WASHINGTON – The Food and Drug Administration is not going to stand in Madison Avenue's way when it comes to the marketing of e-cigarettes, says Ad Age. Last week’s announcement of proposed rules regulating e-cigarettes is likely to have little effect on the industry's trajectory, including the marketing dollars pouring into e-cigarette promotion.
Notably, FDA did not weigh in on advertising restrictions. That means the TV commercials, radio spots, print ads, billboards, NASCAR sponsorships and other campaigns will continue. This represents a stark departure from expectations last year, when analysts and some industry insiders assumed the FDA would try to knock e-cigarette commercials off the air and set other boundaries. Last fall, a tobacco industry analyst referred to a TV ban as a "no brainer."
"It's going to get a lot of people upset," said Jason Healy, president of Blu eCigs.
"From a marketing perspective, I think this is great," he added, praising what he called the FDA's science-based approach. "It's a cautious approach and not a knee jerk reaction," he added.
The lack of rules on e-cigarettes so far has allowed brands like Blu, NJoy and others to advertise on TV — something traditional cigarettes have not done since Congress banned the practice in 1971.
It remains unclear, however, whether FDA’s announcement will encourage more advertising around e-cig products. A report this month from Sen. Richard Durbin (D-IL) said the largest e-cigarette makers spent nearly $60 million combined on advertising and promotion, with marketing budgets at some companies growing by more than 100% year over year.