Surrogate advertising

Last updated

Surrogate advertising is a form of advertising which is used to promote products which are banned or limited from advertising under government regulations, such as cigarettes and alcohol via advertising another product produced by the same company in order to raise brand awareness. A product in a fairly close category may be advertised, such as club soda or mineral water in the case of alcohol, or products in a completely different category, such as music CDs or playing cards. The intention is that when the brand name is mentioned, people will associate it with its main product. In India a large number of companies have used surrogate advertising, including Bacardi Blast music CD's, Bagpiper Club Soda, and Officers Choice playing cards, [1] [2] though the practice has since been banned under Central Consumer Protection Authority guidelines since June 2022. [3]

Contents

History

The origin of surrogate advertising can be traced to Britain, where housewives protested against liquor advertisements which appealed to their husbands. Companies circumvented the ban by instead promoting fruit juices and soda under the same brand names. [4]

In Canada, in 1988 tobacco product manufacturers were banned from directly advertising their products, but were permitted to continue sponsoring events, on condition that any promotional material reference only the corporate name of the manufacturer and not the brand names of their products. Tobacco companies got around this rule by incorporating new subsidiaries that matched the names of their key products, which in turn sponsored events such as the du Maurier Ltd. Open tennis tournament. The subsidiaries adopted the respective trade dresses of the products as their corporate colours, which were also used in event imagery, and on various promotional products like T-shirts and towels. [5] This form of marketing was eventually prohibited by the Canadian government effective October 1, 2003. [6]

Surrogate advertising in India

India has held a strong stance on the ban on advertising tobacco and liquor products since 1995. The ban was enforced after extensive research from the Indian Ministry of Health found that cigarettes and liquor have adverse effects on a person's health. In addition to this, the Indian government holds the notion that these products are especially harmful to a person's mental health, making them lazy and unmotivated. The combination of these factors led to an eventual ban on advertising these products throughout its media channels. [7]

However, the negative outlook on advertising these products can be traced back to 1975, when the Indian government introduced the Cigarette advertising act, forcing tobacco companies to display health warnings on the packaging and advertisements for cigarettes. The Indian government and health ministry continued to push for stronger restrictions on the advertising of tobacco and liquor until its eventual complete ban in 1995. However, the increase in population saw the sales of tobacco and liquor increase at an exponential rate. Therefore, companies were forced to seek alternative means of advertising, which led to the eventual creation of surrogate advertising in India. [7]

Some of the first evidence of surrogate advertising was seen by the Indian tobacco Company ‘Azad Bidi, which sponsored an international cricket match in India. [7] In India, extensive surveys resulted in similar findings which showed that liquor ads had a direct influence on consumers' purchasing behavior. Soon afterwards, the Cable TV Regulation Act banned liquor and cigarette advertisements; thus, India gradually adopted surrogate advertisements. [4]

Such companies usually either go for brand extension and promote the extended products, or promote certain products which might not be available in the market. The excessive pressure of the ban forced companies to focus more on brand building and thus liquor companies started sponsoring and hosting glamorous events, yet many others started distributing t-shirts, caps, key chains, and drinking glasses with the brand name displayed on these products. [8] [2]

Surrogate advertising mandates a requirement for the product being marketed to have a revenue model associated with it. [8] On 7 October 2022, the consumer affairs ministry of India issued notices to 6 alcohol and tobacco brands due to their surrogate advertising. Central Consumer Protection Authority (CCPA) has sent notices to Premium Black, Sterling Reserve, Seagram's Imperial Blue, Vimal Pan Masala, Rajnigandha Pan Masala and Kamala Pasand Pan Masala and told them to give answers on violating advertising guidelines. CCPA also asked them to discontinue these ads with immediate effect. [9]

Many Betting websites, and mobile apps do surrogate advertising in India. For example, they open similar name websites as apps to advertise their main betting company. Some examples include 1xBet running 1XNews, and 1XBat, extensively advertised as sporting blog and sportswear brands respectively. 1xBet signed Indian former cricketer Yuvraj Singh as their brand ambassador. Fair Play, and Betway also use similar type of tactics, to attract people to their main betting app, website. They are using national TV channels such as Star Sports etc. and YouTube channels, online media for advertising. But due to weak Indian laws these illegal betting apps are running and advertising in India. [10] [11]

An Example outside of India

Mission Winnow is owned by Phillip Morris International to get around the tobacco sponsorship ban, especially in Formula 1 for Scuderia Ferrari. [12]

An Indonesian football team is having an inquiry due to officials deem the sponsorship as a gambling company, whilst according to football team officials, it's registered under a news site. [13]

Effectiveness of surrogate advertisements

According to the inferences drawn from several surveys and interviews, 42 out of 50 people can understand the actual liquor or tobacco product being advertised. [14]

Surrogate advertisements do impact a consumer's buying decision as well. They also inform consumers about the leading liquor brands and thus promote sales. [8]

Current scenario

With the Indian government now enforcing a ban on surrogate advertisements, companies are turning to event sponsorship, event organising, corporate films and more and more innovative integrated marketing communications strategies, though surrogate advertising is still a common practice. [15]

Brand extensions, which are the expansion of a company towards products it did not sell previously, are allowed and somewhat common. The main difference between this practice and surrogate advertising is that surrogate advertising does not want to sell the supposed new product and it actually wants to promote a product whose advertising is prohibited. [16]

See also

Related Research Articles

<span class="mw-page-title-main">Gutka</span> Tobacco preparation chewed in South Asia

Gutka, ghutka, guṭkha or betel quid is a chewing tobacco preparation made of crushed areca nut, tobacco, catechu, paraffin wax, slaked lime and sweet or savory flavourings, in India, Pakistan, other Asian countries, and North America.

<span class="mw-page-title-main">Marlboro</span> Cigarette brand

Marlboro is an American brand of cigarettes owned and manufactured by Philip Morris USA within the United States and by Philip Morris International outside the US except Canada where the brand is owned and manufactured by Imperial Tobacco Canada. Marlboro's largest cigarette manufacturing plant is located in Richmond, Virginia.

Virginia Slims is an American brand of cigarettes owned by Altria. It is manufactured by Philip Morris USA and Philip Morris International.

Benson & Hedges is a British brand of cigarettes owned by American conglomerate Altria. Cigarettes under the Benson & Hedges name are manufactured worldwide by different companies such as Rothmans, Benson & Hedges, Philip Morris USA, British American Tobacco, or Japan Tobacco, depending on the region. In the UK, they are registered in Old Bond Street in London, and were manufactured in Lisnafillan, Ballymena, Northern Ireland, before production was moved to Eastern Europe in 2017.

<span class="mw-page-title-main">Silk Cut</span> British brand of cigarettes

Silk Cut is a British brand of cigarettes, currently owned and manufactured by Gallaher Group, a division of Japan Tobacco. The packaging is characterised by a distinctive stark white packet with the brand name in a purple, blue, red, silver, white or green square.

<span class="mw-page-title-main">L&M</span> American cigarette brand

L&M is an American brand of cigarettes, currently owned and manufactured by Altria and Philip Morris International. The name comes from the tobacco company founded in 1873 called Liggett & Myers, predecessor of today's Liggett Group, in which L&M was originally produced.

<span class="mw-page-title-main">Nicotine marketing</span> Marketing technique

Nicotine marketing is the marketing of nicotine-containing products or use. Traditionally, the tobacco industry markets cigarette smoking, but it is increasingly marketing other products, such as electronic cigarettes and heated tobacco products. Products are marketed through social media, stealth marketing, mass media, and sponsorship. Expenditures on nicotine marketing are in the tens of billions a year; in the US alone, spending was over US$1 million per hour in 2016; in 2003, per-capita marketing spending was $290 per adult smoker, or $45 per inhabitant. Nicotine marketing is increasingly regulated; some forms of nicotine advertising are banned in many countries. The World Health Organization recommends a complete tobacco advertising ban.

<span class="mw-page-title-main">Alcohol advertising</span> Promotion of alcoholic beverages

Alcohol advertising is the promotion of alcoholic beverages by alcohol producers through a variety of media. Along with nicotine advertising, alcohol advertising is one of the most highly regulated forms of marketing. Some or all forms of alcohol advertising are banned in some countries. There have been some important studies about alcohol advertising published, such as J.P. Nelson's in 2000.

<span class="mw-page-title-main">Philip Morris International</span> Multinational tobacco company

Philip Morris International Inc. (PMI) is an American multinational tobacco company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro. Philip Morris International is often referred to as one of the companies comprising Big Tobacco.

Doral is an American brand of cigarettes, currently owned and manufactured by the R.J. Reynolds Tobacco Company.

<span class="mw-page-title-main">Merit (cigarette)</span> American brand of cigarettes

Merit is an American brand of cigarettes, currently owned and manufactured by Philip Morris USA in the United States and Philip Morris International outside the United States.

<span class="mw-page-title-main">Cigarette smoking for weight loss</span> Weight control method

Cigarette smoking for weight loss is a weight control method whereby one consumes tobacco, often in the form of cigarettes, to decrease one's appetite. The practice dates to early knowledge of nicotine as an appetite suppressant.

Tobacco marketing targeting African-Americans refers to the practice of customizing tobacco products and advertising techniques specifically to African-American consumers. It is most commonly analyzed through the consumption of mentholated cigarettes, as it represents 47% of black adult smokers and 84% of adolescent black smokers.

<span class="mw-page-title-main">Smoking in India</span> History, culture, legality and prevalence of smoking in India

Smoking in India is one of the oldest industries and provides livelihood to more than five million people directly and indirectly. India is the second-largest producer of tobacco in the world. Smoking has been known since at least 2000 BC when cannabis was smoked and is first mentioned in the Atharvaveda. Fumigation (dhupa) and fire offerings (homa) are prescribed in the Ayurveda for medical purposes and have been practiced for at least 3,000 years while smoking, dhumrapana has been practiced for at least 2,000 years. Tobacco was introduced to India in the 17th century. It later merged with existing practices of smoking.

Advertisements in schools is a controversial issue that is debated in the United States. Naming rights of sports stadiums and fields, sponsorship of sports teams, placement of signage, vending machine product selection and placement, and free products that children can take home or keep at school are all prominent forms of advertisements in schools.

<span class="mw-page-title-main">Philip Morris (cigarette)</span> American cigarette brand

Philip Morris is an American brand of cigarettes, currently owned by Philip Morris International. Cigarettes are manufactured by the firm worldwide except in the US, where Philip Morris USA produces tobacco products.

<span class="mw-page-title-main">Regulation of nicotine marketing</span> Regulations regarding the advertising of nicotine-containing products

As nicotine is highly addictive, marketing nicotine-containing products is regulated in most jurisdictions. Regulations include bans and regulation of certain types of advertising, and requirements for counter-advertising of facts generally not included in ads. Regulation is circumvented using less-regulated media, such as Facebook, less-regulated nicotine delivery products, such as e-cigarettes, and less-regulated ad types, such as industry ads which claim to discourage nicotine addiction but seem, according to independent studies, to promote teen nicotine use.

<span class="mw-page-title-main">History of nicotine marketing</span>

The history of nicotine marketing stretches back centuries. Nicotine marketing has continually developed new techniques in response to historical circumstances, societal and technological change, and regulation. Counter marketing has also changed, in both message and commonness, over the decades, often in response to pro-nicotine marketing.

TV advertisements by country refers to how television advertisements vary in different countries and regions.

Electronic cigarettes are marketed to smoking and non-smoking men, women, and children as being safer than cigarettes. In the 2010s, large tobacco businesses accelerated their marketing spending on vape products, similar to the strategies traditional cigarette companies used in the 1950s and 1960s.

References

  1. Lamb, Charles W.; Hair, Joe F.; McDaniel, Carl. Essentials of Marketing. Cengage Learning. p. 76. ISBN   0538478349.
  2. 1 2 Anand, Tuhina (12 November 2009). "Marketers in India Evade Alcohol Ad Ban by Promoting Surrogate Products". Ad Age.
  3. "Explained: Govt's new guidelines banning surrogate ads". The Indian Express. 2022-06-16. Retrieved 2023-04-21.
  4. 1 2 Mehta, Pradeep S. (23 May 2003). "Surrogate advertising — Needed, a spirited attack". The Hindu Business Line (opinion). Archived from the original on 7 June 2003.
  5. Dewhirst, Timothy (1999). "Tobacco sponsorship is no laughing matter". Tobacco Control. 8 (1): 82–84. doi:10.1136/tc.8.1.82. PMC   1763920 . PMID   10465823 . Retrieved May 13, 2023.
  6. Dunsmuir, Mollie (December 1998). "Tobacco and Health: Government Responses – Federal Regulation and Regulatory Action" . Retrieved May 13, 2023.
  7. 1 2 3 Singh, Chandrashekhar (2015). "Evaluation of Surrogate Advertising and Its Legal Neasures With Special Reference to India". Management Insight. 11 (103–107).
  8. 1 2 3 "Surrogate Advertising In India: Permissible Or Not | Naik Naik & Company". naiknaik.com.
  9. "CCPA issues notices to 6 alcohol and tobacco brands over surrogate advertising". 7 October 2022.
  10. "Blacklisted betting site makes backdoor entry in India with Asia Cup". www.deccanherald.com. 12 September 2022.
  11. "Second alert in 4 months: Penalty for betting ads on TV, OTT, says Govt". www.indianexpress.com. 4 October 2022.
  12. "F1: Mission Winnow removed from 2023 Ferrari partner list". Scuderia Fans. 2023-02-09. Retrieved 2023-05-30.
  13. "Persikabo berkilah kontrak sponsor dengan portal sbotop.net bukan rumah judi". ANTARA News Jawa Barat. Antara News Agency. Retrieved 2023-05-30.
  14. "Has Delhi CM Resorted to Surrogate Ads on TV for Odd-Even Scheme?". www.adageindia.in.
  15. "The art of surrogate advertising | Best Media Info, News and Analysis on Indian Advertising, Marketing and Media Industry". www.bestmediainfo.com.
  16. Alves, Danilo Scramin (2019). "A Legal Analysis of Surrogate Advertising and ITS Accountability in Brazil in the Consumer Society Paradigm". Revista Jurídica. 02 (55): 106–132. doi: 10.21902/revistajur.2316-753X.v2i55.3386 . S2CID   219300811.