Tag: advertising

  • Congress to Close E-Cigarette Ad Loophole

    Congress to Close E-Cigarette Ad Loophole

    Image: higyou | Adobe Stock

    The U.S. Congress wants to end a legislative provision that allows manufacturers to claim federal tax deductions for the cost of advertising for e-cigarettes and tobacco products. That includes the ads they buy on the radio.

    Senators Jeanne Shaheen and Richard Blumenthal have reintroduced the No Tax Subsidies for E-Cigarette and Tobacco Ads Act (S. 464), which if passed would not make the direct-to-consumer ads illegal but would end the ability for companies to take tax deductions for advertising expenses related to vaping and other tobacco products, according to Insider Radio.

    “Tax breaks for tobacco and e-cigarette giants allow the industry to profit from its manipulative marketing,” Blumenthal said. “Our legislation ends these write-offs to protect kids and other consumers from being lured into lifetimes of addiction.”

    Radio and television advertising for traditional tobacco products has been banned under federal law since January 1971, and certain other forms of tobacco advertising are restricted under the 1998 Tobacco Master Settlement Agreement. However, none of these restrictions apply to e-cigarettes. 

  • Scotland May Consider Display Ban for Vapes

    Scotland May Consider Display Ban for Vapes

    Credit: Paolo Giovanni

    A lawmaker in Scotland wants to ban the public display of e-cigarettes in retail shops. Scottish Greens MSP Gillian Mackay wants retailers to treat them in the same way as cigarettes and hide them from view.

    “This is beyond the days of smoking behind the bike sheds—this is a multi-million industry leading the nation’s health down a path to disaster,” Mackay said. “It is a ticking time bomb, and, until we know more, that’s not a risk I or anyone else should be asked to accept.”

    She has written to shops and vape manufacturers ahead of taking her campaign to the Scottish Parliament, according to the Daily Record.

    Mackay, the Green Party’s health spokesman, said there is growing concern that the number of underage people being attracted by “deliberately sweet-toothed tactics” to market products is spiraling.

    She is calling on retailers to lead by example by writing to them urging that they hide the products from view.

  • Push to Close Tobacco Advertising ‘Loophole’

    Push to Close Tobacco Advertising ‘Loophole’

    Image: RomanR | Adobe Stock

    U.S. Senators Jeanne Shaheen and Richard Blumenthal reintroduced the No Tax Subsidies for E-Cigarette and Tobacco Ads Act, which would end a tax provision that allows manufacturers to claim federal tax deductions for the cost of advertising for e-cigarettes and tobacco products, according to Shaheen’s website. Senators Brown, Reed, Durbin, Van Hollen and Merkley also joined in reintroducing the bill.

    “E-cigarettes are fueling a public health crisis—particularly among teenagers. E-cigarette and Big Tobacco companies must be held responsible for deliberately advertising these dangerous products to youth,” said Shaheen. “It’s outrageous that a tax loophole allows companies to write off the costs of their ads, having taxpayers foot the bill and subsidize the advertising of harmful products. That’s why I’m reintroducing legislation to close this loophole and hold e-cigarette companies accountable for their harmful marketing practices.”

    “Old regulatory loopholes are helping Big Tobacco addict more Americans to lethal products,” said Blumenthal. “This bill will close a gaping tax loophole, putting an end to Big Tobacco’s tax write-offs of dangerous ads and preventing young people from starting up a deadly addiction.”

    The bill also bars tax deductions for advertising expenses related to tobacco cigarettes, cigars, snuff, chewing tobacco, pipe tobacco and roll-your-own tobacco.

  • German Upper House OKs Ad Restrictions

    German Upper House OKs Ad Restrictions

    Photo: Tuayai |Dreamstime

    Germany’s Upper House has approved legislation that will further restrict tobacco advertising, according to Xinhua.

    The legislation will begin to take effect in 2021: Movies will not be allowed to advertise tobacco products and the distribution of free samples outside specialty stores will not be allowed. Beginning in 2022, outdoor advertising for conventional tobacco products will be banned. From 2023, the ban will include tobacco heaters, and in 2024, the ban will include e-cigarettes.

    Germany is currently the only European Union country to still allow tobacco advertising in public spaces.

    “Many studies prove that tobacco advertising increases the attractiveness of tobacco products, in particular among children and young people,” said Klaus Reinhardt, president of the German Medical Association.

     The ban is aimed at protecting public health and the health of young people.

  • 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.
  • 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.

  • Strict laws to limit tobacco ads in China

    Lawmakers in China may introduce tough new restrictions on tobacco advertisements, according to a story in the China Daily. A draft revision to the country’s 20-year-old Advertisements Law will be voted upon tomorrow; the revision was discussed Tuesday at the bimonthly session of the Standing Committee of the National People’s Congress and is likely to be ratified.

    The draft indicates that no tobacco advertisements should be displayed in public places or published in mass media outlets. While many lawmakers advocate a complete ban on tobacco advertisements in China and maintain that public health should be the country’s top priority, others recognize that the production of tobacco provides a significant source of income for farmers who reside in areas that are not suitable for other types of agriculture.

    China signed the World Health Organization’s Framework Convention on Tobacco Control in 2003.