Why the HFSS ad ban could be a sales blessing in disguise

The advertising and retailing industries have been more focused on Christmas ads than normal this festive season, as they have been monitoring how the ban on promoting products that are high in fat, salt and sugar (HFSS) is playing out.

Although the law only officially came into effect this week (5 January), most retailers and fmcg producers adopted the massive change to advertising rules in October, opting not to run product-focused campaigns for ‘less healthy food’ before the 9pm watershed throughout the whole Christmas period.

Illustrating just how profound the new rules are, The Grocer reported earlier this year that eight in 10 of 2024’s top Christmas ads would not have been allowed under the new rules. Hence, this festive season has seen wide shots of party spreads and supermarket aisles rather than close-ups on festive treats or price promotions on products that fall under the HFSS restrictions.

This is the culmination of a year where all parties involved have been busy strategically deciding what to do when they are still tasked with fuelling growth, but cannot advertise key products online or on TV before the 9pm watershed.

Amid all the concern and head-scratching, though, there is the distinct possibility that everyone has been asking the wrong question. Or, at least, by focusing on the negative implications, missing a more positive take. Could the HFSS restrictions actually be good news?

More bang for their buck

The reality is, when you look at the numbers, the HFSS ad rules could well turn out to be a blessing in disguise. The reason why has been evident all along: we just all needed to ask the right question and frame strategy around a more positive mindset. By concentrating on the impact on product advertising, many have forgotten the impact of focusing instead on brand advertising, which is not subject to the ban.

Circana figures track retail sales against live advertising campaigns to identify sales uplifts and ascertain which tactics are working well. When we looked at confectionery advertising, we discovered a startling truth. Brand advertising is significantly more effective, offering up to 66% better ROI than product advertising.

By focusing on advertising brands, rather than the products themselves, companies stand to get way more bang for their advertising buck.

The reason is simple. When a specific product is the sole focus of an advertising campaign, sales will lift. However, when the generic brand behind that product is advertised, there is also a lift in sub-categories.

Most chocolate bars, for example, will have several options, such as original, orange and salted caramel, among many others. When the brand behind those derivatives is advertised, we see lifts across the range, not just the one version that would otherwise have been seen in a product advert.

Though the concern we’ve seen this year is completely understandable, when such a fundamental change to advertising rules, it’s likely companies will find ROI shoot up as they double down on brand advertising. For those still wondering about product advertising, there is of course, still the option of advertising after 9pm and at any time on outdoor, which (alongside radio) is not subject to the ban.

Milan Jotangia is business development manager at Circana