Category: Marketing

  • U.K. Bans Nordic Spirit Video Game Ad

    U.K. Bans Nordic Spirit Video Game Ad

    Photo: JTI

    The U.K. Advertising Standards Authority (ASA) has banned a Nordic Spirit nicotine pouch ad for implying that the product has a mood-altering and stimulant effect, reports The Evening Standard.

    The ad appeared on Crunchyroll, an anime streaming service, and depicted people using Gallaher’s Nordic Spirit pouches as they got ready to play an online video game. The players reacted enthusiastically to the game while online text read, “A new nicotine experience,” “great flavors,” “pocket-sized convenience” and “never miss a moment.”

    There was small text on the screen throughout the advertisement stating that the product was for those 18-plus, that it contained nicotine and that nicotine is addictive.

    Gallaher said the ad did not intend to target minors; according to the company, 85 percent of Crunchyroll’s audience was 18 years or older. The streaming service requires users to confirm that they are at least 16 years old.

    The ASA found that the ad did not breach rules in respect of the ad being appropriately targeted to its audience. However, it did find that the product was not advertised responsibly.

    The video ad was designed purely to emphasize the hands-free convenience of Nordic Spirit for existing adult nicotine users as an alternative to smoking cigarettes.

    JTI

    “We considered that the combination of the depiction of players using the product as they were about to start the game, the sense of anticipation created by music building to a drop and their reactions of excitement associated the use of the product with the game,” the ASA said. “These all implied that it had a mood-altering and stimulant effect, which would enhance enjoyment and gameplay. In the context of an ad for a product that contained nicotine, we considered that was irresponsible and breached the code.”

    “We are disappointed with the finding that our advert for Nordic Spirit suggested that using the product made video gaming more fun and enjoyable and that the advert implied a mood-altering or stimulant effect,” said a spokesperson for Gallaher’s parent company, JTI. “The video ad was designed purely to emphasize the hands-free convenience of Nordic Spirit for existing adult nicotine users as an alternative to smoking cigarettes or using other nicotine-containing products.”

    “While we maintain that at no point did our advert convey any mood-altering or stimulant effect, the ASA’s decision does provide some useful and clearer guidance to help ensure that ads for nicotine-containing products meet the ASA’s requirements.”

  • Decent Exposure

    Decent Exposure

    Illustrations: Pavel Losevsky and Milkos | Dreamstime

    Powered by new data-driven planning platforms, “out of home” is emerging as the media channel of choice for legal and effective tobacco advertising.

    By Shabnam Irilian

    In the advertising world, there is likely no more heavily regulated industry than tobacco, where restrictions are onerous and plentiful. The advertising of traditional tobacco products has been banned from U.S. radio and television airwaves since the 1970s. Online advertising opportunities are minimal, with the most popular destinations and social media platforms—Google and Facebook, to name just two—also banning tobacco ads. And while vapor products and some newer alternative tobacco products do not always fall under these bans, there is a general reluctance among media owners and platforms to allow advertising for fear of a public or legal response.

    With so few channels at their disposal, tobacco and nicotine brands often turn to “out of home” (OOH) advertising, which has long held strong appeal for companies operating within industries where marketing activities are restricted. They turn to OOH not just because of its availability but because of its ability to reach both larger mass audiences and smaller targeted ones as well. OOH is typically more cost effective, delivering greater cost per mille (the amount an advertiser pays a website per 1,000 views), which is ideal for emerging alternative tobacco brands that may not have deep pockets when it comes to advertising spend. Perhaps most importantly, OOH has a proven track record when it comes to influencing consumer attitudes and behaviors and spurring action.

    But advertising using OOH does not come without challenges. For one thing, the industry itself is highly fragmented with multiple forms of inventory owned by a myriad of different media owners. There are currently 1.5 million screens and displays in the United States. Navigating an inventory of this size and dealing with the various owners is enough of a challenge for any brand, let alone one in a restricted category.

    And speaking of restrictions, while OOH is certainly more available to tobacco and nicotine advertisers than other channels, brands and their agency partners must be aware of and operate within compliance of complex laws that govern where ads can be placed and content that can be displayed. These laws can vary dramatically from one state, city or municipality to the next, and they change with great frequency.

    With all this in mind, the question turns to how tobacco and nicotine brands can leverage the OOH channel in the most effective, and legal, way. Here are some tips:

    Combine compliance with sensitivity

    The emergence of data-driven platforms has improved the OOH planning and buying process for all brands. For tobacco and nicotine brands, optimized platforms help identify compliant inventory, making the planning process even easier and faster. That said, just because you can do something doesn’t necessarily mean you should. Even if a particular screen is approved and legal for tobacco advertising, consider the environment and use common sense to determine whether your ad might be off-putting or create more problems for your brand than new customers gained.  

    Confront issues as a team with shared responsibility

    As mentioned, the market for U.S. OOH inventory is highly fragmented, and the laws and restrictions governing advertising for tobacco companies are complex. Even with the best technologies and tools, it’s not impossible for problems to arise. Checking the box on compliant inventory during the planning process is not enough. Monitoring must and should continue throughout the duration of campaigns. Conduct drive-arounds where possible to visually confirm that your ads are properly placed within the context of the community. And work in tandem with your partners, from planners to buyers to creatives, to create an environment of shared accountability so that any problems that might arise can be addressed quickly and collaboratively.

    Capitalize on all that specialists can offer

    These days, it’s not uncommon to see stories of billboards being purchased by regular, everyday citizens for any number of reasons—marriage proposals, fundraising, congratulatory messages, etc. Yes, anyone can call a media owner and buy a billboard these days. But for brands that want to take a more strategic approach and drive real value from their investments in OOH, working with agency partners is the more advisable route, even more so for tobacco and nicotine brands that not only need to rely on the experience and expertise of industry experts but can benefit from the existing relationships agencies have with media owners to access premium inventory and favorable pricing. Plus, not only are OOH specialists equipped with the ability to select the compliant and legal inventory—they also have the data, tools and technology to overlay those selections with the inventory that will succeed in delivering the right message to the right audience at the right time, driving business outcomes.

    Think of OOH as strategic

    Finally, don’t think of OOH as the “nice-to-have” add-on to your broader strategic marketing efforts. OOH works well in concert with complementary campaigns and, when integrated with mobile and social media, can amplify the reach and value of your marketing efforts. Ensure that your OOH partners are involved in your strategic planning discussions at the very start of the process. 

    Shabnam Irilian is senior vice president of business operations for Talon Outdoor, an OOH agency delivering creative, technology-led and integrated OOH communications.
  • Beyond Tobacco Batch Sells Out in 72 Hours

    Beyond Tobacco Batch Sells Out in 72 Hours

    Taat CEO Setti Coscarella
    Photo: Taat Lifestyle and Wellness

    A test market batch of Beyond Tobacco cigarettes sold out within 72 hours after the selected stores began selling the products, according to its manufacturer, Taat Lifestyle and Wellness.
     
    In July 2020, Taat undertook a test production run for Beyond Tobacco cigarettes with its manufacturing partner. An allocation of the batch from this test production run was reserved for market research purposes, with the balance to be offered to select retail stores in Nevada, USA.
     
    Less than 72 hours after the selected stores began selling Beyond Tobacco cigarettes, their inventories had sold out at price points aligned with the company’s planned pricing strategy. According to Taat, purchasers provided positive feedback about Beyond Tobacco cigarettes and expressed enthusiasm about the planned product launch in the fourth quarter of 2020.
     
    “One advantage we have is that Beyond Tobacco cigarettes are a completely intuitive product for anybody who smokes tobacco. There’s nothing to learn and nothing to adapt to—it’s something you use exactly the same way you would use a tobacco cigarette,” said Taat CEO Setti Coscarella.
     
    “The product essentially sells itself because of this, which I believe is precisely why the Nevada retailers who participated in the second iteration of retail market testing managed to sell out of Beyond Tobacco cigarettes in less than 72 hours despite being a new product with no advertising or promotion done to date.”

  • U.K. Tobacco Sales Down After Plain Packs

    U.K. Tobacco Sales Down After Plain Packs

    Photo: Marc Bruxelle | Dreamstime.com

    Cigarette sales have fallen by about 20 million a month in the U.K. since plain packaging rules have been in effect, reports The Guardian, citing a new study.

    “The underlying rate of decline in tobacco sales almost doubled after these policies were implemented,” said Anna Gilmore, director of the Tobacco Control Research Group (TCRG).

    Before plain packaging rules were implemented in 2017, cigarette sales were falling by about 12 million a month, according to the TCRG.

    “Governments around the world considering plain packaging can be reassured that this policy works and that the real reason the industry opposes this legislation so vehemently is because it threatens its profitability,” said Gilmore. “With coronavirus already posing a threat to tobacco company sales and plain packaging of tobacco taking off in other jurisdictions, our findings are more bad news for tobacco companies.”

    The tobacco industry’s net revenue fell 13 percent, from £231 million ($291.9 million) to £198 million a month, after the implementation of the plain packaging rules.

    The study was funded by Cancer Research U.K. and the British Heart Foundation.

  • Senate Bill Bans Online E-Cig Sales to Minors

    Senate Bill Bans Online E-Cig Sales to Minors

    Photo: lexphumirat from Pixabay

    The U.S. Senate on July 1 approved a bill to stop internet sales of vapor products to minors, reports NASC.

    Passed unanimously, the Preventing Online Sales of E-Cigarettes to Children Act seeks to close the online loophole of e-cigarette sales to minors by applying the same measures that are required when traditional cigarettes are purchased online. The House passed its version of the bill last year.

    The legislation would require online sellers of e-cigarettes to ensure the carrier verifies the age of the recipient upon delivery. It would also require online sellers to collect and remit the appropriate state and local taxes.

    These measures are already in place for cigarettes and smokeless tobacco products purchased over the internet because of the Prevent All Cigarette Trafficking (PACT) Act, which Congress enacted in 2010. E-e-cigarettes were uncommon in the marketplace when the law was passed.

    The internet is the most common retail source of e-cigarettes to minors, according to a study published in 2018 by the American Journal of Health Promotion.

    “According to a report last year, more than a quarter of all high school students and one in 10 middle school students had vaped in the previous 30 days, despite the fact that they are underage and should not have legally been able to buy e-cigarettes,” said Senator Feinstein, one of the sponsors of the Senate bill.

    “Age verification for purchasing e-cigarettes online remains practically nonexistent, and it’s time we start regulating these products at least as much as we do traditional cigarettes.”

    Last October, the House passed its version of the same bill on suspension. Given that the Senate bill is slightly different than the House version, the House will need to pass the Senate’s version before it can become law.

  • Germany to Curb Tobacco Advertising

    Germany to Curb Tobacco Advertising

    Photo: Rene Van Den Berg | Dreamstime.com

    The German government plans to limit the outdoor advertising of tobacco products, reports DW. Germany is the only EU state that still allows tobacco companies to broadly advertise their products.

    Under the new rules, advertising of tobacco products will be authorized only in tobacco shops. In cinemas, commercials for tobacco products may be shown only in films aimed at adult (18+) audiences. Distribution of free tobacco samples will also be prohibited outside of specialist stores.

    The restrictions on outdoor advertising will be implemented in stages. They will apply from Jan. 1, 2022, for tobacco products, from Jan. 1, 2023, for tobacco-heating devices and from Jan. 1, 2024, for e-cigarettes. The new rules for tobacco advertising in movie theaters are expected to come into force at the turn of the year.

    Anti-smoking activists have long pushed for tighter restrictions on advertising but met with fierce opposition. An attempt to pass similar legislation in 2016 failed to garner the required support. After resisting tighter laws for many years, Chancellor Angela Merkel’s CDU/CSU coalition changed its position at the end of 2019.

    Tobacco companies expressed concern about the new legislation. Philip Morris International Managing Director Claudia Oeking suggested that, without advertising, it would be difficult to inform smokers about less-harmful products.

    The tobacco industry spent an estimated €100 million ($112 million) a year on cinema and outdoor advertising in Germany.

  • BAT Launches E-cigarette Subscription Services

    BAT Launches E-cigarette Subscription Services

    Photo: British American Tobacco

    British American Tobacco (BAT) has launched personalized subscription services for its Vuse and Vype e-cigarette brands. With a variety of plans to choose from, vapers can sign up for monthly deliveries that offer “value, convenience and personalization.”

    In the United Kingdom, BAT has introduced two monthly subscription services focusing on its award-winning Vype ePen3 and Vype ePod.

    Each subscription plan includes a Vype ePen3 or Vype ePod every three months with a 25 percent saving on a three-month plan or a 33 percent saving on a six-month plan, both with no delivery charges. Each plan requires a minimum order of six packs per month. 

    In the United States, BAT continues to offer its popular Vuse Alto pod subscription service that includes a 10 percent discount on pods and free delivery.

  • Longtime Holdout Germany Plans Ad Ban

    Longtime Holdout Germany Plans Ad Ban

    Photo: Tobacco Reporter archive

    The German government on May 22 announced plans to impose a complete tobacco product advertising ban that would go into effect from January 2022.

    Although it is banned for the media, tobacco product advertising is still allowed at point-of-sale and in cinemas.

    The proposed new law, which will be discussed in parliament next week, would also prohibit cigarette sampling and ban vapor product advertising beginning in 2024.

    Consumer protection minister Julia Klockner said, “Limiting tobacco advertising on the street and in cinemas is long overdue.

    Above all, we have to protect young people so that ideally they don’t even start smoking.”