That is my understanding too - but my understanding is on shaky ground and only based on a few dubious web sources.

There are some substances that are chemically similar to nicotine which will bind to the same receptors. Some are used in anti-smoking aids meant to ease the craving for cigarettes, although that is the opposite of the stated goal of the ad, which was to let people smoke more! Perhaps the idea was to block nicotine jitters?

It is also unclear if this product actually contained anything like that. And of course, cigarettes are harmful in lots of other ways, like you say.