I doubt this had any effect on pipe smokers habits. If you're smoking indoors, you're inhaling. This was more of a marketing campaign by some Palookas from Paducah to drum up interest in their product.
I've read old accounts of smoking pre cigs and from what I've read it sounds like most people pulled smoke into their mouths maybe retrohaled and some freaks inhaled but inhaling doesn't really seem like a big thing anywhere until cigs come about and before commercial production cigs where basically other peoples cigar butts rolled up into paper of some sort. Those apparently where inhaled in attempt to some nicotine into ones system despite basically being a hobo or skinflint. Inhaling pipes or cigars into the lungs has never been a common thing. No what this ad means is that because of cigs being the new easy way to smoke for a while at that point people are starting to notice "tobacco" smokers aren't so healthy. But that the cig thing still isn't new enough that people forget grandpa still kicking about and lively with a pipe in mouth.
Not contemporary with this campaign, but Phillip Morris ran ad campaigns on their cig and pipe tobaccos to *encourage* inhalation.
I can't find a source at the moment but I seem to remember reading that in the U.K. in the 1800's there was a significant movement away from Pipe Tobacco in favor of Snuff, largely motivated by health implications.
from my understanding it had more to do with the Spanish Prize. Snuff before that was more expensive then pipe tobacco. Until a Spanish ship got captured that had a huge haul of snuff which suddenly flooded the market and dropped the price. Or at least that's the common mythology. Also before the invention of the lighter snuff was easier to take.
