Tobacco Companies Increase Spend Despite Curbs

14 March 2001

Despite restraints on tobacco advertising introduced in 1999, tobacco companies still managed to increase their marketing expenditure by almost one-quarter, according to the Federal Trade Commission.

Tobacco firms signed agreements with states’ attorney generals in 1999, forcing them to end the advertising of cigarettes on billboards. However, in the same year – the last for which there are available figures – tobacco companies increased their marketing spend to $8.24 billion, a 22.3% rise on 1998.

Much of this increase went on ‘slotting’ [the purchase of instore shelf and display space] plus value-added promotions, which accounted for $3.54bn and $2.56bn respectively (up from $2.88bn and $1.56bn in 1998).

It was a similar story with print advertising – newspaper spend jumped from $29.4m in 1998 to $51m, while adspend in magazines rose from $281.2m to $377.4m.

News source: Advertising Age - Daily Deadline