The amount spent on cigarette advertising and promotion by the largest cigarette companies in the U.S. declined from $9.94 billion in 2008 to $8.53 billion in 2009, and again to $8.05 billion in 2010, according to a new report from the Federal Trade Commission (FTC).
The FTC has issued the Cigarette Report periodically since 1967 and the Smokeless Tobacco Report periodically since 1987.
The largest spending category in the Cigarette Report in both 2009 and 2010 was spending on price discounts paid to cigarette retailers or wholesalers in order to reduce the price of cigarettes to consumers. This category accounted for $6.67 billion, or 78.2%, of total spending on advertising and promotion in 2009, and $6.49 billion, or 80.7%, of that total in 2010.
The number of cigarettes sold or given away to wholesalers and retailers in the U.S. declined from 322.6 billion in 2008 to 290.3 billion in 2009, and to 282.0 billion in 2010.
According to the Smokeless Tobacco Report, spending on advertising and promotion fell from $547.87 million in 2008 to $492.10 million in 2009, and again to $444.20 million in 2010.
