Combative advertising is not new. But you know what they say, don’t kick a man when he’s down. The same may apply to brands, if netizens reactions are anything to go by. Pine Labs, an Indian company offering services in financial and retail transaction technology, took a dig at a recent newspaper front-page ad by Paytm, which is owned by One97 Communications.
Pine Labs subtly hinted at Paytm’s recent crises and challenges with the RBI by stating, “The front page can be purchased, but trust cannot.” This indirect reference highlights Paytm’s regulatory compliance issues despite warnings, implying that trust is not something that can be acquired through mere publicity.
Pine Labs has been sharing the post on social media, essentially turning it into an ad.
Pine Labs responded to Paytm’s front-page advertisement in the Times of India on February 19 by launching a competitive campaign, highlighting their own offerings in response to Paytm’s claims of omnipresence through sound boxes and QR codes.
Paytm is facing additional challenges as the RBI’s recent measures have compounded its troubles. As of January 31, 2024, Paytm Payments Bank has been barred by the central bank from accepting customer deposits, credit transactions, or account top-ups. Additionally, starting March 15, other banking services offered by Paytm, such as UPI facilities and fund transfers, will be suspended.
The Pine Labs post has sparked mixed reactions on social media, with some praising it while others criticise Pine Labs for targeting a rival during a difficult time.
Classless and reeks of the scarcity mindset ( you have to lose for me to win) so ingrained in most of us
There are better ways to promote your brand without demeaning your competitor pic.twitter.com/1plzqY9a51
— Arindam Paul (@arindam___paul) February 20, 2024
Arindam Paul, the CBO of Atomberg Technologies expressed his dismay on X, stating, “Classless, and reeks of the scarcity mindset ( you have to lose for me to win) so ingrained in most of us. There are better ways to promote your brand without demeaning your competitor.”
Another take was provided by Karthik Srinivasan, an experienced communications strategy consultant on his LinkedIn handle. Srinivasan acknowledges the appropriateness of the RBI’s actions against Paytm due to compliance negligence but finds Pine Labs’ below-the-belt jab unnecessary. While understanding the competitive nature of business, he believes there are civil ways to capitalise on a rival’s misfortune without direct references. He commends PhonePe’s tactful advertising, which subtly positioned itself as an alternative without mentioning Paytm. Pine Labs’ direct reference to Paytm’s situation, especially with the “front page” mention, is seen as crossing a line. While such tactics may be common, they risk framing Pine Labs as fair game for criticism when they face challenges in the future.
Pine Labs woke up and chose violence. pic.twitter.com/walnzNgfeB
— Kritarth Mittal | Soshals (@kritarthmittal) February 20, 2024
Another user of X, Kritarth Mittal talked about the situation in a humorous way, stating, “PineLabs woke up and chose violence.”
Read More: Who wins from Paytm’s loss?