The bulk of the increased spending went for slotting fees and value-added promotions. The FTC said tobacco makers spent $8.24 billion in 1999, the latest year for which figures are available, with $3.54 billion or 43% of their spending going toward slotting fees, up from $2.88 billion in 1998. Retail value-added promotions, which can include three-packs-for-the-price-of-two packaging, increased to $2.56 billion from $1.56 billion.
While the pact forced tobacco companies to discontinue using billboards to market cigarettes, tobacco makers increased their advertising in magazines and newspapers. Newspaper spending in 1999 grew to $51.0 million from $29.4 million the previous year, while magazine spending grew to $377.4 million from $281.2 million.
Copyright March 2001, Crain Communications Inc.