Cigarette Marketing Increases as Tobacco Use Drops
Cigarette volumes have been dropping for many years, but that has not prevented cigarette makers from launching their wallets for advertising and promotion dollars.
As outlined by the Federal Trade Commission, the biggest tobacco firms invested $8.37 billion in 2011 on advertising and special offers in comparison to $8.05 billion in 2010. The boost primarily came from an uptick in investing in price discounts, or discounts paid to cigarette stores so as to lower the price of cigarettes to customers. Particularly, investing in price discounts raised from $6.49 billion in 2010 to $7 billion in 2011.
Price discounts were the greatest investing category in 2011, as it has been annually since 2002.
At the same time, the quantity of cigarettes marketed to bulk suppliers and retail dealers in the USA dropped from 281.6 billion in 2010 to 273.6 billion in 2011.
Cigarette producers have also increased advertising and promotion investing on smokeless tobacco products — from $444.2 million in 2010 to $451.7 million in 2011. Just like cigarette advertising, price discounts form up the biggest investing category for smokeless — making up $168.8 million.
But, in contrast to cigarettes, the vending of smokeless tobacco products is on a rise. The dollar value of sales by tobacco companies went up from $2.78 billion in 2010 to $2.94 billion in 2011. The weight of smokeless tobacco sold increased from 120.5 million pounds in 2010 to 122.7 million pounds in 2011.
The information from the commission’s newest tobacco says, “The Federal Trade Commission Cigarettes Report for 2011” and “The Federal Trade Commission Smokeless Tobacco Report for 2011.” The FTC has released the cigarettes report regularly since 1967 and the smokeless tobacco report regularly since 1987.
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