DID YOU KNOW?

Based on recent data, cigarette company spending on advertising and promotional expenses was $36 million a day.

How much do they spend?
Data from 2005 show that cigarette company spending on advertising and promotional expenses was:

$13.11 billion for the year (1), or
$36 million per day (1)
$45 for every person in the U.S. (1,2)
$290 for each U.S. adult smoker. (1,3)

This is nearly twice the spending they did in 1998, although less than 2003 ($15.12 billion). (1)

In Maryland, tobacco marketing expenditures increased by 75% between 1998 and 2005.

What are they paying for?

Discounts paid to retailers to reduce the price of cigarettes (75% of spending)
Coupons for consumers (6.6%)

“Promotional allowances” or payments directly to retailers or wholesalers (6%)
Discounts involving bonus cigarettes (5.5%).
Cigarette companies spent $31 million on the sponsorship of sports teams or individual athletes in 2005. (1)

The five major U.S. smokeless tobacco manufacturers spent nearly $251 million on smokeless tobacco advertising and promotion in 2005. (4) The smokeless tobacco industry spent $15.75 million on sports and sporting events in 2005. (4)

references | updated: 10.03.2007

references

Federal Trade Commission. Cigarette Report for 2004 and 2005.(PDF–880KB) Washington, DC: Federal Trade Commission; 2007[cited 2007 Apr 26]. Available from: http://www.ftc.gov/reports/tobacco/2007cigarette2004-2005.pdf.
Census Bureau. United States General Demographic Characteristics. 2005 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau; 2007 [cited 2007 Apr 26]. Available from: http://factfinder.census.gov/servlet/DTTable?_bm=y&-geo_id=01000US&-ds_name=ACS_2005_EST_G00_&-_lang=en&-
mt_name=ACS_2005_EST_G2000_B01001&-format=&-CONTEXT=dt.
Centers for Disease Control and Prevention. Tobacco Use Among Adults—United States, 2005. Morbidity and Mortality Weekly Report 2006;55(42):1145-1148 [cited 2006 Dec 13]. Available from: http://www.cdc.gov/mmwr/preview/mmwrhtml/mm5542a1.htm.
Federal Trade Commission. Smokeless Tobacco Report for the Years 2002–2005.

Substance Abuse and Mental Health Services Administration. The National Survey on Drug Use and Health: 2005 Detailed Tables, Tobacco Brands. (PDF–124KB) Rockville, MD: Substance Abuse and Mental Health Services Administration, Office of Applied Studies; 2006 [cited 2006 Dec 13]. Available from:

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