The chairman of the Point of Purchase Advertising Institute today told the Senate Judiciary Committee that the global tobacco settlement would have significant impacts on the ad industry. David Schultz, VP-marketing for MCA, testified that the agreement would cost most outdoor companies 10% of their revenues nationally and some far more. Instead of restricting advertising, he urged increasing ads aimed at halting underage consumption. Duncan Thomas, representing National Association of Convenience Stores, took a similar approach in his testimony but also warned the pact could unfairly move purchasing from convenience stores to cigarette stores without affecting overall sales.
Copyright July 1997, Crain Communications Inc.