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Research Report

Surrogate advertisements are marketing strategies used to promote products that cannot be directly advertised due to regulatory restrictions, such as alcohol and tobacco. This approach has gained popularity in Nepal, where companies creatively promote their brands while circumventing existing advertising laws. However, the lack of explicit regulations on surrogate advertising poses challenges to consumer protection and allows companies to exploit loopholes for promoting potentially harmful products.

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0% found this document useful (0 votes)
17 views2 pages

Research Report

Surrogate advertisements are marketing strategies used to promote products that cannot be directly advertised due to regulatory restrictions, such as alcohol and tobacco. This approach has gained popularity in Nepal, where companies creatively promote their brands while circumventing existing advertising laws. However, the lack of explicit regulations on surrogate advertising poses challenges to consumer protection and allows companies to exploit loopholes for promoting potentially harmful products.

Uploaded by

khadkaniruta306
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Concept of Surrogate Advertisement

Surrogate advertisements are a unique form of marketing where the actual product, which may
be prohibited or restricted by regulations, cannot be directly showcased or its attributes and
features portrayed as they are. Instead, surrogate advertisements focus on capturing the
viewer's interest and conveying the message without explicitly revealing the product. Surrogate
advertising is done when the original product is not allowed to advertise itself on mass media
(Chandrashekhar Singh, 2015).

It is commonly used when there are restrictions or bans on advertising certain products, such as
alcohol, tobacco or gambling. This technique often duplicates the brand image of one product
to promote another product of the same brand.

Surrogate advertisement represents a creative approach to marketing that enables companies


to showcase their products indirectly, even without explicitly revealing them. Despite the
constraints of not being able to showcase the actual product, they have proven to be effective
in influencing consumer buying decisions, leading to higher sales rates. By capturing viewers'
interest and conveying the message creatively, surrogate advertisements tap into the market
potential and generate substantial revenues for the companies that employ them (Munusamy
and Ambily 2025).

Emergence of surrogate advertisement


The history of surrogate advertisement can be traced back to Britain when a rise in domestic
violence occurred due to increased alcohol consumption by men. In response, women took to
the streets to protest against the widespread promotion of liquor-based products. As a result of
these events, companies began adopting the strategy of surrogate marketing to sell their goods
in disguise for some other related products.

In Nepal

In recent years, the surrogate advertising technique has gained popularity in Nepal as
companies search for alternative ways to promote their brands in a restrictive regulatory
environment. In Nepal, the Yeti Brewery, the parent company of Arna Beer runs Arna Music, and
Ruslan Vodka has Ruslan FM.

Similarly, Tuborg Open Session, a YouTube series featuring live studio-recorded performances by
various well-known artists and bands promotes the beer of the Tuborg brand. Similarly, 1XBET is
a gambling company and 1XBAT, which has the same logo as 1XBET sponsored the ACC Men’s
Premiere Cup held in Kathmandu and controversy reached its peak.
The Advertisement (Regulation) Act, 2019, prohibits advertising gambling, unauthorized betting,
and prohibited materials such as alcohol, tobacco, etc. This act fails to mention the provision
regarding surrogate advertisement of such materials.

Whereas, Section 7 of the Consumer Protection Act, 2018, prohibits making wrong or
misleading advertisements or publicity of goods or services. Similarly, Section 10 of the
Competition Promotion and Market Protection Act, 2006 also mentions that no person or
enterprise that produces or distributes any goods or services shall do any misleading
advertisement. Also, the World Health Organization Framework Convention on Tobacco Control
2005 prohibits all forms of tobacco advertising, promotion and sponsorship that promote a
tobacco product by any means with an intention to reduce tobacco consumption.

The government of Nepal has already enacted laws and acts that prohibit misleading
advertisements with an aim to protect consumer’s rights and ensure that they are not misled by
false or deceptive advertisements.

However, the fact that surrogate advertising which is misleading and creates false impressions
on people is being practiced in Nepal And this practice undermines the intended purpose of the
existing laws. The absence of explicit regulations regarding surrogate advertising poses a
significant challenge to consumer protection and ethical business practices. Companies are
exploiting this regulatory gap by using surrogate advertising as a loophole to indirectly promote
products that may be harmful or prohibited by law (Rijal 2025).

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