The 2003 advertising spending was the highest total ever reported by Big Tobacco to the Federal Trade Commission (FTC). At the same time that the companies were increasing their advertising to sell cigarettes, they were cutting back on campaigns to discourage youth smoking. In 2003, tobacco firms spent $72.9 million on ads warning against the dangers of smoking, down 1.8 percent from 2002.

Big Tobacco firms have more than doubled their marketing budgets since 1998, when companies signed the Master Settlement Agreement with states. The $206-billion settlement was billed as a vehicle for funding stop-smoking campaigns, but most states diverted parts or all of the money for other uses.

"The main thing is the staggering amount that is spent marketing a product that kills half the people that use it," said Danny McGoldrick, research director for the Campaign for Tobacco-Free Kids.

About $11 billion of the tobacco marketing budget was paid the retailers and wholesalers to reduce cigarette prices. The industry also spent significant sums on promotions like offering free cigarettes and discount coupons.

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