Tobacco Advertising - Budgets

Budgets

Tobacco companies have had particularly large budgets for their advertising campaigns. The Federal Trade Commission claimed that cigarette manufacturers spent $8.24 billion on advertising and promotion in 1999, the highest amount ever at that time. The FTC later claimed that in 2005, cigarette companies spent $13.11 billion on advertising and promotion, down from $15.12 billion in 2003, but nearly double what was spent in 1998. The increase, despite restrictions on the advertising in most countries, was an attempt at appealing to a younger audience, including multi-purchase offers and giveaways such as hats and lighters, along with the more traditional store and magazine advertising.

Marketing consultants ACNielsen announced that, during the period September 2001 to August 2002, tobacco companies advertising in the UK spent £25 million, excluding sponsorship and indirect advertising, broken down as follows:

• £11 million on press advertising
• £13.2 million on billboards
• £714,550 on radio advertising
• £106,253 on direct mail advertising

Figures from around that time also estimated that the companies spent £8m a year sponsoring sporting events and teams (excluding Formula One) and a further £70m on Formula One in the UK.

The £25 million spent in the UK amounted to approximately $0.60 USD per person in 2002. The 15.12 billion spent in the United States in 2003 amounted to more than $45 for every person in the United States, more than $36 million per day, and more than $290 for each U.S. adult smoker.