What Are Dark Markets?

When it comes to advertising alcohol, you have to be privy to your surroundings as the relevant laws change from country to country. Dark markets are those which have heavy restrictions on the advertising of certain products such as alcohol and tobacco.

France, for example, has a total ban in place which prohibits the advertising of alcohol on TV and radio, as well as in newspapers. And although any sporting events sponsored by an alcohol product can be broadcast on TV, the placement of advertisements (hoarding etc.) cannot be shown on that broadcast to people watching at home. This categorises France as a dark market for alcohol advertising.

Where Are The Other Dark Markets?

In Europe, France is joined by Norway, Sweden, Russia, Turkey, and Poland when it comes to being a dark market. On a global scale, Malaysia, Thailand, UAE, and Singapore can be added to this list (among others).

There are, however, also some not-so-dark markets such as The Czech Republic where there are no heavy restrictions on advertising alcohol (at least none that are strictly enforced!).

So These Markets Are a Waste of Time for Alcohol Brands?

Definitely not.

Dark Markets can actually return very high margins for alcohol brands. This is especially true for dominant brands in a market as competitors find it very difficult to play catch-up with no advertising. Dark markets can, in fact, help to make dominant brands more stable although they do, naturally, also limit the brand's potential for growth.

Additionally, there are ways to shine some light on these markets (excuse the pun!).

Take Sweden as an example; Sweden has banned all alcohol advertising on TV. However, Swedish people also have access to TV channels from abroad such as the BBC in Britain. This means that an alcohol brand could potentially target a Swedish audience by releasing an ad on the BBC that may appeal to a Swedish as well as a British audience.

Leaving comment: where there's a will, there's a way!