By Dennis Duncan

Tobacco advertising bans, as a product, do not appear to deliver the intended and promised result: that is, drop-offs in consumption of cigarettes and tobacco products, especially among the young. In fact, in some markets, advertising bans have had exactly the opposite effect; consumption has gone up.

Last June, in another challenge for the tobacco industry, the European Parliament approved an almost total ban on tobacco advertising despite the devastating effects it will have on the E.U. advertising industry. Although restrictions will not be fully enforced until October 1, 2006, they will be all encompassing. There are bans on advertising on billboards and in newspapers and magazines; and bans on tobacco companies using direct-mail marketing and putting logos on non-tobacco products. Sponsorship of sporting and cultural events is also proscribed. The new law affects tobacco advertising in 15 countries in Western Europe, where tobacco companies now spend an estimated US$1 billion a year on marketing.

Under the E.U. directive, any “commercial communication,” direct or indirect, that promotes tobacco would be illegal. The only exceptions would be so-called point-of-sale displays in places where tobacco products are sold, publications brought into the E.U., and tobacco trade publications such as Tobacco Asia.

Publishing companies will no doubt feel the new law first, as print ads are banned in the first phase of implementation within four years. Almost half of all tobacco-advertising revenue goes to newspapers, magazines, and outdoor billboards. Further, publishers say the ban slams press freedom and that reduced ad revenue could force many publications to go bankrupt. Ad agencies also will also feel the pinch.