So how are tobacco firms going to advertise e-cigarettes?

A sexy comeback?

It looks like doubles all round: ad agency execs are no doubt rubbing their hands in glee. Christmas may come early this year for some ad execs. Tobacco advertising is making an unexpected comeback. Not a misprint – ciggy firms are already plugging their wares on US television. It really is like going back in time.

This is all to do with e-cigarettes. And this may just be the start. These little electronic gadgets contain a battery and a replaceable cartridge that turn nicotine and other chemicals into vapour inhaled by the user. 

Lorillard, the third-largest US tobacco company and owner of the Newport brand, snapped up Blu e-cigs last year for over $100m. Since October, it has been running TV ads starring actor Steven Dorff: sales are booming. Cue Lorillard’s rivals getting in on the act. Altria – parent company of Philip Morris and owner of the Marlbro brand – is launching its first e-cig.

RJ Reynolds (Camel and Winston are among its killer brands) is to ramp up its e-cig activity via its Vuse product. Reynolds is readying a TV ad campaign to roll out promoting Vuse as early as August. Meantime, British American Tobacco (BAT) - Benson & Hedges, Dunhill and John Player count among its brands - will promote an e-cig branded Vype.

At each firm, there is one common and hugely predictable theme: multi-million pound or dollar marketing budgets. And this is where things may become interesting. Just how will ad creatives promote the latest incarnation of the supposedly safe cigarette?

Then there is the matter of brand ambassadors? In the past, actors such as Ronald Reagan, Bob Hope and Rock Hudson plugged Chesterfield cigarettes; Phil (Sgt Bilko) Silvers was the face of Camel.

In the UK, I recall class ads from early schooldays for Manikin cigars featuring Bond Girl actress and model Caroline Munro. Sheer enjoyment from Manikin, I think ran the tagline. Sheer lechery more like.

Other memorable tobacco ads included Ronnie Corbett and Gregor Fisher: they were at least given some decent scripts (to the accompaniment of Bach’s Air on the G String) to plug Hamlet cigars.

The wonderful George Cole, in his pre-Minder days, was also on a "nice little earner" plugging Benson & Hedges.

Among contemporary actors and celebs who continue to smoke real cigs, who might agencies turn to? Rhianna? Britney? Eva Mendes? Or how about Simon Cowell, regularly snapped with cig in hand?

Agents for other celeb smokers such as Kerry Katona or Jeremy Clarkson may not be in heavy demand but who knows. Courtney Love has been the front-woman in ads for the Njoy brand of e-cigs.

Other possibles might include Kate Moss or better still: Cheryl Cole. I have a vague notion that she has snapped with cig in hand not so long ago. On a more serious point: can tobacco firms – given the mendacious nature of much of its past advertising – be trusted to advertise e-cigs responsibly?

For that matter, concerns remain about certain aspects of these firms recent marketing activity in emerging markets such as China and Indonesia. All of this marketing and M&A activity is gathering steam ahead of any definitive evidence about e-cigarette safety. Research to date – such as there has been - suggests that the vapour emitted by e-cigs is not harmful. It consists largely of water and there seem to be no issues about passive e-cig smoking.

The UK government is still to determine if e-cigs are to be licensed and regulated as an aid to quit smoking. Medical experts have been stepping up their lobbying of government to classify e-cigs as a form of nicotine-replacement therapy. That would mean that the products would be subject to strict checks.

Not so long ago the tobacco industry lobbied and argued and spun ad nauseam that increased regulation and ad restrictions would spell the death knell for the entire industry. They got that wrong; totally, utterly wrong in fact. Tobacco firms have very low amounts of debt and in recent years have offered their shareholders inflation protection and strong dividends. Given their track record of business forecasts, it might be prudent to take with a pinch of salt all that the tobacco sector says about the business prospects for e-cigs.

We may at least see some decent ads though.

Photograph: Getty Images

Douglas Blakey is the editor of Retail Banker International

Show Hide image

An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com