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Will brands be able to survive a ban on surrogate advertising?

Surrogate advertising has been a clever strategy used by brands to promote products that are otherwise banned from direct advertising. This practice involves promoting legal products or brand extensions under the same brand name as the banned product. While this tactic may seem sneaky, it has been a common practice in industries such as tobacco and alcohol, where direct advertising is prohibited by law.

One of the main reasons for surrogate advertising is the ban on ads for sin goods like tobacco and liquor in India. These bans were put in place to protect public health and prevent the promotion of harmful products. However, brands have found loopholes in the system to continue promoting their products indirectly. By advertising other legal products under the same brand name, companies can maintain visibility and boost sales without violating the law.

Despite the regulations in place, some brands have taken advantage of these loopholes to promote non-existent products or manipulate sales figures to meet the criteria for legal advertising. This has raised concerns among authorities, who are now cracking down on surrogate advertising practices. With the rise in alcohol consumption and the massive market for products like pan masala in India, the need for stricter regulations has become apparent.

While the authorities are considering a complete ban on surrogate advertising, brands tied to sin goods have diversified their businesses to mitigate risks and maintain brand visibility. Companies like Kingfisher and ITC have expanded into other industries, such as aviation, hotels, and consumer goods, to balance out their revenue streams. This diversification not only helps these brands thrive but also makes it difficult for authorities to enforce strict regulations.

New players entering the market may face challenges if surrogate advertising is banned, but innovative strategies can still make a difference. Brands like Bira have successfully positioned themselves as lifestyle brands and diversified their product offerings to stand out in a competitive market. By taking a fresh approach and focusing on building a strong brand identity, new players can overcome the hurdles posed by stricter regulations.

In conclusion, the debate around surrogate advertising raises questions about the effectiveness of current regulations and the impact on brands tied to sin goods. While banning surrogate advertising may affect advertising agencies and create challenges for some brands, it could also lead to a more transparent and ethical advertising landscape. As authorities continue to monitor and enforce regulations, the future of surrogate advertising remains uncertain, but one thing is clear – brands will need to adapt and innovate to thrive in a changing market environment.

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