Per cent of direct advertising, promotional and price discounting, and total cigarette and smokeless tobacco, marketing expenditures, select years*
| Categories | Cigarettes | Smokeless tobacco | |||||||||
| Years | 1975 | 1986 | 1998 | 2003 | 2009 | 2019 | 1986 | 1998 | 2002 | 2016 | 2019 |
| Direct advertising (%)† | 78.4 | 60.6 | 20.8 | 5.5 | 5.8 | 2.9 | 71.4 | 62.5 | 26.9 | 14.8 | 12.6 |
| Promotional allowances (%)‡ | 16.7 | 35.3 | 69.8 | 18.9 | 11.3 | 7.4 | 10.7 | 18.0 | 14.7 | 15.2 | 15.1 |
| Price discounting (%)ठ| 4.9 | 4.1 | 9.4 | 75.6 | 82.8 | 89.8 | 17.9 | 19.5 | 58.3 | 70.0 | 72.3 |
| Total marketing expenditures (in million 2019 dollars) | $2334 | $5558 | $10 758 | $21 088 | $10 167 | $7624 | $178 | $236 | $336 | $684 | $576 |
Source of data: FDA Cigarette Report, FDA Smokeless Tobacco Report.
*Select years were chosen based on representative years and major turning points in marketing allocations.
†Direct advertising includes newspapers, magazines, outdoor, direct mail, point of sale, sponsorship endorsements, company website, internet, telephone, audiovisual, social media and other advertising and merchandising.
‡Promotional allowances include allowances paid to wholesalers or retailers to facilitate the sale or placement, including payments for volume rebates, incentive payments, value-added services, promotional execution, and satisfaction of reporting requirements (also called retail value added), provision of branded and non-branded specialty items and promotional allowances (eg, buy two packs, get one free).
§Price discounts include payments paid to retailers or wholesalers to reduce the price of cigarettes to consumers, including off-invoice discounts, buydowns, voluntary price reductions and trade programmes, as well as coupons and free samples.
FDA, Food and Drug Administration.