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Belch: Advertising and
Promotion, Sixth Edition
VII. Special Topics and
Perspectives
20. International
Advertising and Promotion
• The amount of advertising a single advertiser may use in total or in a specific
medium.
• The use of foreign languages in ads.
• The use of advertising material prepared outside the country.
• The use of local versus international advertising agencies.
• The specific taxes that may be levied against advertising. 36
A number of countries ban or restrict the advertising of various products. Cigarette
advertising is banned in some or all media in numerous countries besides the United
States, including Argentina, Canada, France, Italy, Norway, Sweden, and Switzerland.
The Australian government limits tobacco advertising to point of purchase. The ban
also excludes tobacco companies from sponsoring sporting events. In Malaysia, a government
ban on cigarette-related advertising and sponsorship was initiated in 2003 in
an effort to curb the rising number of smokers in the country. 37 In China, tobacco and
liquor advertising are banned except in hotels for foreigners.
Recently the tobacco industry has been reducing its advertising efforts in markets
around the world, including Asia and Eastern Europe, where they have enjoyed much
more regulatory freedom. Three of the largest tobacco companies are leading an effort
to implement self-imposed restrictions and requirements for their advertising. 38 For
example, the tobacco industry agreed to stop all television advertising in Mexico at the
end of 2002 as part of a raft of new self-regulatory measures. 39 Many of these restrictions
are already being forced on the companies in North America, Western Europe, and
North Asia, where governments take a tough stance on tobacco advertising. However,
regulations in many other countries, such as Indonesia and the Philippines, are minimal.
The industry’s self-regulatory efforts are seen as a move to head off a campaign by
the World Health Organization for a worldwide ban on all tobacco advertising.
In Europe there has been a longstanding ban on advertising for prescription-drug
products, which is designed to keep government-subsidized health care costs under
control. The European Union has argued that advertising increases the marketing budgets
of drug companies and results in higher prices. The ban prevents prescription-drug
companies from mentioning their products even on their websites or in brochures,
although some relaxation of these restrictions is being considered by the European
Commission for drugs used to treat AIDS, diabetes, and respiratory ailments. 40
While international marketers are accustomed to restrictions on the advertising of
cigarettes, liquor, and pharmaceuticals, they are often surprised by restrictions on
other products or services. For example, margarine cannot be advertised in France, nor
can restaurant chains. For many years, the French government restricted travel advertising
because it encourages the French to spend their francs outside the country. 41
Many countries restrict the media advertisers can use. In 1999 the European Commission
threw out an appeal against Greece’s national ban on toy advertising on daytime
television. Thus advertisers can advertise toys on TV only during the evening
hours. 42 Some of the most stringent advertising regulations in the world are found in
Scandinavian countries. Commercial TV advertising did not begin in Sweden until
1992, and both Sweden and Denmark limit the amount of time available for commercials.
Advertising aimed at young children has not been legal in Sweden since commercial
television was introduced in the country a decade ago. The Swedish government
feels that young people are not able to differentiate between advertising and programming
and are not capable of understanding the selling intent of commercials. 43 Saudi
Arabia opened its national TV system to commercial advertising in 1986, but advertising
is not permitted on the state-run radio system. Advertising in magazines and newspapers
in the country is subject to government and religious restrictions. 44
Many governments have rules and regulations that affect the advertising message.
For example, comparative advertising is legal and widely used in the United States
and Canada but is illegal in some countries such as Korea and Belgium. In Europe, the
European Commission has developed a directive to standardize the basic form and
content of comparative advertising and develop a uniform policy. 45 Currently, comparative
advertising is legal in many European countries, illegal in some, and legal and
rarely used in others such as Great Britain. Many Asian and South American countries
© The McGraw−Hill
Companies, 2003
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Chapter Twenty International Advertising and Promotion