Government Data Shows Decline in Money Spent on Cigarette Promos

The Federal Trade Commission found that cigarette marketing dropped more than 34 percent in 2008.

August 02, 2011

RICHMOND, Va. - Tobacco companies are cutting back on spending for cigarette promotion, the Associated Press reports. The Federal Trade Commission released data that shows marketing cigarettes plummeted more than 34 percent to reach $9.94 billion in 2008, compared to 2003. 2008 is the latest year available.

The numbers point to a shift in how tobacco firms are spending their marketing dollars. Less money is being channeled to cigarettes, which saw an 11 percent decline to 320 billion cigarettes from 2003 to 2008, and more funds are being directed to smokeless tobacco promos.

Marketing dollars spent on smokeless tobacco rose more than twice its 2003 amount, reading $547.9 million in 2008. Sales of smokeless tobacco products jumped close to 11 percent during that same time period.

The numbers point to an overall industry trend to push alternatives to cigarettes for future sales growth. Cigarettes have been the target of numerous tax hikes, smoking bans and health concerns in recent years. Last month, several major tobacco companies raised cigarette prices.

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