By Sanjeev Kotnala
It will not be wrong to say that Surrogate advertising is as old as advertising. Surrogate advertising is the practice of indirectly promoting a particular product, brand, or service by advertising another product or brand of similar behaviour or name. Often used for restricted and banned categories like alcohol, tobacco or prescription drugs. It is a common strategy used by companies to promote these restricted products.
Past attempts have not been able to affect surrogate advertising. Why expect a magic wand act from ASCI? I know my friends and me in advertising and marketing have strong views about it, and few have even voiced their opinion publicly. It has been a classic case of a gap between expectations raised through guidelines with a strong stance against it and the actual experience. It has been a let-down by the celebrities and their advisors, who were expected to have enough understanding of the subject.
The Surrogate Advertising Ecosystem
The ecosystem of surrogate advertising has five prime suspects. The manufacturer and marketer of the product – the beneficiary. The advertising/ marketing/ creative agency that crafts and develops communication. The research agencies help find the insight and trigger point the surrogate product could use. Government bodies are expected to monitor surrogate advertising. The industry (advertising) self-regulation body like ASCI and, ultimately, the user, consumer and customer complete the stakeholders.
Manufacturer/ Marketers and Surrogate Advertising
It is futile to expect the manufacturer and marketer to act honestly and transparently and not indulge in surrogate advertising, as that is the business that earns revenue.
After all, brand managers and the marketing department are tasked to create and maintain the brand image of the surrogate product that aligns and reminds of the desired brand attributes and the associations with the main product. They ensure the surrogate advertising campaign positively contributes to the overall brand equity and does not dilute or damage the brand’s reputation. They actively monitor consumer feedback and sentiments and take necessary actions to address any issues or concerns. Brand managers are responsible for protecting and enhancing the brand equity of the surrogate and the main product.
Advertising Agencies and Surrogate Advertising
On the other hand, it will be tough to accept that the advertising/ creative/ media/ research agencies are unaware that they are working on a surrogate brand. They are in the thick and thin of it. They work from understanding the product and surrogate business objective, developing a creative strategy that effectively promotes the surrogate product while indirectly strongly associating and reminding the audience of the restricted product. Making it engaging and compelling. They craft messages and images that convey the desired brand image associated with the prime product while staying within legal and ethical boundaries, avoiding violations. They identify the most suitable media channels for the surrogate media plan, which addresses the primary product audience. And they analyse the outcome to fine-tune the next round of creative and media work.
They could not be doing this blindly.
The agencies can always claim that the product they work on is a legitimate revenue-earning brand well accepted and available in the market. And the discussion is over.
In the current market situation expecting a decision based on Morality and the Ethicality of their decision is invalid.
Research Agencies and Surrogate Advertising
The surrogate product’s decision to communicate around it is primarily a result of market research and consumer insights. Research helps track market trends, competitor activities, and consumer behaviour to stay ahead. Additionally, surrogate advertising monitors the impact and association of surrogates on the leading brand.
Self-Regulation
Self-regulation is expected to be critical in stopping or at least minimising surrogate advertising. It asks for voluntary compliance and adherence to ethical guidelines and industry standards by advertising agencies, brands, and other stakeholders without external regulatory intervention. In India, ASCI is the agency that fulfils this role.
Self-regulatory bodies and industry associations establish a code of conduct addressing surrogate advertising. In India, though we have rules for advertising banned/restricted product categories- the surrogate is governed by guidelines. The self-regulatory body has a simple, user-friendly complaint registration and resolution setup. They investigate complaints, verify violations, and guide the brands to take corrective action.
The self-monitoring and whistleblowing/ reporting the violation is a regular practice but to no impact. It will have no impact till a self-regulatory body can impose fines, stop repeat offender advertising, blacklist and stop associated celebrities from associating with any new product and be able to influence/ guide / direct the media to not run the offending surrogate advertising. Alas, they can do nothing.
Surrogate advertising exists as the guidelines are toothless. And the advertising agencies and brands are not committed to following these responsible advertising practices. The training programmes and awareness campaigns or sharing best practices to educate industry professionals about the ethical and legal implications of surrogate advertising does nothing.
Self-regulation is no solution till external regulatory bodies step in with stricter regulations and enforcement mechanisms.
The Public Knows Everything
This is the X-factor. The banned, restricted product categories draw two kinds of reactions. One is the user who loves it; the other hates it and wants surrogate advertising to stop. A vigilant consumer base that actively notices and highlights surrogate advertising is no solution.
Maybe public awareness development is possible where the main and the surrogate product is boycotted. When you read the statement, you know how foolish it is to think of it. However, it seems to be one of the possibilities.
Let us be honest. None of us will stop pouring a Johnny Walker or Chivas because there is surrogate advertising. Or stop watching IPL because Gavaskar and others participate in surrogate advertising. We have not stopped watching movies and shows of SRK, Ajay Devgan and Akshay Kumar because they acted as brand ambassadors for a surrogate product.
Net-Net
To effectively stop surrogate advertising, a combination of measures involving regulatory actions, industry initiatives, and consumer awareness are necessary. A self-regulating body can’t do much.
Collaboration among all the stakeholders, like the government, regulators, industry associations, advertising agencies, and consumer advocacy groups, is vital to foster a collective effort to combat surrogate advertising. Theoretically, stakeholders can work together to develop and implement effective strategies, share best practices, and coordinate enforcement actions. (LOL)
One needs stronger government rules to explicitly address surrogate advertising practices, defining surrogate advertising in context to current practices and establishing strong monetary and other comprehensive and enforceable. Penalties for non-compliance. The Regulatory bodies must have resources and authority to monitor and investigate and take swift action enforcing fines, warnings, suspension of licenses, or other punitive measures.
Add-on
Here’s a suggestion that may be tough to implement but is a simple one. It can go a long way in curbing surrogate advertising. Ban using the same name and design elements by any product/ brand/ service that is used by a banned/ restricted category. So. there would have been no Kingfisher Airlines, Kamla Pasand Zeliachi, Kesar Elaichi masala, soda, bottled water, glassware, CDs, cups. Or the Keep Walking campaign which anyone can say is selling, not walking, but Johnny talking.
Sanjeev Kotnala is a senior business strategist and educator. He writes on MxMIndia on Wednesdays. His views here are personal.