The Federal Trade Commission, in its annual report on tobacco marketing, today said marketing spending on tobacco grew a healthy 10.8% to $5.55 billion in 1997. But it said most of the boost was the result of increased payment of slotting fees, increased point of purchase and a major hike in multipack promotions. Slotting fees for prime positioning at stores grew 9% to $2.4 billion. Actual media spending dropped less than 1% to $575.7 million, with increases in newspaper and out-of-home ad spending balanced by a major decrease in magazine ads. The report also said that distribution of branded specialty items decreased. Because the FTC report lags behind industry developments, tobacco companies' agreement with state attorneys general to drop out-of-home ads isn't reflected.
Copyright July 1999, Crain Communications Inc.