The Federal Trade Commission on Wednesday reported that tobacco marketing expenditures dropped nearly 20% in 1994, citing a major decrease in couponing and "buy one get one free" deals. FTC said tobacco marketers spent $4.83 billion in 1994, down from $6.03 billion a year earlier.
Philip Morris in 1993 cut the price of Marlboro and its other premium brands by 40 cents and reduced couponing; the reduction was not fully reflected until 1994. Most traditional advertising spending measured by FTC rose in 1994, with the exception of newspaper advertising, which dropped to $24 million from $36 million. Expenditures for promotional allowances and specialty item distribution rose substantially during the period, FTC said.