Federal Trade Commission today in its annual report on tobacco advertising and promotional spending said spending rose 1.2% to $4.9 billion in 1995, with most of the increase due to increased slotting fees and on-pack promotions ranging from coupons to giveaways. Those slotting fees and giveaways cost tobacco companies $1.35 billion. FTC said spending on distribution of specialty items such as T-shirts and bags dropped 28% to $665.2 million and spending on point of purchase dropped 24.4% to $259 million. Newspaper advertising dropped 20% to $19.1 million, while magazine ads decreased by a smaller amount.
Copyright August 1997, Crain Communications Inc.