Spending on Tobacco Marketing Increases, Mostly for Giveaways June 13, 2003
News Summary
The Federal Trade Commission (FTC) says that the biggest companies in the tobacco industry spent $11 billion on advertising and marketing in 2001, up 17 percent despite declining sales of cigarettes.AdWeek reported June 12 that the FTC report showed that while advertising in newspapers, magazines, and point-of-sale ads declined, promotional spending leaped from $3.45 billion to $5 billion annually. Promotions included "buy one, get one free" deals and giveaways of T-shirts and other gifts.
"Philip Morris USA continues to take steps to reduce the overall visibility of its brand advertising to ensure that it is marketing its products in a responsible way to adult smokers," said Tina Walls, a company spokesperson.
But separately, Campaign for Tobacco-Free Kids Executive Director William V. Corr replied, "The tobacco companies have tried to convince the public and policy makers that they have changed for the better and curtailed their harmful marketing practices since the state tobacco settlement. But today's report provides powerful evidence that the tobacco companies have changed for the worse and have in fact increased their marketing in ways effective at addicting children.
"While the settlement restricted some forms of marketing effective at reaching kids, such as billboards and event sponsorships, the tobacco companies have simply shifted their resources and increased spending in other ways that appeal to kids, such as high-visibility store displays, price discounts that make cigarettes more affordable to kids, and free gifts with purchase," said Corr.
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