Advertising has always been an essential part of business growth, providing companies with the ability to communicate their brand value and products to consumers. From eye-catching billboards to high-concept TV spots and – now – digital and social media campaigns, advertising has continually evolved, adopting new channels and formats to capture public attention. However, this freedom to innovate has never been universal. Certain products and industries—such as tobacco, sexual wellness, legal cannabis, or even cryptocurrencies—face significant hurdles in advertising due to regulatory constraints and shifting policies. These restrictions are often driven by societal concerns around health, morality, and consumer protection, leading to an environment where brands in these industries have to tread carefully, seeking creative strategies to reach their audience.
While the core concept of advertising—engaging storytelling, persuasive messaging, and visual appeal—remains unchanged, navigating the world of restricted markets requires an additional layer of strategic finesse. Global platforms like Google and Meta are constantly refining their policies, often tightening regulations around these sensitive categories, making it challenging for brands to find a compliant path to reach consumers. This environment, although restrictive, has given rise to an era of unprecedented innovation in marketing. Brands operating in these spaces have to rethink traditional approaches, find legal and ethical workarounds, and often adopt cutting-edge technology to stay ahead. It’s a domain where compliance, creativity, and a deep understanding of regulatory landscapes intersect; a playground for innovators like Michael Althammer, the founder of e-commerce marketing agency GHOSTS, who specializes in navigating these complexities.
Michael Althammer is no stranger to the challenges of advertising in restricted markets. As a leader in the niche, his expertise has been honed through years of experience working with companies in highly regulated industries. His insights reveal a profound understanding of how to thrive in spaces where others falter. According to him, the key to success in these restricted markets is the ability to remain agile and innovative while adhering to stringent regulations.
GHOSTS Founder, Michael Althammer
This visionary notes that the advertising landscape has become more challenging recently, with platforms banning numerous ad accounts within just a few weeks due to increased scrutiny. “Occasionally, some of our ad accounts are flagged, but we always maintain a robust system of backup accounts to ensure continuity. This approach allows us to swiftly adapt and keep campaigns running smoothly without any major disruptions, all while staying compliant with platform policies,” he explains.
This preparedness is essential in a world where digital platforms are becoming more vigilant, using both AI and human audits to monitor and enforce compliance. “We maintain active campaigns across all accounts to ensure they meet platform activity requirements and uphold the highest standards of compliance. This proactive approach helps us remain prepared and ensure that we can swiftly adjust to any unexpected policy changes or interruptions,” Michael adds.
This type of contingency planning is critical for companies in restricted industries, where a single misstep can result in significant disruptions. Michael’s team’s approach is not just about crisis management; it’s about proactively building systems that allow for seamless pivots. “For a lot of companies, getting flagged is a crisis,” he says. “For us, it’s just a minor inconvenience. We’ve designed our systems to withstand these changes and stay operational, even when policies shift unexpectedly.”
One of the most significant trends impacting the future of advertising is the role of artificial intelligence (AI). While AI has revolutionized many aspects of marketing, from data analysis to personalized targeting, its application in restricted markets has been met with mixed results. “AI has come a long way in helping large platforms like Google and Meta ensure compliance and content integrity. However, in highly regulated markets, the nuances between legitimate and non-compliant offers can sometimes be challenging for automated systems to interpret. That’s why our team continually ensures that our campaigns adhere to both platform policies and ethical standards, proactively addressing any potential issues before they arise.”
Despite these advancements, Michael sees a shift back to human oversight as inevitable. “The final touch in any successful campaign will always come from a human. AI can handle bulk tasks—like generating 50 variations of an ad copy in seconds—but it’s the human creativity that refines and elevates these drafts into compelling messages.” He believes that the future of advertising in restricted markets will involve a hybrid approach where AI handles the heavy lifting, and humans bring in the strategic and creative finesse.
Operating in restricted markets is not just about adhering to regulations; it’s also about maintaining ethical standards. The GHOSTS founder highlights the importance of aligning advertising strategies with both legal and ethical guidelines, particularly when targeting sensitive demographics. “Just because you’re legally allowed to advertise a product to 18-year-olds doesn’t mean you should,” he asserts. “At GHOSTS, we often target older age groups even when the law permits us to go younger. It’s about being responsible and ensuring that we’re not exploiting vulnerable audiences.”
He cites the tobacco industry in Europe as an example of how GHOSTS navigates these complexities. “The European Union has a comprehensive set of guidelines for tobacco advertising, covering everything from the visuals used to the specific demographics targeted. We’ve integrated these guidelines into our internal policies to ensure that all our strategies are compliant and ethical. Even if a product can legally be advertised to an 18-year-old, we might choose to only target 23 and older. It’s a nuanced approach that requires constant vigilance and a deep understanding of both the regulations and the moral implications.”
Looking ahead, Michael predicts that regulations will only become more stringent, driven by powerful lobbies and evolving societal standards. “Regulations are constantly evolving, and industries like tobacco and alcohol are prime examples. The more regulated these markets become, the more they push for policies that favor established players,” he says. This dynamic creates a paradox where increased regulation can actually entrench the position of market leaders, making it harder for new entrants to compete.
However, this visionary leader remains optimistic. “Innovation thrives under constraints. When traditional channels are closed, it forces you to think creatively and look for new ways to connect with your audience.” He points to the evolution of tobacco advertising in Formula One as an example. “When tobacco sponsorships were banned, companies started using subtle cues, like pinstriped car wraps that only revealed logos at high speeds; and this was back in 2010. It was a brilliant workaround that kept the brand visible without breaking the rules.”
As policies tighten, the need for innovative solutions will only grow. Companies like GHOSTS, with their ability to adapt and innovate, will be at the forefront, finding new ways to navigate the restrictions while maintaining ethical standards. “It’s a challenging space, but that’s what makes it exciting,” Michael concludes. “The more difficult it gets, the more room there is for truly groundbreaking work.”
