Tobacco Industry Marketing

Cigarette and smokeless tobacco companies spend billions of dollars each year to market their products.^1,2

• In 2014, cigarette and smokeless tobacco companies spent more than $9 billion on advertising and promotional expenses in the United States alone.^1,2
  • Cigarette companies spent approximately $8.49 billion on cigarette advertising and promotion in 2014, down from $8.95 billion in 2013.¹
  • The five major U.S. smokeless tobacco manufacturers spent $600.8 million on smokeless tobacco advertising and promotion in 2014, an increase from $503.2 million spent in 2013.²

The money cigarette and smokeless tobacco companies spent in 2014 on U.S. marketing amounted to—

• Nearly $25 million each day^1,2
• More than $28 for every person (adults and children) in the United States per year (according to 2014 population estimate of 320,000,000)^1,3
• More than $227 per year for each U.S. adult smoker (based on 40 million adult smokers in 2014)^1,4

The following three categories totaled approximately $7.4 billion and accounted for 87% of all cigarette company marketing expenditures in 2014:¹

• Price discounts paid to retailers or wholesalers to reduce the price of cigarettes to consumers— nearly $6.8 billion
• Promotional allowances paid to cigarette retailers, such as payments for stocking, shelving, displaying, and merchandising particular brands—$260.3 million
• Promotional allowances paid to cigarette wholesalers, such as payments for volume rebates, incentive payments, value-added services, and promotions—$363.3 million

Marketing to Specific Populations

Youth and Young Adults

Scientific evidence shows that tobacco company advertising and promotion influences young people to start using tobacco.⁵

• Adolescents who are exposed to cigarette advertising often find the ads appealing.
• Tobacco ads make smoking appear to be appealing, which can increase adolescents’ desire to smoke.

The three most heavily advertised brands—Marlboro, Newport, and Camel—were the preferred brands of cigarettes smoked by adolescents (aged 12–17 years) and young adults (aged 18–25 years) during 2008–2010.⁵

Brand Preferences of Adolescents:⁵

• 46.2% preferred Marlboro
• 21.8% preferred Newport
• 12.4% preferred Camel
• 16.0% preferred other brands
• 3.5% preferred no usual brand

Brand Preferences of Young Adults:⁵

• 46.1% preferred Marlboro
• 21.8% preferred Newport
• 12.4% preferred Camel
• 15.2% preferred other brands
• 1.6% preferred no usual brand

Women

Women have been targeted by the tobacco industry, and tobacco companies have produced brands specifically for women. Marketing toward women is dominated by themes of social desirability and independence, which are conveyed by advertisements featuring slim, attractive, and athletic models.^6,7

Racial/Ethnic Communities

Advertisement and promotion of certain tobacco products appear to be targeted to members of racial/minority communities.

• Marketing to Hispanics and American Indians/Alaska Natives has included advertising and promotion of cigarette brands with names such as Rio, Dorado, and American Spirit.^7,8
• The tobacco industry has targeted African American communities in its advertisements and promotional efforts for menthol cigarettes. Strategies include:^5,7
  • Campaigns that use urban culture and language to promote menthol cigarettes
  • Tobacco-sponsored hip-hop bar nights with samples of specialty menthol cigarettes
  • Targeted direct-mail promotions

• Tobacco companies’ marketing to Asian Americans has included:^7,8
  • Sponsorship of Chinese and Vietnamese New Year festivals and other activities related to Asian/Pacific American Heritage Month
  • Heavy billboard and in-store advertisements in predominantly urban Asian American communities
  • Financial and in-kind contributions to community organizations
  • Support of Asian American business associations

References

1. Federal Trade Commission. Federal Trade Commission Cigarette Report for 2014.[PDF–508 KB]. Washington: Federal Trade Commission, 2016 [accessed 2016 Dec 19].
2. Federal Trade Commission. Federal Trade Commission Smokeless Tobacco Report for 2014.[PDF–563 KB]. Washington: Federal Trade Commission, 2016 [accessed 2016 Dec 19].
3. Census Bureau. Monthly Population Estimates for the United States: April 1, 2010 to December 1, 2016. Washington: U.S. Department of Commerce, Census Bureau, 2016 [accessed 2016 Dec 19].
4. Centers for Disease Control and Prevention. Current Cigarette Smoking Among Adults—United States, 2005–2014. Morbidity and Mortality Weekly Report 2014;64(44):1233-40 [accessed 2016 Dec 19].
5. U.S. Department of Health and Human Services. Preventing Tobacco Use Among Youth and Young Adults: A Report of the Surgeon General. Atlanta: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health, 2012 [accessed 2016 Dec 19].
6. U.S. Department of Health and Human Services. Women and Smoking: A Report of the Surgeon General. Atlanta: U.S. Department of Health and Human Services, Public Health Service, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health, 2001 [accessed 2016 Dec 19].
7. National Cancer Institute. The Role of the Media in Promoting and Reducing Tobacco Use. [PDF–6.51 MB]. Bethesda (MD): U.S. Department of Health and Human Services, National Institutes of Health, National Cancer Institute, 2008 [accessed 2016 Dec 19].
8. U.S. Department of Health and Human Services. Tobacco Use Among U.S. Racial/Ethnic Minority Groups—African Americans, American Indians and Alaska Natives, Asian Americans and Pacific Islanders, and Hispanics: A Report of the Surgeon General. Atlanta: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health, 1998 [accessed 2016 Dec 19].