencies could become scapegoats if misleading claims slip through. This cautious approach stifles creativity and innovation, as fear of scrutiny discourages creative risks and experimentation. Technological hurdles complicate integrating SDC workflows with existing systems. Overall, the SDC mandate has slowed the release of new ads, but as the industry adapts, efficiency is expected to improve.”

Shedding light on the potential for the mandate to encourage more long-term brand ambassador partnerships with established influencers for better compliance and brand alignment, Hitarth Dadia said, “I see significant potential in encouraging more long-term brand ambassadors. This approach fosters a deeper commitment from both creators and brands, benefiting both parties. Creators who resonate personally with the brand are more effective in promoting it, and long-term deals ensure that both sides are extremely conscientious about their partnership. This leads to relationships that go beyond the surface, focusing on what the brand represents and its values, as well as the creator's alignment with these principles. Long-term partnerships add substantial value to the industry. They facilitate greater transparency, authenticity, and honesty, especially in ambassador deals. Creators should be seen as experts on their distribution channels, understanding precisely what will work with their audience. While brands don’t have to follow everything a creator suggests, involving creators in marketing and advertising discussions can significantly shape campaign structures and enhance conversions. This collaborative approach is a forward-thinking strategy for the industry.”

"We did slow down briefly to take this into account. We have tried the process but its early days to comment on how the system will behave when volumes go up. The part of uploading signed certificate is cumbersome and should ideally be simplified - just uploading the generated document can represent self certification instead of the hassle of getting it signed. Also system speed should be very high to handle the volume of download and upload" said Swati Rathi.

Joydeep Sen added here, “Since the SDC mandate became active, our experience has been marked by a noticeable slowdown in the release of new ads. The filing process is time-consuming and requires meticulous attention to detail, which has created bottlenecks in our workflow. The need for thorough compliance checks before submission means that we have to allocate additional resources and time to each campaign, delaying their launch. This has been particularly challenging during peak advertising periods when timely releases are crucial.”

Rekha Motwani shared: "We have been helping our clients as much as we can by offering assistance with the documentation process and understanding it. However, since this mandate has come suddenly with many open-ended questions, brands, and advertisers are overwhelmed. Persistent queries regarding the type of signatory, required documentation, potential fines, and many other details have arisen. The additional time required for compliance checks and approvals has slowed the release of new ads, disrupting normal workflows and necessitating a re-evaluation of strategies to ensure timely and effective advertising despite the new regulatory environment. We are confident that with more information and clarity, the process will streamline and become smoother."

Elaborating on how NOFILTR.GROUP will ensure compliance with the mandate across all his influencer marketing campaigns, Hitarth Dadia said, “Ensuring compliance is straightforward if it’s a mandate that must be followed. We believe anything that enhances your authenticity and credibility is beneficial, and this mandate does just that. It is meant to be followed, and we've been clear in all our communications with creators that adhering to these mandates is essential. This strict approach is healthy for the industry in the long run.”

He further said, “There are multiple ways to look at it, and two key questions arise. Firstly, it will undoubtedly increase transparency and trust with the creator, but not necessarily with the brand. Many brands miss the mark here. If you're paying a creator to talk about your product or brand, it's crucial to set clear expectations. For instance, if you’re looking for conversions, platforms like Facebook Marketplace or digital ads might be more effective, as human testimonials primarily drive awareness. If your product is good, people will buy it based on its merits. I can’t force anyone to buy something just because I use it. However, if I am being authentic and transparent, and if consumers resonate with the product’s offerings, they will make a purchase. If not, they won’t. Our industry is only about six to seven years old, which is relatively young. While seven years might seem long, it is still a fledgling industry, lacking standardization. Brands paying creators to simply produce ads isn’t the best use of the creator’s credibility or creativity. It is more effective to have creators talk about your brand in a genuine way that resonates with their specific audience. Creators are experts on their audiences, while brands are experts on their products. Since you’re leveraging the creator’s credibility, it is wise to listen to their insights on what will work for their audience. If you just want to create an ad and upload it on social media, that’s fine, but it is a blunt instrument. A more effective approach is to allow the creator to convey your brand’s message in a way that makes sense to their audience.”

Hitarth Dadia pointed out, “Pre-campaign discussions, contracts, and related preparations have been in place for some time, even before these new mandates were introduced. The new mandates will ensure that more agencies adhere to these established protocols. Currently, the industry lacks consolidation, resulting in varied workflows across different agencies. These mandates will help standardize certain aspects of these workflows, which is ultimately a positive development for the industry as a whole.”

Parthiv Majmudar opined, “Agencies, as the final checkpoint before publication, must now integrate the SDC into their workflows. This means both advertisers and agencies will need to establish new processes to meet the government's mandate. With effective planning, there should be no reason for the go-to-market pace to slow down. However, this mandate requires both advertisers and agencies to invest in people and technology to manage the process efficiently and ensure adherence to compliance. A staggered approach to campaign rollouts may be required to mitigate these challenges.”

Commenting on how advertisers and agencies can navigate the new mandate to reduce disruptions in the advertising business, Joydeep Sen said, “To navigate the new mandate and reduce disruptions, advertisers and agencies should focus on streamlining their compliance processes. Developing standardized checklists and procedures can help ensure that all requirements are consistently met. Investing in training for staff to become familiar with the mandate's specifics can also improve efficiency. Leveraging automation tools and software to handle repetitive compliance tasks can save time and reduce the risk of human error. Additionally, maintaining open communication with regulatory bodies to seek clarifications when needed can help avoid misunderstandings and ensure smoother submissions.”

Yorick Pinto Sr said: "Since brands often work with multiple agencies, it’s best that they take on the onus of making the SDC. As mentioned earlier, we have advised our clients to speak to their legal teams and seek a legal perspective to address their doubts (if any). In the current social media workflow, it’s usually the client that shares a go-ahead with the agency before the latter goes ahead and publishes the creatives on social media platforms. Now, the client will have to perform an additional step of making the SDC for the creative and inform the agency about this, before the agency takes the creatives LIVE on social media/digital platforms."

"Given that the update is still in its early stages, the operational and logistical demands it places on advertisers, brands, and marketers are significant aspects to consider. The requirement to obtain SDC through designated authorised portals involves extensive documentation, and while we are still awaiting more details regarding the same, it adds another step that extends the ad release process. Furthermore, implementing it will necessitate having experts proficient with the new regulatory system, which might be a challenge initially. Lastly, concerns about the confidentiality of advertising materials and ideas uploaded to specific portals and platforms also present a risk to proprietary information and strategic plans. While these challenges are expected to persist during the initial months of implementation, we are optimistic that solutions will be found" said Rekha Motwani.

Swati Rathi pointed out: "For brands like Godrej, it is basic hygiene to ensure that our claims are well tested and backed up. So the self certification doesn’t really lead to any new steps in the backend – except the operational step of doing the certification itself. It does however mean accounting for an additional step and that time will have to be factored in. It would be good if there is a threshold spend level beyond which the self certification is asked for, and if the brands can submit a key visual for a campaign without having to repeat it for adapts – that’s not clear yet. For AI driven dynamic ads – a single note on the ads – with the various text options can be submitted instead of all the permutations and combinations. More clarity should evolve over time. Most importantly, the intent behind the activity is good but it would be worthwhile to evaluate if we can simplify the process and prioritise so as to focus on claims rather than ads."