So it's finally happened! Consumer tobacco advertising has gone up in smoke, been stubbed out.
Now pondering a very different world in the post-advertising ban era, cigarette and cigar manufacturers have put on a brave face in public but there will almost certainly have been many furrowed brows in the boardroom. Meanwhile, the annoyance is compounded by the knowledge that the health lobby is drawing in a satisfactory breath, revelling in their landmark victory against the likes of Imperial, Gallaher, Rothmans and co. The worry now, at least for the trade, is that campaigners won't stop until they force the implementation of draconian measures which have already been taken up in other parts of the world. Examples include the abolition of any in-store point of sale material and even the complete withdrawal of tobacco brands from the view of consumers.
But turning back to the immediate problem at hand, does the advertising ban matter? And how will the tobacco giants peddle their wares now?
Attention is immediately turning to what will be allowed instore, although guidelines from the Department of Health seem remarkably slow in coming. With mainstream advertising banned (ads targeted at retailers in business titles such as The Grocer will still be allowed), the burning question now is how the tobacco giants will get their message across to consumers and how much they will be allowed to get away with in terms of brand displays inside grocers and newsagents. Also, it doesn't take a marketing genius to predict what the potential rewards could be for retailers. After all, it's not every day that multi-billion pound giants are left with only the inside of the nation's stores to market their goods.
David Rea, chief executive of the Association of Convenience Stores, says: "This could be a positive thing for retailers, although the Department of Health is taking a long time to issue guidelines on what level of promotional displays will be allowed in store. We hope the government will be as good as its word by allowing advertising on the gantry. Depending on what they decide, this could be a positive move for retailers."
Certainly, it would appear the manufacturers are already working hard behind the scenes to come up with a more eyecatching instore marketing mix, although all the major players remain coy about their long-term plans, perhaps afraid of creating too much attention while health officials still ponder their recommendations to ministers.
However, no matter what is decided, the likes of Imperial and Gallaher are more likely to miss the effects of sports sponsorship than mainstream advertising, which, according to popular opinion in the trade, has been the holy grail of marketing for cigarette brands for decades now. From July, sports sponsorship for tobacco will be banned apart from those with "global recognition" such as motor racing which has a lifeline until 2006.
Sports sponsorship
Even so, as one supermarket buyer puts it: "Losing sports sponsorship will hurt the tobacco manufacturers most. They have all spent heavily on it but reaped the rewards because it brings exactly the right image to their brands cool, fun and exciting."
Julian Fulbrook, an expert in tobacco advertising law at the London School of Economics, is among those who agree with this assertion and points out that consumer advertising was already becoming less of a big deal for manufacturers as they geared up for the impending changes in advertising law. Indeed, a look at data produced at the end of last year by Nielsen Media Research shows that less than £20m combined was spent on advertising for the UK's top 10 tobacco brands in the 52 weeks to May 2. Compare that with the vast sums of money which continue to be spent on alcohol brands and it's easy to see that it's a proverbial drop in the ocean, particularly when the tobacco sector generates UK sales of more than £10bn a year [ACNielsen].
"At the end of the day, advertising is not nearly so important for the tobacco industry as networking, particularly among teenagers who are deciding which brand to settle on," says Fulbrook. "Although advertising can help to secure an allegiance, the general view is that peer pressure is the strongest influence."
Considering the tobacco industry has long maintained that advertising was only aimed at persuading existing smokers to switch between brands in any case, perhaps the passing of consumer advertising won't be mourned for very long at all.
{{ANALYSIS }}
Now pondering a very different world in the post-advertising ban era, cigarette and cigar manufacturers have put on a brave face in public but there will almost certainly have been many furrowed brows in the boardroom. Meanwhile, the annoyance is compounded by the knowledge that the health lobby is drawing in a satisfactory breath, revelling in their landmark victory against the likes of Imperial, Gallaher, Rothmans and co. The worry now, at least for the trade, is that campaigners won't stop until they force the implementation of draconian measures which have already been taken up in other parts of the world. Examples include the abolition of any in-store point of sale material and even the complete withdrawal of tobacco brands from the view of consumers.
But turning back to the immediate problem at hand, does the advertising ban matter? And how will the tobacco giants peddle their wares now?
Attention is immediately turning to what will be allowed instore, although guidelines from the Department of Health seem remarkably slow in coming. With mainstream advertising banned (ads targeted at retailers in business titles such as The Grocer will still be allowed), the burning question now is how the tobacco giants will get their message across to consumers and how much they will be allowed to get away with in terms of brand displays inside grocers and newsagents. Also, it doesn't take a marketing genius to predict what the potential rewards could be for retailers. After all, it's not every day that multi-billion pound giants are left with only the inside of the nation's stores to market their goods.
David Rea, chief executive of the Association of Convenience Stores, says: "This could be a positive thing for retailers, although the Department of Health is taking a long time to issue guidelines on what level of promotional displays will be allowed in store. We hope the government will be as good as its word by allowing advertising on the gantry. Depending on what they decide, this could be a positive move for retailers."
Certainly, it would appear the manufacturers are already working hard behind the scenes to come up with a more eyecatching instore marketing mix, although all the major players remain coy about their long-term plans, perhaps afraid of creating too much attention while health officials still ponder their recommendations to ministers.
However, no matter what is decided, the likes of Imperial and Gallaher are more likely to miss the effects of sports sponsorship than mainstream advertising, which, according to popular opinion in the trade, has been the holy grail of marketing for cigarette brands for decades now. From July, sports sponsorship for tobacco will be banned apart from those with "global recognition" such as motor racing which has a lifeline until 2006.
Sports sponsorship
Even so, as one supermarket buyer puts it: "Losing sports sponsorship will hurt the tobacco manufacturers most. They have all spent heavily on it but reaped the rewards because it brings exactly the right image to their brands cool, fun and exciting."
Julian Fulbrook, an expert in tobacco advertising law at the London School of Economics, is among those who agree with this assertion and points out that consumer advertising was already becoming less of a big deal for manufacturers as they geared up for the impending changes in advertising law. Indeed, a look at data produced at the end of last year by Nielsen Media Research shows that less than £20m combined was spent on advertising for the UK's top 10 tobacco brands in the 52 weeks to May 2. Compare that with the vast sums of money which continue to be spent on alcohol brands and it's easy to see that it's a proverbial drop in the ocean, particularly when the tobacco sector generates UK sales of more than £10bn a year [ACNielsen].
"At the end of the day, advertising is not nearly so important for the tobacco industry as networking, particularly among teenagers who are deciding which brand to settle on," says Fulbrook. "Although advertising can help to secure an allegiance, the general view is that peer pressure is the strongest influence."
Considering the tobacco industry has long maintained that advertising was only aimed at persuading existing smokers to switch between brands in any case, perhaps the passing of consumer advertising won't be mourned for very long at all.
{{ANALYSIS }}
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