Expected ban on junk-food ads may encourage healthy strategy changes for brands

While the terms of potential regulations in Singapore are yet to be confirmed, it is believed that the ban will take place early next year and that the new restrictions would not target specific brands.

Josh Grace, managing director at Leo Burnett Group Singapore, said brands in this sector have two paths to pursue, pointing out that the preferred route is for businesses to adapt products to meet the requirements of the regulations and thereby keep communicating in the media.

The second path, he noted, is for brands to broaden their media selection to move into other channels, where they may have more control over the audience viewing the advertisements.

“Both of these tactics have been seen in the other markets with similar regulations,” he said.

In fact, several big brands have recently pledged to change the way they advertise, and to not engage in any product communication in primary schools unless requested by the school administration for educational purposes or to promote active, healthy living.

While this means brands would have to adapt their advertising campaigns to meet the requirements set by the local authorities, they are still allowed to have a presence in the media, to at least create brand awareness.

Coca-Cola, Ferrero, General Mills, Mars and McDonald’s are among the brands that have announced the first-of-its-kind advertising pledge, entitled ‘The responsible advertising to children pledge’, in the country to change the way they advertise.

It is designed to reduce advertising of foods to children that are high in saturated fats, trans-fatty acids, sugars or salt, with a view to helping parents and teachers reinforce positive messages on balanced diets and healthy lifestyles.

Ray Pak, general manager of UM Singapore, noted that the pledge is an act of corporate responsibility, which in the age of social media requires absolute brand transparency and authenticity.

“The proposed ban is overdue since it has been well documented that children and young adults are exceptionally prone to advertising messages,” he added. “Brands can opt for experiential marketing—on ground and within digital media space—which would take precedence over traditionally CPRP [cost per rating point] driven campaigns.”

Grace noted that brands are aware of the impact of social issues on their businesses, as the rise of the empowered consumer has forced them to rethink their approach to products and marketing.

“This has coincided with a renewed focus on corporate sustainability programs," he added. "Long-term these brands and businesses will only benefit by taking a more sustainable approach to their business interests.”