Fact Sheet

Tobacco Industry Marketing

(updated April 2007)

Tobacco Industry Marketing Expenditures

In 2005, cigarette companies spent $13.11 billion on advertising and promotional expenses, down from $15.12 billion in 2003,¹ but nearly double what was spent in 1998.¹ This amounted to more than $36 million per day,¹ more than $45 for every person in the United States,^1,2and more than $290 for each U.S. adult smoker.^{1, 3}
The four highest marketing expenditure categories are 1) promotional allowance price discounts paid to retailers or wholesalers to reduce the price, such as off-invoice discounts, buy downs, or voluntary price reductions ($9.8 billion or 75%); 2) coupons ($870 million or 6.6%); 3) promotional allowances, such as payments to retailers or wholesalers ($846 million or 6%); and 4) retail value-added involving bonus cigarettes ($725 million or 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 $250.8 million on smokeless tobacco advertising and promotion in 2005 (the latest year with available data).⁴ The smokeless tobacco industry spent $15.75 million on sports and sporting events in 2005.⁴

Tobacco Industry Marketing and Specific Populations

Marlboro is the cigarette brand preferred by 48% of smokers aged 12 to 17 years, followed by Newport (23%) and Camel (10%).⁵ These are the brands most heavily advertised in the United States.⁶
Women have been extensively targeted in tobacco marketing, and tobacco companies have produced brands specifically for women.⁷ Such marketing toward women is dominated by themes of social desirability and independence, which are conveyed by advertisements featuring slim, attractive, and athletic models.⁷
Certain tobacco products are advertised and promoted disproportionately to members of racial/minority communities.⁸ For example, marketing toward Hispanics and American Indians/Alaska Natives has included advertising and promotion of cigarette brands with names such as Rio, Dorado, and American Spirit, and the tobacco industry has sponsored Tet festivals and activities related to Asian American Heritage Month.⁸
Research suggests that three African-American publications—Ebony, Jet, and Essence—receive proportionately higher revenues from tobacco companies than do mainstream publications.⁸

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.
(PDF–619KB) Washington, DC: Federal Trade Commission; 2007[cited 2007 Apr 26]. Available from: http://www.ftc.gov/reports/tobacco/02-05smokeless0623105.pdf.
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: http://oas.samhsa.gov/nsduh/2k5nsduh/tabs/Sect7peTabs58to67.pdf.
Centers for Disease Control and Prevention. Changes in Cigarette Brand Preferences of Adolescent Smokers—United States, 1989–1993. Morbidity and Mortality Weekly Report1994;43(32):577–581 [cited 2006 Dec 13]. Available from: http://www.cdc.gov/mmwr/preview/mmwrhtml/00032326.htm.
U.S. Department of Health and Human Services. Women and Smoking: A Report of the Surgeon General. Atlanta, GA: U.S. Department of Health and Human Services, Public Health Service, CDC, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health; 2001 [cited 2006 Dec 13]. Available from: http://www.cdc.gov/tobacco/data_statistics/sgr/sgr_2001/index.htm.
U.S. Department of Health and Human Services. Tobacco Use Among U.S. Racial/Ethnic Minority Groups—African Americans, American Indians and Alaska Natives, Asian Americans and Pacific Islanders, and Hispanics: A Report of the Surgeon General. Atlanta, GA: U.S. Department of Health and Human Services, CDC; 1998 [cited 2006 Dec 13]. Available from: http://www.cdc.gov/tobacco/sgr/sgr_1998/sgr-min-sgr.htm.

For Further Information

Centers for Disease Control and Prevention
National Center for Chronic Disease Prevention and Health Promotion
Office on Smoking and Health
E-mail: tobaccoinfo@cdc.gov
Phone: 1-800-CDC-INFO

Media Inquiries: Contact CDC's Office on Smoking and Health press line at 770-488-5493.

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Page last reviewed 02/28/2007
Page last modified 02/28/2007

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