As Tobacco Companies Shift Marketing, Prevention Groups Struggle March 14, 2006
News Summary
Tobacco companies have become more low-key with their marketing, presenting a less-visible target for prevention groups, the New York Times reported March 10.
Barred from many traditional advertising venues, tobacco firms have turned to grassroots and other alternative marketing schemes that have proven to be quite effective. Philip Morris, for example, has eschewed magazine and print ads for direct mail, coupons, and promotions sent to a database of smokers.
U.S. cigarette sales have hit a 55-year low, but tobacco company profits remain strong. And spending on advertising has actually gone up, despite bans on TV, radio, and billboard ads, topping $15 billion in 2003. Some U.S. tobacco companies make most of their profits overseas.
Meanwhile, prevention groups are having a hard time getting funding as their adversary has gone underground. Funding for the American Legacy Foundation, established as part of the 1998 nationwide tobacco settlement, has tapered off; the group is now operating on income from investing half of its original endowment. "It truly is a David versus Goliath scenario," said Joseph Martyak, the foundation's executive vice president for marketing, communications and policy.
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