Federal Trade Commission

Cigarette Report

for 2022

ISSUED: 2023
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I. INTRODUCTION

This report is the latest in a series on cigarette sales, advertising, and promotion that the

Federal Trade Commission (“Commission”) has prepared since 1967.1

The tables appended to this report provide information on domestic cigarette sales and

advertising and promotional activity by the largest manufacturers.2 The 2022 sales and expenditure

information in the tables was compiled from data contained in special reports submitted to the

Commission pursuant to compulsory process by the parent companies of the major manufacturers

of cigarettes sold in the United States: Altria Group, Inc.; ITG Holdings USA Inc.; Reynolds

American, Inc.; and Vector Group Ltd.3

The total number of cigarettes sold decreased from 2021 to 2022, and marketing

1 The sales, advertising, and promotion information reported does not pertain to heated, noncombusted cigarettes. The Commission has collected information regarding such products. No

companies sold or marketed such products in 2022. The 2021 data cannot be reported because only

one company sold such products, and the Commission does not include such information in order to

avoid potential disclosure of individual company data.

Nor does this report contain information regarding the sales, advertising, or promotion of

e-cigarettes. E-cigarettes are not “cigarettes” under the statutory definition of a “cigarette” — “a roll

of tobacco wrapped in paper or in any substance not containing tobacco” or in a “substance

containing tobacco which ... is likely to be offered to, or purchased by, consumers as a cigarette.”

21 U.S.C. § 387. However, the Commission has separately been collecting information regarding

the sales, advertising, and promotion of e-cigarettes from the leading domestic e-cigarette

manufacturers and publishing reports based upon that data, the most recent of which was the

Federal Trade Commission E-Cigarette Report for 2019-2020, www.ftc.gov/reports/e-cigarettereport-2019-2020.

2 The data contained in the tables appended to this report are also in an electronic spreadsheet

available at: https://www.ftc.gov/cigarettedata.

The advertising and promotional expenditure figures contained in this report and in the

electronic spreadsheet are in nominal dollars and have not been adjusted for inflation.

3 The number and identity of the companies reporting cigarette data has varied over the many

years that the Commission has issued these reports.

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expenditures decreased over that same time period. The market share of menthol cigarettes has

more than doubled over the years and was 36% in 2022.

II. TOTAL SALES AND ADVERTISING AND PROMOTIONAL EXPENDITURES

The total number of cigarettes reported sold or given away by the major manufacturers in

2022, 173.5 billion units, represented a decrease of 16.7 billion units (8.8 percent) from 2021.

Advertising and promotional expenditures decreased from 2021 to 2022, declining from

$8.06 billion to $8.01 billion. The largest single category of these expenditures in 2022 was price

discounts paid to cigarette retailers to reduce the price of cigarettes to consumers, which accounted

for $1.14 billion (71.7 percent of total advertising and promotional expenditures).

III. CIGARETTES SOLD AND GIVEN AWAY

Tables 1A and 1B display the manufacturers’ annual cigarette sales to wholesalers and

retailers. Table 1B displays the total number of cigarettes sold and given away each year from 2001

through 2022. In 2022, the major cigarette manufacturers sold 173.5 billion cigarettes domestically,

down from 190.2 billion in 2021. In 2022, the companies reported giving away 28,000 cigarettes,

down from the 51,000 cigarettes they gave away in 2021.4

IV. ADVERTISING AND PROMOTIONAL EXPENDITURES BY CATEGORY

Tables 2A through 2H show the annual expenditures on cigarette advertising and promotion

for the years 1970, and 1975 through 2022.5 These tables list the amounts spent on the different

4 Cigarettes given away include all cigarettes distributed for free, whether through sampling,

coupons for free product, “buy 3 packs, get 1 free” type offers, consumer research programs, or

otherwise, as long as those cigarettes were not reported as sold.

For years prior to 2001, the Commission required the manufacturers to report the number of

cigarettes they sold but not the number they gave away. It is possible that in those earlier years,

some manufacturers included in their sales figures some cigarettes that were actually given away.

5 The expenditure data reported in these tables were not collected in their present form until

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types of media advertising (e.g., magazines) and sales promotion activities (e.g., distribution of

coupons), and also give the percentages of the total amount spent for each of the various types of

advertising and promotion.

Table 2H shows that overall, the major manufacturers spent $8.01 billion on cigarette

advertising and promotion in 2022, a decrease from the $8.06 billion spent in 2021.6

The Commission is not reporting the amount spent on newspaper advertising in 2022

because, as in each year since 2012, only one company reported spending in that category.7 The

companies reported spending $4.9 million on magazine advertising in 2022, a decrease from the

$11.3 million they spent in 2021. Spending on “outdoor” advertising increased from $2.2 million in

2021 to $3.1 million in 2022.8 Spending on point-of-sale materials (ads posted at the retail location

1975, at which time the Commission asked the companies to re-report their 1970 expenditures

using the then-new advertising and promotional expenditure categories.

The reported figures include all advertising and promotional expenditures related to

cigarettes, regardless of whether such expenditures would constitute “commercial speech” or

would be protected from law enforcement action under the First Amendment. They do not

include the costs of employing full-time company employees or any overhead expenses

attributable to the activities of such company employees.

6 Definitions of the 2022 advertising and promotional expenditure categories appear in the

Appendix to this report.

7 If only one company reported spending money on a particular type of advertising or promotion

in a year, that category appears as “N/A” in the table; the expenditures in that category are included

in the “Other” category, to avoid potential disclosure of individual company data. For this reason,

the Commission is not separately reporting the amounts spent in 2022 on newspaper advertising,

promotional allowances paid other than to retailers or wholesalers, sampling, consumer engagement

at retail locations open to underage individuals, or retail-value-added promotions involving noncigarette items.

8 Since 2002, “outdoor” advertising has been defined to mean billboards; signs and placards in

arenas, stadiums, and shopping malls (whether they are open air or enclosed); and any other

advertisements placed outdoors, regardless of their size, including those on cigarette retailer

property. Before 2002, “outdoor” advertising was not precisely defined and it was not clear that

signs in arenas, stadiums, shopping malls, or on retailer property were to be reported in this

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but excluding outdoor ads on retailer property), which was $49.1 million in 2021, decreased to

$37.3 million in 2022. The companies reported spending $12.6 million for direct mail advertising in

2022, down from $19.1 million in 2021.9

In 2022, the companies reported spending $5.74 billion on price discounts (payments made

to reduce the price of cigarettes to consumers) paid to retailers and $1.14 billion on price discounts

paid to wholesalers.10 In 2021, expenditures in those categories were $6.01 billion and $917.3

million, respectively. Retail and wholesale price discounts were the two largest expenditure

categories in 2022, representing a combined 85.9 percent of total expenditures (71.7 percent and

14.2 percent, respectively).

Spending on promotional allowances (intended to facilitate the sale or placement of

cigarettes) paid to cigarette retailers (e.g., payments for stocking, shelving, displaying, and

merchandising brands, volume rebates, and incentive payments) increased from $235.4 million in

2021 to $247.2 million in 2022. Spending on promotional allowances paid to cigarette wholesalers

(e.g., payments for volume rebates, incentive payments, value-added services, and promotional

executions) increased from $487.1 million in 2021 to $577.5 million in 2022. The Commission is

not reporting the amount spent on promotional allowances paid to persons other than retailers or

category.

Starting with its orders for 2014, the Commission ceased collecting data on transit advertising

(advertising on or in vehicles, bus stops, taxi stands, or transportation facilities) because the

recipients of the orders had not reported expenditures on transit advertising since 2000.

9 The companies are instructed to report the cost of coupons sent by direct mail in the coupons

category, not as direct mail advertising.

10 Examples of price discounts include off-invoice discounts, buy downs, and voluntary price

reductions.

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wholesalers in 2022 because, as in each year since 2012, only one company reported spending in

that category.

When price discounts and promotional allowances paid to cigarette retailers and wholesalers

are combined, they total $7.7 billion, and account for 96.2 percent of all 2022 advertising and

promotional expenditures.

The Commission is not reporting the amount spent in 2022 on sampling because only one

company reported spending in that category. In 2021, the companies reported spending $4,000 on

cigarette sampling.11

In 2022, $56.0 million was spent on non-branded specialty item distribution in connection

with the marketing or promotion of cigarettes, an increase from the $43.5 million spent in 2021.12

11 Although regulations promulgated by the Food and Drug Administration pursuant to the Family

Smoking Prevention and Tobacco Control Act (“Tobacco Control Act”) prohibited sampling

effective in mid-2010, see 21 C.F.R. § 1140.16(d), companies have continued to report sampling

expenditures because the Commission defines “sampling” to include the distribution of cigarettes

for consumer testing or evaluation outside the company’s facility.

The Commission’s compulsory process orders for 2017 clarified that expenditures associated

with coupons for free cigarettes distributed during consumer engagement activities should be

reported as “sampling,” not consumer engagement.

12 Specialty item distribution includes the practice of selling or giving to consumers noncigarette items, such as T-shirts, caps, sunglasses, key chains, lighters, and sporting goods. When

the distribution of such items is combined with the sale of cigarettes, such as when a noncigarette item is blister-packed to packages of cigarettes, the associated expenditures are reported

under retail-value-added.

Pursuant to the 1998 Tobacco Master Settlement Agreement with the attorneys general of 46

states, major tobacco companies (including all those from which the Commission then collected

cigarette advertising and promotional data) agreed not to distribute branded non-tobacco

promotional items. Subsequently, the distribution of such items was also prohibited by

regulations promulgated pursuant to the Tobacco Control Act. See 21 C.F.R. § 1140.34(a).

Nevertheless, due to misunderstandings, some of the companies misreported for a number of

years that they incurred expenses for branded specialty item distribution. Because all such

expenditures were misreported, the Commission has deleted the branded specialty item

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The Commission is not reporting the amount spent in 2021 or 2022 on consumer

engagement in retail locations open to underage individuals (e.g., convenience stores) because each

year only one company reported spending in that category. They reported spending $2.2 million in

2022 on consumer engagement in adult-only facilities, a decrease from the $10.0 million spent in

2021.

For 2022, the companies reported that they spent no money on public entertainment events

that took place in adult-only facilities (e.g., sponsorship of bar nights or concerts) and displayed the

name or logo of a company’s cigarettes or otherwise referred to cigarettes.13 In 2021, one company

reported spending in that category and the Commission did not report the amount spent.

For 2015 through 2022, the companies reported that they made no expenditures on public

entertainment events taking place outside of adult-only facilities.

As they have since 2010, all reporting companies stated that they spent no money on

sponsorships in 2022.14 Since 1989, all the companies have stated that they spent no money on

distribution category from Tables 2D through 2G and reallocated the expenditures in that

category pursuant to instructions from the individual companies. Where the companies were

unable to properly reallocate the expenditures, they were moved to the “Other” expenditure

category.

13 The Commission’s order for 2016 data clarified that such events must include actual

entertainment, as opposed to simply consumer engagement. The Commission learned that the

companies had been reporting consumer engagement in adult-only facilities under this adult-only

public entertainment category even when such activities did not entail any entertainment. Also, at

some point, the companies stopped sponsoring any entertainment in adult-only facilities. We are

unable to distinguish prior expenditures on adult-only entertainment from those on adult-only

consumer engagement.

14 Regulations promulgated pursuant to the Tobacco Control Act and effective since mid-2010

prohibit tobacco-brand sponsorships of “any athletic, musical, artistic, or other social or cultural

event, or any entry or team in any event.” 21 C.F.R. § 1140.34(c).

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endorsements and testimonials.15

The companies reported spending $89.5 million in 2022 on coupons to reduce the retail cost

of cigarettes, a decrease from the $152.3 million spent in 2021.16

Retail-value-added expenditures are the costs associated with offers such as “buy one, get

one free” and “buy three, get a free T-shirt,” where the bonus is distributed to consumers at retail

when the cigarettes are purchased. The companies stated that they spent no money in 2021 or 2022

on retail-value-added involving bonus cigarettes.

Each year from 2010 until 2015, the companies reported spending no money on retail-valueadded promotions involving non-cigarette items. In 2016, the Commission expanded this category

to include discounts such as “buy two, save 20 cents per gallon of gasoline.” The Commission is not

reporting the amounts spent on retail-value-added expenditures for promotions involving free or

discounted non-cigarette items in 2022 because, as in each year since 2017, only one company

reported spending in that category.

In 2022, the companies reported spending $9.8 million on advertising on company websites,

an increase from the $7.8 million they reported spending in 2021. In 2022, the companies reported

spending $1.4 million on Internet advertising other than on company websites, down from the $3.3

million they reported spending in 2021.

15 The Commission’s compulsory process orders for 2017 clarified that the “endorsements”

category, which covers product placements, includes product placements in video games.

16 When coupons are distributed for free cigarettes and no purchase is required to redeem them,

such activities are reported as “sampling,” not as “coupons.”

The Commission’s compulsory process orders for 2017 clarified that expenditures associated

with coupons that reduce the retail cost of cigarettes should be reported in the “coupon” category,

regardless of how the coupons are distributed or redeemed.

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The companies reported making no expenditures on telephone advertising in 2021 or 2022.

This category includes costs associated with telemarketing calls or the operation of incoming

telephone lines for consumers to participate in promotions or hear pre-recorded product messages.

Since 2013, the companies have reported that they made no expenditures on audio-visual

advertising.

The companies reported that they made no expenditure on “social media marketing on Web

sites or other online services or communities, including but not limited to social networking sites,

microblogging sites, content-sharing sites, and blogs” in 2022, as they had each year since 2009.

The Commission also requires the cigarette manufacturers to report the amounts they spent

on advertising and promotion in connection with sports and sporting events.17 Since 2017, the

companies have reported spending nothing connected with or related to sports or sporting events.

Since 2001, the Commission has required the manufacturers to report expenditures on

advertisements directed to youth or their parents that are intended to reduce youth smoking. These

expenditures have ranged from a high of $74.2 million in 2002 to a low of $1.1 million in 2020.18

17 The Commission’s question about “sports and sporting events” has always asked the companies

to report expenditures for: (1) the sponsoring, advertising, or promotion of sports or sporting events;

support of an individual, group, or sports team; and purchase of or support for equipment, uniforms,

sports facilities, and/or training facilities; (2) advertising in the name of the cigarette company or

any of its brands in a sports facility, on a scoreboard, or in conjunction with the reporting of sports

results; and (3) functional promotional items (clothing, hats, etc.) connected with a sporting event.

The question about sports and sporting events is separate from, and duplicative of, the reporting of

the individual advertising and promotion categories.

The Commission’s compulsory process orders for 2015 clarified that the companies should

include expenditures on cigarette sampling in an adult-only facility on the grounds or in the parking

lot of a sports facility. In 2016, the orders further clarified that the companies should also report

“consumer engagement” on the grounds or parking lot of a sports facility.

18 These expenditures are not included in the cigarette advertising and promotional

expenditures reported in Tables 2C through 2H.

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The companies reported spending $1.8 million on such advertisements in 2022. These figures do

not include contributions to third parties that engage in such programs.

The cigarette manufacturers reported that neither they, nor anyone acting on their behalf,

paid money or gave any other form of compensation in connection with the production or filming of

any motion picture, television show, or video game in 2022, or paid money or any other form of

compensation to anyone engaged in product placement in motion pictures, television shows, or

video games. The companies also reported that neither they nor anyone acting on their behalf

sought, solicited, granted approval, or otherwise gave permission for the appearance of any cigarette

product or cigarette brand imagery in any motion picture, television show, or video game. The

Commission asked the companies to report whether they or anyone acting on their behalf: (1)

sought, solicited, granted approval, or otherwise gave permission for the appearance of any cigarette

product or cigarette brand imagery in any video appearing on the Internet; or (2) engaged in social

media marketing that promoted any cigarette brand or variety or used cigarette brand imagery. In

response, only two companies reported having video advertising on company-operated cigarette

brand websites and one reported allowing the posting of user-generated content on such websites.

The expenditure data reported in Tables 2A through 2G were not collected in their present

form until 1975. Therefore, Table 3 reports advertising expenditures from 1963 through 1974.

V. TAR YIELDS, FILTERS, LENGTH, AND FLAVOR

Tables 4A and 4B give the domestic market shares of cigarettes with tar yields of 15 mg or

less among the major manufacturers for the years 1967 through 2016. The data for the years since

1979 are further broken down into sub-categories according to tar yields (e.g., 3 mg or less, 6 mg or

less, etc.), and the sub-categories are presented cumulatively. The Commission ceased collecting tar

yield data for years after 2016. The Commission also notes that its compulsory process orders

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requesting data for 2011 through 2016 required the companies only to report tar yield data that they

had available and did not require them to conduct testing. Consequently, market share comparisons

within those years or to previous years might not be reliable.

As shown in Tables 5A and 5B, filtered cigarettes have dominated the market among the

major manufacturers since the Commission began collecting this information in 1963, when they

accounted for 58% of the market among the then-major manufacturers. Filtered cigarettes accounted

for 99.8 percent of the market among the major manufacturers in 2022.

Tables 6A and 6B provide the share of the various cigarette length categories. The King size

(79-88 mm) category continues to be the biggest seller, with 56 percent of the market among the

major manufacturers in 2022. This category is followed by the Long (94-101 mm) group, with 41

percent.

Tables 7A and 7B give the market share of menthol and non-menthol cigarettes. In 2022,

menthol cigarettes were 36 percent of the market among the major manufacturers, while nonmenthols were 63 percent.

Table 8A shows the percentage of cigarettes that disclosed both tar and nicotine yields on

their packs during the years 1994 through 2001; Table 8B shows the percentage that disclosed tar

yields from 2002 to 2011. From 2008 to 2016, no major manufacturer disclosed tar yields on its

cigarette packs. The Commission has ceased asking about on-pack tar or nicotine yield disclosures.

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TABLE 1A

TOTAL DOMESTIC CIGARETTE UNIT SALES (1963-2000)

(IN BILLIONS OF INDIVIDUAL CIGARETTES)

TOTAL SALES

REPORTED BY UNIT CHANGE % CHANGE USDA CIGARETTE

CIGARETTE FROM PRIOR FROM PRIOR CONSUMPTION

YEAR MANUFACTURERS* YEAR YEAR ESTIMATES

1963 516.5 – – 523.9

1964 505.0 (11.5) (2.2) 511.2

1965 521.1 16.1 3.2 528.7

1966 529.9 8.8 1.7 541.2

1967 535.8 5.9 1.1 549.2

1968 540.3 4.5 0.8 545.7

1969 527.9 (12.4) (2.3) 528.9

1970 534.2 6.3 1.1 536.4

1971 547.2 13.0 2.4 555.1

1972 561.7 14.5 2.7 566.8

1973 584.7 23.0 4.1 589.7

1974 594.5 9.8 1.7 599.0

1975 603.2 8.7 1.5 607.2

1976 609.9 6.7 1.1 613.5

1977 612.6 2.7 0.4 617.0

1978 615.3 2.7 0.4 616.0

1979 621.8 6.5 1.1 621.5

1980 628.2 6.4 1.0 631.5

1981 636.5 8.3 1.3 640.0

1982 632.5 (4.0) (.6) 634.0

1983 603.6 (28.9) (4.6) 600.0

1984 608.4 4.8 0.8 600.4

1985 599.3 (9.1) (1.5) 594.0

1986 586.4 (12.9) (2.2) 583.8

1987 575.4 (11.0) (1.9) 575.0

1988 560.7 (14.7) (2.6) 562.5

1989 525.6 (35.1) (6.3) 540.0

1990 523.7 (1.9) (.4) 525.0

1991 510.9 (12.8) (2.4) 510.0

1992 506.4 (4.5) (.9) 500.0

1993 461.4 (45.0) (8.9) 485.0

1994 490.2 28.8 6.2 486.0

1995 482.3 (7.9) (1.6) 487.0

1996 484.1 1.8 0.4 487.0

1997 478.6 (5.5) (1.1) 480.0

1998 458.6 (20.1) (4.2) 465.0

1999 411.3 (47.2) (10.3) 435.0

2000 413.9 2.6 0.6 430.0

*Cigarettes sold by manufacturers to wholesalers and retailers within the U.S. and to armed forces personnel stationed outside the

U.S.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE 1B

TOTAL DOMESTIC CIGARETTE UNITS SOLD AND GIVEN AWAY (2001-2022)

(IN BILLIONS OF INDIVIDUAL CIGARETTES)

UNIT PERCENT

CHANGE IN CHANGE IN

TOTAL NUMBER SOLD (AND SOLD (AND

SOLD AND GIVEN GIVEN GIVEN USDA

UNITS AWAY AS REPORTED AWAY) AWAY) CIGARETTE

UNITS GIVEN BY FROM PRIOR FROM PRIOR CONSUMPTION

SOLD* AWAY** MANUFACTURERS YEAR*** YEAR*** ESTIMATES

2001 398.3 3.9 402.2 – – 425.0

2002 376.4 11.1 387.4 (14.8) (3.7) 415.0

2003 360.5 7.1 367.6 (19.8) (5.1) 400.0

2004 361.3 2.1 363.4 (4.2) (1.1) 388.0

2005 351.6 3.0 354.6 (8.8) (2.4) 376.0

2006 343.3 7.2 350.5 (4.1) (1.2) 371.0

2007 337.7 5.0 342.8 (7.7) (2.2)  

2008 320.0 2.7 322.6 (20.2) (5.9) ** **

2009 290.6 0.11 290.7 (31.9) (9.9)  

2010 282.9 0.052 282.9 (7.8) (2.7) ** **

2011 274.4 N/A N/A (8.5) (3.0)  

2012 268.4 N/A N/A (6.0) (2.2) ** **

2013 255.2 N/A N/A (13.1) (4.9)  

2014 254.7 N/A N/A (0.5) (0.2) ** **

2015 244.2 N/A N/A (10.5) (4.1)  

2016 240.5 0.0078 240.5 (3.7) (1.5) ** **

2017 229.1 N/A N/A (11.4) (4.7)  

2018 216.9 N/A N/A (12.2) (5.3) ** **

2019 202.9 N/A N/A (14.0) (6.5)  

2020 203.7 0.000063 203.7 0.8 0.4 ** **

2021 190.2 0.000051 190.2 (13.5) (6.6)  

2022 173.5 0.000028 173.5 (16.7) (8.8) ** **

* Cigarettes sold by manufacturers to wholesalers and retailers within the U.S. and to armed forces personnel stationed outside

the U.S.

** Cigarettes given away within the U.S. and to armed forces personnel stationed outside the U.S. Prior to 2001, the

Commission did not ask about cigarettes given away, although some cigarettes given away might have been reported as sold.

*** For 2002 through 2010, the changes reported are cigarettes sold and given away, combined. For 2011 through 2020, the

changes reported are in cigarettes sold.

**** USDA ceased reporting these data.
 

 

 

 

 

 

TABLE 2A

DOMESTIC CIGARETTE ADVERTISING AND PROMOTIONAL EXPENDITURES FOR YEARS 1970, 1975-1985 (DOLLARS IN THOUSANDS)*

1970 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985

Newspapers $14,026

3.9%

$104,460

21.3%

$155,808

24.4%

$190,677

24.5%

$186,947

21.4%

$240,978

22.2%

$304,380

24.5%

$358,096

23.1%

$282,897

15.8%

$200,563

10.6%

$193,519

9.2%

$203,527

8.2%

Magazines $50,018

13.9%

$131,199

26.6%

$148,032

23.2%

$173,296

22.2%

$184,236

21.1%

$257,715

23.8%

$266,208

21.4%

$291,227

18.8%

$349,229

19.5%

$388,365

20.4%

$425,912

20.3%

$395,129

16.0%

Outdoor $7,338

2.0%

$84,329

17.2%

$102,689

16.1%

$120,338

15.4%

$149,010

17.0%

$162,966

15.0%

$193,333

15.6%

$228,081

14.7%

$266,925

14.9%

$295,226

15.5%

$284,972

13.6%

$300,233

12.1%

Transit $5,354

1.5%

$10,852

2.2%

$19,341

3.0%

$21,530

2.8%

$22,899

2.6%

$21,151

2.1%

$26,160

2.0%

$21,931

1.4%

$24,135

1.3%

$26,652

1.4%

$25,817

1.2%

$33,136

1.3%

Point-of-Sale $11,663

3.2%

$35,317

7.2%

$44,176

6.9%

$46,220

5.9%

$57,384

6.6%

$66,096

6.1%

$79,799

6.4%

$98,968

6.4%

$116,954

6.5%

$170,059

8.9%

$167,279

8.0%

$142,921

5.8%

Promotional Allowances $33,789

9.4%

$72,018

14.7%

$82,523

12.9%

$108,227

13.9%

$125,148

14.3%

$137,111

12.7%

$179,094

14.4%

$229,077

14.8%

$272,269

15.2%

$366,153

19.3%

$363,247

17.3%

$548,877

22.2%

Sampling $11,775

3.3%

$24,196

4.9%

$40,390

6.3%

$47,683

6.1%

$47,376

5.4%

$64,286

5.9%

$50,459

4.1%

$81,522

5.3%

$141,178

7.9%

$125,968

6.6%

$148,031

7.1%

$140,565

5.7%

Specialty Item Distribution $5,652

2.6%

$10,088

2.1%

$20,030

3.1%

$35,797

4.6%

$48,281

5.5%

$62,029

5.7%

$69,248

5.6%

$115,107

7.5%

$95,246

5.3%

$127,186

6.6%

$140,431

6.7%

$211,429

8.5%

Public Entertainment $544

0.2%

$8,484

1.7%

$7,946

1.3%

$9,538

1.2%

$11,590

1.3%

$10,783

1.0%

$16,914

1.4%

$37,423

2.4%

$63,168

3.5%

$76,648

4.0%

$59,988

2.9%

$57,581

2.3%

Other** $220,841

61.1%

$10,311

2.0%

$18,182

2.8%

$26,157

3.4%

$42,100

4.8%

$60,310

5.6%

$56,694

4.6%

$86,226

5.6%

$181,813

10.1%

$123,951

6.5%

$286,035

13.7%

$443,043

17.9%

Total $361,000 $491,254 $639,117 $779,463 $874,972 $1,083,425 $1,242,288 $1,547,658 $1,793,814 $1,900,771 $2,095,231 $2,476,441

* Because of rounding, sums of percentages may not equal 100 percent.

** Includes TV and Radio advertising expenditures of $207,324,000 and $12,492,000, respectively, for 1970. Broadcast advertising was banned after January 1, 1971.

Expenditures for direct mail, endorsements, testimonials, and audio-visual are included in the “Other” category to avoid potential disclosure of individual company data.
 

 

 

 

 

 

 

 

 

 

TABLE 2B

DOMESTIC CIGARETTE ADVERTISING AND PROMOTIONAL EXPENDITURES FOR YEARS 1986-1995 (DOLLARS IN THOUSANDS)*

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Newspapers $119,629

5.0%

$95,810

3.7%

$105,783

3.2%

$76,993

2.1%

$71,174

1.8%

$48,212

1.0%

$35,467

0.7%

$36,220

0.6%

$24,143

0.5%

$19,122

0.4%

Magazines $340,160

14.3%

$317,748

12.3%

$355,055

10.8%

$380,393

10.5%

$328,143

8.2%

$278,110

6.0%

$237,061

4.5%

$235,253

3.9%

$251,644

5.2%

$248,848

5.1%

Outdoor $301,822

12.7%

$269,778

10.5%

$319,293

9.7%

$358,583

9.9%

$375,627

9.4%

$386,165

8.3%

$295,657

5.7%

$231,481

3.8%

$240,024

5.0%

$273,664

5.6%

Transit $34,725

1.5%

$35,822

1.4%

$44,379

1.4%

$52,294

1.4%

$60,249

1.5%

$60,163

1.3%

$53,293

1.0%

$39,117

0.6%

$29,323

0.6%

$22,543

0.5%

Point-of-Sale $135,541

5.7%

$153,494

5.9%

$222,289

6.8%

$241,809

6.7%

$303,855

7.6%

$344,580

7.4%

$366,036

7.0%

$400,943

6.6%

$342,650

7.1%

$259,035

5.3%

Direct Mail $187,057

7.9%

$187,931

7.3%

$42,545

1.3%

$45,498

1.3%

$51,875

1.3%

$65,002

1.4%

$34,345

0.7%

$31,463

0.5%

$31,187

0.7%

$34,618

0.7%

Promotional Allowances $630,036

26.4%

$702,430

27.2%

$879,703

26.9%

$999,843

27.6%

$1,021,427

25.6%

$1,156,280

24.9%

$1,514,026

28.9%

$1,557,635

25.8%

$1,678,917

34.7%

$1,865,657

38.1%

Sampling $98,866

4.1%

$55,020

2.1%

$74,511

2.3%

$57,771

1.6%

$100,893

2.5%

$56,970

1.2%

$49,315

0.9%

$40,202

0.7%

$6,974

0.1%

$13,836

0.3%

Specialty Item Distribution $210,128

8.8%

$391,351

15.2%

$190,003

5.8%

$262,432

7.3%

$307,037

7.7%

$184,348

4.0%

$339,997

6.5%

$755,780

12.5%

$850,810

17.6%

$665,173

13.6%

Public Entertainment $71,439

3.0%

$71,389

2.8%

$88,072

2.7%

$92,120

2.5%

$125,094

3.1%

$118,622

2.6%

$89,739

1.7%

$84,276

1.4%

$81,292

1.7%

$110,669

2.3%

Endorsements & Testimonials $384

0.0%

$376

0.0%

$781

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

Coupons & Retail-Value-Added ** ** $874,127

26.7%

$959,965

26.5%

$1,183,798

29.6%

$1,882,905

40.4%

$2,175,373

41.6%

$2,559,387

42.4%

$1,248,896

25.8%

$1,348,378

27.5%

Other*** $252,570

10.0%

$299,355

11.6%

$78,366

2.4%

$89,290

2.5%

$62,917

1.6%

$68,758

1.5%

$41,608

0.8%

$63,680

1.2%

$47,672

1.0%

$33,680

0.7%

Total $2,382,357 $2,580,504 $3,274,853 $3,616,993 $3,992,008 $4,650,114 $5,231,917 $6,035,437 $4,833,532 $4,895,223

Sports & Sporting Events**** $84,000 $97,900 $108.700 $102,000 $81,900 $78,000 $76,000 $83,000

* Because of rounding, sums of percentages may not equal 100 percent.

** Prior to 1988, the Commission did not specifically collect information on Coupons & Retail-Value-Added.

*** Expenditures for audio-visual are included in the “Other” category to avoid potential disclosure of individual company data.

****These Sports & Sporting Event Expenditures are rounded to the nearest million dollars, except for 1989, 1990, and 1992, which are rounded to the nearest hundred thousand dollars.
TABLE2C 

DOMESTIC CIGARETTE ADVERTISING AND PROMOTIONAL EXPENDITURES 

FOR YEARS 1996-2001 (DOLLARS IN THOUSANDS)* 

1996 1997 1998 1999 2000 2001 

Newspapers 

Magazines 

Outdoor 

Transit 

Point-of-Sale 

Direct Mail 

Promotional Allowances 

Sampling 

Specialty Item Distribution 

Public Entertainment 

Endorsements & Testimonials 

Coupons 

Retail-Value-Added 

Intemet 

Other*""" 

Total 

Spo11s & Sport.ing Events**** 

$14,067 

0.3% 

$243,046 

4.8% 

$292,261 

5.7% 

$28,865 

0.6% 

$252,619 

4.9% 

$38,703 

0.8% 

$2,150,838 

42.1% 

$15,945 

0.3% 

$544,345 

10.7% 

$171,177 

3.4% 

$0 

0.0% 

$1 ,308,708° 

25.6o/c 

$432 

0.0% 

$46,696 

0.9% 

$5,107,700 

$85,000 

$16,980 

0.3% 

$29,444 

0.4% 

$236,950 

4.2% 

$281,296 

4.2% 

$295,334 

5.2% 

$294,721 

4.4% 

$26,407 

0.5% 

$40,158 

0.6% 

$305,360 

5.4% 

$290,739 

4.3% 

$37,310 

0.7% 

$57,772 

0.9% 

$2,438,468 

43.1% 

$2,878,919 

42.8% 

$22,065 

0.4% 

$14,436 

0.2% 

$512,602 

9.6% 

$355,835 

5.3% 

$195,203 

3.4% 

$248,536 

3.7% 

$0 

0.0% 

$0 

0.0% 

$552,550 

9.8% 

$624,199 

9.3% 

$970,363 

17.1% 

$1 ,555,391 

23.1% 

$215 

0.0% 

$125 

0.0% 

$50,207 

1.0% 

$61,584 

0.9% 

$5,660,014 $6,733,157 

$121 ,400 $125,600 

$50,952 

0.6% 

$51 ,652 

0.5% 

$31 ,676 

0.3% 

$377,364 

4.6% 

$294,916 

3.1% 

$172,853 

1.5% 

$53,787 

0.7% 

$9,262 

0.1% 

$8,241 

0.1% 

$5,573 

0.1% 

$4 

0.0% 

$0 

0.0% 

$329,429 

4.0% 

$347,038 

3.6% 

$284,319 

2.5% 

$94,610 

1.2% 

$92,902 

1.0% 

$133,947 

1.2% 

$3,542,950 

43.0% 

$3,913,997 

40.8% 

$4,452,709 

39.7% 

$33,711 

0.4% 

$22,330 

0.2% 

$17,175 

0.2% 

$335,680 

4.1% 

$327,826 

3.4% 

$333,394 

3.0% 

$267,379 

3.3% 

$309,610 

3.2% 

$312,366 

2.8% 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

$531 ,004 

6.5% 

$705,299 

7.4% 

$602,110 

5.4% 

$2,559,883 

31.1% 

$3,453,446 

36.0% 

$4,761 ,792 

42.5% 

$651 

0.0% 

$949 

0.0% 

$841 

0.0% 

$54,658 

0.7% 

$63,395 

0.7% 

$104,797 

0.9% 

$8,237,631 $9,592,627 $11,216,220 

$113,600 $127,900 $110,600 

* Because of rounding, sums ofpercentages may not equal 100 percent. 

** Prior to 1997, Coupons and Retail-Value-Added were repo,ted as a single category. 

*** Expenditures for audio-visual are included in the "Other" catego,y to avoid potential disclosure ofindividual company 

data. 

**** These Spo11s & Sporting Event Expenditures are rounded to the nearest hundred thousand dollars, except for 1996, which is 

rounded to the nearest million dollars. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE 2D

DOMESTIC CIGARETTE ADVERTISING AND PROMOTIONAL EXPENDITURES FOR YEARS 2002-2005

(DOLLARS IN THOUSANDS)*

2002 2003 2004 2005

Newspapers $25,538 $8,251 $4,913 $1,589

0.2% 0.1% 0.0% 0.0%

Magazines $106,853 $156,394 $95,700 $44,777

0.9% 1.0% 0.7% 0.3%

Outdoor $24,192 $32,599 $17,135 $9,821

0.2% 0.2% 0.1% 0.0%

Transit $0 $0 $0 $0

0.0% 0.0% 0.0% 0.0%

Point-of-Sale $260,902 $165,573 $163,621 $182,192

2.1% 1.1% 1.2% 1.4%

Direct Mail $111,319 $92,978 $93,836 $51,844

0.9% 0.6% 0.7% 0.0%

Price Discounts $7,873,835 $10,808,239 $10,932,198 $9,776,069

63.2% 71.4% 77.3% 74.6%

Promotional Allowances – Retailers $1,333,097 $1,229,327 $542,212 $435,830

10.7% 8.1% 3.8% 3.3%

Promotional Allowances – Wholesalers $446,327 $683,067 $387,757 $410,364

3.6% 4.5% 2.7% 3.1%

Promotional Allowances –Other $2,767 $2,786 $1,323 $1,493

0.0% 0.0% 0.0% 0.0%

Sampling $28,777 $17,853 $11,649 $17,211

0.2% 0.1% 0.0% 0.1%

Specialty Item Distribution - Non-Branded $174,201 $254,956 $216,577 $225,279

1.4% 1.7% 1.5% 1.7%

Public Entertainment – Adult-Only $219,016 $150,889 $140,137 $214,075

1.8% 1.0% 1.0% 1.6%

Public Entertainment – General-Audience $34,089 $32,849 $115 $152

0.3% 0.2% 0.0% 0.0%

Sponsorships $54,247 $31,371 $28,231 $30,575

0.4% 0.2% 0.2% 0.2%

Endorsements & Testimonials $0 $0 $0 $0

0.0% 0.0% 0.0% 0.0%

Coupons $522,246 $650,653 $751,762 $870,137

4.2% 4.3% 5.3% 6.6%

Retail-Value-Added – Bonus Cigarettes $1,060,304 $677,308 $636,221 $725,009

8.5% 4.5% 4.5% 5.5%

Retail-Value-Added – Non-Cigarette Bonus $24,727 $20,535 $14,342 $7,526

0.2% 0.1% 0.1% 0.0%

Company Website $940 $2,851 $1,401 $2,675

0.0% 0.0% 0.0% 0.0%

Internet – Other $0 $0 $0 $0

0.0% 0.0% 0.0% 0.0%

Telephone $679 $760 $346 $59

0.0% 0.0% 0.0% 0.0%

Other** $162,302 $126,758 $110,381 $104,280

1.3% 0.8% 0.8% 0.8%

Total $12,466,358 $15,145,998 $14,149,857 $13,110,955

Sports & Sporting Events*** $109,700 $62,800 $28,200 $30,600

* Because of rounding, sums of percentages may not equal 100 percent.

** Expenditures for audio-visual are included in the “Other” category to avoid potential disclosure of individual company data.

*** These Sports & Sporting Event Expenditures are rounded to the nearest hundred thousand dollars.
TABLE2E 

CIGARETTE ADVERTISING AND PROMOTIONAL EXPENDITURES FOR 2006-2010 

(DOLLARS IN THOUSANDS)* 

2006 2007 2008 2009 

Newspapers NIA NIA $169 NIA 

** ** 0.0% ** 

Magazines $50,293 $47,203 $25,478 $36,680 

0.0% 0.4% 0.3% 0.4% 

Outdoor $935 $3,041 $2,045 $1,812 

0.0% 0.0% 0.0% 0.0% 

Transit $0 $0 $0 $0 

0.0% 0.0% 0.0% 0.0% 

Point-of-Sale $242,625 $200,785 $165,870 $112,125 

1.9% 1.8 % 1.7% 1.3% 

Direct Mail $102,353 $81,929 $89,920 $68,891 

0.8% 0.8% 0.9% 0.8% 

Price Discounts $9,205,107 $7,699,362 $7,171,092 $6,672,428 

73.7% 70.9% 72.1% 78.2% 

Promotional Allowances - $434,239 $454,898 $481,955 $429,981 

Retailers 3.5% 4.2% 4.8% 5.0% 

Promotional Allowances - $471,204 $479,032 $448,461 $449,006 

Wholesalers 3.8% 4.4% 4.5% 5.3% 

Promotional Allowances - NIA NIA $1,245 $965 

Other   0.0% 0.0% 

Sampling $29,431 $48,719 $54,261 $23,784 

0.2% 0.4% 0.5% 0.3% 

Specialty Item Distribution - $163,761 $160,047 $93,798 $74,956 

Non-Branded 1.3% 1.5% 0.9% 0.9% 

Public Ente,tainment - $168,098 $160,104 $154,749 $134,328 

Adult-Onlv 1.3% 1.5% 1.5% 1.6% 

Public Ente,tainment - NIA NIA NIA NIA 

General-Audience **  **   

Sponsorships NIA NIA NIA NIA 

**  **   

Endorsements & Testimonials $0 $0 $0 $0 

0.0% 0.0% 0.0% 0.0% 

Coupons $625,777 $366,779 $359,793 $371,028 

5.0% 3.4% 3.6% 4.3% 

Retail-Value-Added - $817,792 $981,566 $721,818 $11,736 

Bonus Cigarettes 6.5% 9.0% 7.3% 0.1% 

Retail-Value-Added - $14,642 $17,720 $10,983 NIA 

Non-Cigarette Bonus 0.1% 0.1% 0.1% **  

Company Website $6,497 $2,351 $13,172 $18,300 

0.1% 0.0% 0.1% 0.2% 

Internet - Other $0 NIA NIA NIA 

0.0% **   

Telephone NIA NIA NIA NIA 

**  ** ** ** 

Audio-Visual $0 $0 $0 $0 

0.0% 0.0% 0.0% 0.0% 

Social Media $0 

0.0% 

Other"'* $156,938 $161,231 $148,260 $126,354 

1.3% 1.5% 1.5% 1.5% 

Total $12,489,692 $10,864,768 $9,943,068 $8,532,375 

Sooits & Sooitine: Events*** NIA $33,200 $37,300 NIA 

2010 

NIA 

** 

$46,463 

0.6% 

$1 ,744 

0.0% 

$0 

0.0% 

$108,369 

1.3% 

$56,482 

0.7% 

$6,492,381 

80.6% 

$376,805 

4.7% 

$410,370 

5.1% 

$210 

0.0% 

$22,166 

0.3% 

$65,574 

0.8% 

$138,889 

1.7% 

NIA 

** 

$0 

0.0% 

$0 

0.0% 

$235,802 

2.9% 

NIA 

** 

$0 

0.0% 

$20,829 

0.3% 

NIA 

** 

NIA 

** 

$0 

0.0% 

$0 

0.0% 

$76,705 

1.0% 

$8,052,790 

$0 

* Because of rounding, stuns ofpercentages may not equal 100 percent. 

** Expenditures denoted "NIA" are included in the "Other" category to avoid potential disclosure ofindividual company data. 

*** TI1ese Spoits & Sport.ing Event Expenditures are rounded to the nearest hundred thousand dollars. 
TABLE2F 

CIGARETTE ADVERTISING AND PROMOTIONAL EXPENDITURES FOR 2011-2015 

(DOLLARS IN THOUSANDS)* 

2011 2012 2013 2014 2015 

Newspapers $549 

0.0% 

NIA 

** 

NIA 

** 

NIA 

** 

NIA 

** 

Magazines $23,254 

0.3% 

$27,943 

0.3% 

$50,610 

0.6% 

$49,976 

0.6% 

$22,463 

0.3% 

Outdoor $3,100 

0.0% 

$2,211 

0.0% 

$2,268 

0.0% 

$2,216 

0.0% 

$47,484 

0.6% 

$2,020 

0.0% 

$36,374 

0.4% 

Transit $0 

0.0% 

$0 

0.0% 

$0 

0.0% 

Point-of-Sale $78,280 

0.9% 

$69,560 

0.8% 

$60,658 

0.7% 

Direct Mail $51,49 1 

0.6% 

$45,582 

0.5% 

$38,294 

0.4% 

$46,193 

0.6% 

$41,831 

0.5% 

Price Discounts - Retailerst 

$7,001,717 

83 .6% 

$7,807,477 

85.1% 

$7,648,571 

84.9% 

$5,565,093 

68.9% 

$5,448,562 

65.6% 

Price Discounts -

Wholesalerst 

$1,20 1,986 

14.9% 

$1,502,637 

18.1% 

Promotional Allowances -

Retailers 

$360,334 

4.3% 

$337,521 

3.7% 

$293,971 

3.3% 

$261 ,411 

3.2% 

$217,159 

2.6% 

Promotional Allowances -

Wholesalers 

$401,006 

4.8% 

$391,146 

4.3% 

$400,004 

4.4% 

$365,836 

4.5% 

$356,730 

4.3% 

Promotional Allowances -

Other 

$204 

0.0% 

NIA 

** 

NIA 

** 

NIA 

** 

NIA 

** 

Sampling NIA 

** 

NIA 

** 

NIA 

** 

NIA 

** 

NIA 

** 

Specialty Item Distribution 

- Non-Branded 

$44,394 

0.5% 

$46,912 

0.5% 

$57,061 

0.6% 

$58,248 

0.7% 

$79,359 

1.0% 

Public Ente1tainment -

Adult-Onlv 

$133,134 

1.6% 

$118,995 

1.3% 

$105,072 

1.2% 

$104,898 

1.3% 

$72,422 

0.9% 

Public Ente1tainment -

General-Audience 

$0 

0.0% 

NIA 

** 

NIA 

** 

NIA 

** 

$0 

0.0% 

Sponsorships $0 

0.0% 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

Endorsements & 

Testimonials 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

Coupons $171,222 

2.0% 

$239,618 

2.6% 

$257,507 

2.9% 

$262,753 

3.3% 

$345,626 

4.2% 

Retail-Value-Added -

Bonus Cigarettes 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

Retail-Value-Added -

Non-Ci1zarette Bonus 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

Company Website $21,898 

0.3% 

$21,403 

0.2% 

$15,402 

0.2% 

$16,632 

0.2% 

$31,253 

0.4% 

Internet - Other NIA 

** 

$1,309 

0.0% 

$5,441 

0.1% 

$5,410 

0.1% 

NIA 

** 

Telephone NIA 

** 

NIA 

** 

NIA 

** 

$65 

0.0% 

$0 

0.0% 

Audio-Visual $0 

0.0% 

NIA 

** 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

Social Media $0 

0.0% 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

$0 

0.0% 

Other** $82,678 

1.0% 

$66,734 

0.7% 

$69,371 

0.8% 

$83,773 

1.0% 

$147,132 

1.8% 

Total $8,373,260 $9,176,411 $9,004,229 $8,071,975 $8,303,569 

Soo11s & Soortiniz Events $0 $0 $0 $0 $574 

* Because of rounding, sums ofpercentages may not equal 100 percent. 

** Expendittu·es denoted "NIA" are included in the "Other" category to avoid potential disclosure ofindividual company data. 

Prior to 2014, price discounts were not broken down by whether they were paid to retailers or wholesalers. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE 2G

CIGARETTE ADVERTISING AND PROMOTIONAL EXPENDITURES FOR 2016-2020

(DOLLARS IN THOUSANDS)*

2016 2017 2018 2019 2020

Newspapers N/A

**

N/A

**

N/A

**

N/A

**

N/A

**

Magazines $19,948

0.2%

$14,944

0.2%

$8,567

0.1%

$8,667

0.1%

$4,328

0.1%

Outdoor $1,662

0.0%

$1,780

0.0%

$2,391

0.0%

$1,439

0.0%

$1,815

0.0%

Point-of-Sale $51,941

0.6%

$48,482

0.6%

$62,232

0.7%

$62,983

0.8%

$47,117

0.6%

Direct Mail $39,979

0.5%

$34,599

0.4%

$36,160

0.4%

$19,834

0.3%

$12,303

0.2%

Price Discounts – Retailers $5,806,108

66.7%

$6,188,802

71.7%

$6,154,985

73.3%

$5,695,845

74.7%

$6,065,320

77.4%

Price Discounts –

Wholesalers

$1,440,776

16.5%

$1,194,915

13.8 %

$1,054,327

12.5 %

$917,380

12.0 %

$875,976

11.2 %

Promotional Allowances –

Retailers

$228,828

2.6%

$186,855

2.2%

$180,253

2.1%

$174,884

2.3%

$181,052

2.3%

Promotional Allowances –

Wholesalers

$395,929

4.5%

$376,125

4.4%

$337,502

4.0%

$336,606

4.4%

$343,281

4.4%

Promotional Allowances –

Other

N/A

**

N/A

**

N/A

**

N/A

**

N/A

**

Sampling $53

0.0%

N/A

**

$207

0.0%

$0

0.0%

$6

0.0

Specialty Item Distribution

- Non-Branded

$96,044

1.1%

$79,512

0.9%

$61,568

0.7%

$50,533

0.7%

$41,262

0.5%

Consumer Engagement -

Retail

$38,219

0.4%

$35,987

0.4%

$28,815

0.3%

$18,824

0.2%

$11,940

0.2%

Consumer Engagement –

Adult-Only

$66,116

0.8%

$47,290

0.5%

$20,168

0.2%

$24,577

0.3%

$11,535

0.1%

Public Entertainment –

Adult-Only

N/A

**

$0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

Public Entertainment –

General-Audience

$0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

Sponsorships $0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

Endorsements &

Testimonials

$0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

Coupons $379,631

4.4%

$301,914

3.5%

$316,185

3.8%

$231,388

3.0%

$156,509

2.0%

Retail-Value-Added –

Bonus Cigarettes

$0

0.0%

N/A

**

N/A

**

$0

0.0%

$0

0.0%

Retail-Value-Added –

Non-Cigarette Bonus

$633

0.0%

N/A

**

N/A

**

N/A

**

N/A

**

Company Website $27,701

0.3%

$25,084

0.3%

$23,626

0.3%

$11,670

0.2%

$8,379

0.1%

Internet – Other N/A

**

N/A

**

N/A

**

N/A

**

N/A

**

Telephone N/A

**

N/A

**

$0

0.0%

$0

0.0%

$0

0.0%

Audio-Visual $0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

Social Media $0

0.0%

$0

0.0%

$0

0.0%

$0

0.0%

N/A

**

Other** $112,666

1.3%

$100,546

1.2%

$114,367

1.4%

$69,471

0.9%

$78,682

1.0%

Total $8,706,234 $8,636,833 $8,401,354 $7,624,104 $7,839,506

Sports & Sporting Events $498 $0 $0 $0 $0

* Because of rounding, sums of percentages may not equal 100 percent.

** Expenditures denoted “N/A” are included in the “Other” category to avoid potential disclosure of individual company data.
 

 

 

 

 

 

 

 

 

 

TABLE 2H 

CIGARETTE ADVERTISING AND PROMOTIONAL EXPENDITURES FOR 2021-2022

(DOLLARS IN THOUSANDS)*

2021 2022

Newspapers N/A 

**

N/A 

**

Magazines $11,332 

0.1%

$4,889

0.1%

Outdoor $2,161

0.0%

$3,087

0.0%

Point-of-Sale $49,074 

0.6%

$37,304 

0.5%

Direct Mail $19,110 

0.2%

$12,559 

0.2%

Price Discounts – Retailers $6,011,776 

74.6%

$5,737,294

71.7%

Price Discounts –

Wholesalers

$917,321

11.4%

$1,139,030

14.2%

Promotional Allowances –

Retailers

$235,356

2.9%

$247,152

3.1%

Promotional Allowances –

Wholesalers

$487,129

6.0%

$577,538

7.2%

Promotional Allowances –

Other

N/A 

** 

N/A 

** 

Sampling $4

0.0%

N/A 

**

Specialty Item Distribution

- Non-Branded

$43,519 

0.5%

$55,974 

0.7%

Consumer Engagement -

Retail

N/A 

**

N/A 

**

Consumer Engagement –

Adult-Only

$9,984

0.1%

$2,237

0.0%

Public Entertainment –

Adult-Only

N/A 

**

$0

0.0%

Public Entertainment –

General-Audience

$0

0.0%

$0

0.0%

Sponsorships $0

0.0%

$0

0.0%

Endorsements &

Testimonials

$0

0.0%

$0

0.0%

Coupons $152,335

1.9%

$89,452 

1.1%

Retail-Value-Added – 

Bonus Cigarettes

$0

0.0%

$0

0.0%

Retail-Value-Added – 

Non-Cigarette Bonus

N/A 

**

N/A 

**

Company Website $7,781

0.1%

$9,769

0 x%

Internet – Other $3,315

0.0%

$1,415

0.0%

Telephone $0 

0.0%

$0

0.0%

Audio-Visual $0

0.0%

$0

0.0%

Social Media $0 

0.0%

$0

0.0%

Other** $109,721

1.4%

$88,081 

1.1%

Total $8,059,919 $8,005,782

Sports & Sporting Events $0 $0

* Because of rounding, sums of percentages may not equal 100 percent.

** Expenditures denoted “N/A” are included in the “Other” category to avoid potential disclosure of individual company data.
TABLE 3 

DOMESTIC CIGARETTE ADVERTISING EXPENDITURES 

BY MEDIA FOR YEARS 1963 - 1974* 

(MILLIONS OF DOLLARS) 

YEAR TV 

1963 151.7 

1964 170.2 

1965 175 .6 

1966 198.0 

1967 226.9 

1968 217.2 

1969 221.3 

1970 205 .0 

1971 2.2 

1972 0 

1973 0 

1974 0 

RADIO NEWSPAPER MAGAZINES DIRECT BILLBOARD/ 

POSTER/ 

OUTDOOR/ 

31.6 45.6 13.2 

25.5 45.2 14.6 

24.8 41.9 14.7 

31.3 43.4 17.9 

17.5 41.2 20.3 

21.3 44.6 21.6 

13.6 48.7 13.4 

12.4 14.7 49.5 16.9 11.7 

0 59.3 98.3 27.0 60.6 

0 63.1 96.1 22.9 67.5 

0 65.3 92.4 15.2 63.2 

0 80.5 114.6 31.1 71.4 

OTHER TOTAL 

7.4 249.5 

5.8 261.3 

6.0 263.0 

6.9 297.5 

6.0 311.9 

6.0 310.7 

8.9 305.9 

4.5 314.7 

4.2 251.6 

8.0 257.6 

11 .4 247.5 

9.2 306.8 

For 1963 through 1974, the repo,ting companies did not repo,t promotional activities which they did not consider to be * 

adve1tising. TI1e data repo1ted in Tables 2 through 2G were not collected in their present form until 1975. Thus, Table 3, which 

repo1ts cigarette adve1tising expenditures from 1963 through 1974, has been retained in this repo,t for comparative ptuposes. 
TABLE 4A 

DOMESTIC MARKET SHARE OF CIGARETTES BY TAR YIELD 

(1967-1990) 

Market share of cigarettes having tar yields of: 

Yeru· 

15 mg. or less 12 mg. or less 9 mg. or less 6 mg. or less 3 mg. or less 

1967 2.0% 

1968 2.5% 

1969 3.0% 

1970 3.6% 

1971 3.8% 

1972 6.6% 

1973 8.9% 

1974 8.9% 

1975 13.5% 

1976 15.9% 

1977 22.7% 

1978 27.5% 

1979 40.9% 

1980 44.8% 34.4% 16.8% 7.3% 3.3% 

1981 56.0% 40.1% 24.6% 9.6% 3.7% 

1982 52.2% 43.8% 27.8% 8.9% 2.9% 

1983 53.1% 44.9% 27.9% 9.4% 3.1% 

1984 51.0% 43.4% 26.3% 9.4% 2.9% 

1985 51.9% 43.1% 25.3% 8.4% 2.3% 

1986 52.6% 44.5% 22.3% 9.9% 2.6% 

1987 55.4% 47.8% 20.2% 10.0% 2.5% 

1988 54.2% 48.7% 20.1% 10.7% 3.1% 

1989 55.1% 48.4% 21.5% 11.4% 2.4% 

1990 60.6% 51.5% 25.5% 12.2% 2.8% 
 

 

 

TABLE 4B

DOMESTIC MARKET SHARE OF CIGARETTES BY TAR YIELD

(1991-2016)

Year

Market share of cigarettes having tar yields of:

15 mg. or less 12 mg. or less 9 mg. or less 6 mg. or less 3 mg. or less 

1991 60.5% 52.6% 22.0% 12.7% 2.6%

1992 68.7% 52.9% 24.9% 12.7% 2.5%

1993 66 5% 53 3% 23 4% 12 6% 1 9%

1994 71 2% 53 7% 23 1% 12 3% 2 1%

1995 72.7% 53.6% 27.1% 12.2% 2.2%

1996 67.4% 55.5% 22.3% 11.9% 1.9%

1997 70.2% 55.6% 21.9% 11.5% 1.7%

1998 81.9% 56.8% 22.9% 13.2% 1.6%

1999 86.6% 57.4% 25.3% 13.6% 1.6%

2000 87 1% 50 4% 23 7% 13 6% 1 3%

2001 85.2% 58.1% 22.6% 13.2% 1.0%

2002 84.9% 58.2% 22.5% 12.9% 0.9%

2003 84.9% 59.5% 22.5% 12.6% 0.8%

2004 84.8% 57.7% 19.2% 11.5% 0.8%

2005 83.5% 58.4% 18.7% 11.5% 0.6%

2006 84.4% 57.7% 19.5% 11.1% 0.5%

2007 82 7% 57 3% 19 6% 10 7% 0 4%

2008 84.3% 57.6% 18.0% 10.3% 0.3%

2009 74.7% 54.4% 15.5% 9.6% 0.3%

2010 86.3% 53.8% 12.9% 8.2% 0.2%

2011* 94.1% 53.3% 12.2% 7.9% 0.2%

2012* 88.6% 51.6% 15.5% 8.2% 0.2%

2013* 87 3% 51 7% 14 0% 7 4% 0 2%

2014* 83.3% 49.0% 16.7% 6.9% 0.2%

2015* 84.5% 52.4% 14.8% 7.2% 0.2%

2016* 87.9% 52.2% 16.7% 6.7% 0.2%

* Prior to 2011, the companies were required to submit tar, nicotine, and carbon monoxide yield data for every cigarette variety 

they sold. From 2011 through 2016, the companies were only required to submit data in their possession or control; the

Commission did not require them to test their cigarettes. As a result, market share comparisons both within a given year and to 

previous years might no longer be accurate. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1965

1970

1975

1980

1985

TABLE 5A

DOMESTIC MARKET SHARE OF FILTER AND NON-FILTER CIGARETTES

(1963-1986)

Year Non-filter Filter Charcoal Non-charcoal

1963 42% 58% * *

1964 39% 61% * *

36% 64% * *

1966 32% 68% * *

1967 28% 72% * *

1968 26% 74% 6% 68%

1969 23% 77% 6% 71%

20% 80% 6% 74%

1971 18% 82% 6% 76%

1972 16% 84% 6% 78%

1973 15% 85% 5% 80%

1974 14% 86% 5% 81%

13% 87% 5% 82%

1976 12% 88% 4% 84%

1977 10% 90% 4% 86%

1978 10% 90% 3% 87%

1979 9% 91% 3% 88%

8% 92% 3% 89%

1981 8% 92% 2% 90%

1982 7% 93% 2% 91%

1983 7% 93% 2% 91%

1984 7% 93% 2% 91%

6% 94% 1% 93%

1986 6% 94% 1% 93%

* Figures for charcoal filter cigarettes for the years 1963 through 1967 were not obtained.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE 5B

DOMESTIC MARKET SHARE OF FILTER AND NON-FILTER CIGARETTES

(1987-2022)

Year Non-filter Filter

1987 4% 96%

1988 5% 95%

1989 5% 95%

1990 5% 95%

1991 4% 96%

1992 3% 97%

1993 3% 97%

1994 3% 97%

1995 3% 97%

1996 3% 97%

1997 2% 98%

1998 2% 98%

1999 2% 98%

2000 2% 98%

2001 2% 98%

2002 2% 98%

2003 1% 99%

2004 1% 99%

2005 1% 99%

2006 1% 99%

2007 1% 99%

2008 1% 99%

2009 0.5% 99.5%

2010 0.6% 99.4%

2011 0.5% 99.5%

2012 0.4% 99.6%

2013 0.4% 99.6%

2014 0.4% 99.6%

2015 0.2% 99.8%

2016 0.3% 99.7%

2017 0.3% 99.7%

2018 0.3% 99.7%

2019 0.2% 99.8%

2020 0.2% 99.8%

2021 0.2% 99.8%

2022 0.2% 99.8%
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1970

1980

1990

2000

2010

TABLE 6A

DOMESTIC MARKET SHARE OF CIGARETTES BY LENGTH IN MILLIMETERS

(1967-2010)

YEAR 68-72 mm 79-88 mm 94-101 mm 110-121 mm

(King) (Long)

1967 14% 77% 9% ---

1968 12% 74% 13% ---

1969 11% 74% 16% ---

9% 73% 18% ---

1971 8% 72% 20% ---

1972 8% 71% 21% ---

1973 7% 71% 22% ---

1974 6% 71% 23% --- *

1975 6% 69% 24% 1%

1976 5% 69% 24% 2%

1977 5% 67% 26% 2%

1978 5% 65% 27% 2%

1979 4% 65% 30% 2%

3% 63% 32% 2%

1981 3% 62% 33% 2%

1982 3% 61% 34% 2%

1983 3% 60% 34% 2%

1984 3% 59% 36% 2%

1985 3% 58% 37% 2%

1986 2% 58% 37% 3%

1987 2% 57% 38% 3%

1988 2% 57% 38% 2%

1989 2% 57% 39% 2%

2% 57% 39% 2%

1991 2% 56% 40% 2%

1992 2% 56% 41% 2%

1993 1% 55% 42% 2%

1994 1% 56% 41% 2%

1995 1% 57% 40% 2%

1996 1% 57% 40% 2%

1997 1% 58% 39% 2%

1998 1% 59% 38% 2%

1999 1% 59% 38% 2%

1% 60% 37% 2%

2001 1% 60% 38% 1%

2002 1% 61% 37% 2%

2003 1% 61% 36% 2%

2004 1% 62% 35% 2%

2005 1% 62% 35% 2%

2006 1% 62% 35% 2%

2007 1% 65% 32% 2%

2008 2% 61% 34% 2%

2009 2% 61% 35% 2%

3% 59% 36% 2%

* The 110-121 mm length was combined with 94-101 mm length.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE 6B

DOMESTIC MARKET SHARE OF CIGARETTES BY LENGTH IN MILLIMETERS

(2011-2022)

YEAR 68-72 mm 79-88 mm 94-101 mm 110-121 mm

(King) (Long)

2011 3% 57% 38% 2%

2012 3% 57% 39% 1%

2013* 3% 57% 39% 1%

2014 3% 58% 38% 1%

2015 3% 53% 43% 1%

2016 3% 56% 40% 1%

2017 3% 56% 41% 1%

2018 3% 56% 41% 1%

2019 3% 56% 41% 1%

2020 3% 56% 41% 1%

2021 2% 56% 41% 1%

2022 2% 56% 41% 1%

* The table does not report the less than 0.1% share of cigarettes sold in 2013 with a 93 mm length.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE 7A

DOMESTIC MARKET SHARE OF MENTHOL AND NON-MENTHOL CIGARETTES

(1963-2000)

YEAR MENTHOL NON-MENTHOL

1963 16% 84%

1964 16% 84%

1965 18% 82%

1966 19% 81%

1967 20% 80%

1968 21% 79%

1969 22% 78%

1970 23% 77%

1971 24% 76%

1972 24% 76%

1973 25% 75%

1974 27% 73%

1975 27% 73%

1976 28% 72%

1977 28% 72%

1978 28% 72%

1979 29% 71%

1980 28% 72%

1981 28% 72%

1982 29% 71%

1983 28% 72%

1984 28% 72%

1985 28% 72%

1986 28% 72%

1987 28% 72%

1988 28% 72%

1989 27% 73%

1990 26% 74%

1991 27% 73%

1992 26% 74%

1993 26% 74%

1994 25% 75%

1995 25% 75%

1996 25% 75%

1997 25% 75%

1998 26% 74%

1999 26% 74%

2000 26% 74%
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE 7B

DOMESTIC MARKET SHARE OF MENTHOL AND NON-MENTHOL CIGARETTES

(2001-2022)

YEAR MENTHOL NON-MENTHOL

2001 26% 74%

2002 27% 73%

2003 27% 73%

2004 27% 73%

2005 27% 73%

2006 28% 72%

2007 29% 71%

2008 27% 73%

2009 29% 71%

2010 31% 69%

2011 32% 68%

2012 33% 67%

2013 34% 66%

2014 33% 67%

2015 26% 74%

2016 35% 65%

2017 36% 64%

2018 36% 64%

2019 37% 63%

2020 37% 63%

2021 37% 63%

2022 36% 64%
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE 8A DISCLOSURE OF TAR AND NICOTINE RATINGS ON CIGARETTE PACKS (1994-

2001)

1994 1995 1996 1997 1998 1999 2000 2001

% cigarettes sold that disclose

ratings on the pack

6.3% 6.3% 6.1% 5.8% 5.3% 4.1% 3.6% 1.8%

more than 15

mg. tar

share of

varieties in

tar group

28.8% 27.3% 32.7% 29.8% 18.0% 13.4% 12.9% 14.8%

% that

discloses

ratings on

pack

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

12-15 mg. tar share of

varieties in

tar group

19.3% 21.0% 15.3% 16.7% 29.1% 32.5% 39.0% 29.7%

% that

discloses

ratings on

pack

0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0%

8-11 mg. tar share of

varieties in

tar group

38.6% 38.7% 39.2% 41.0% 39.4% 40.3% 33.9% 42.1%

% that

discloses

ratings on

pack

2.4% 2.8% 2.6% 2.3% 3.2% 1.6% 0.7% 1.0%

4-7 mg. tar share of

varieties in

tar group

11.2% 10.8% 10.9% 10.8% 11.9% 12.2% 12.9% 12.5%

% that

discloses

ratings on

pack

30.7% 30.1% 29.3% 28.6% 20.7% 16.2% 16.5% 3.7%

3 mg. tar or

less

share of

varieties in

tar group

2.1% 2.2% 1.9% 1.7% 1.6% 1.6% 1.3% 1.0%

% that

discloses

ratings on

pack

91.8% 89.1% 97.2% 97.3% 97.4% 92.3% 92.0% 87.9%
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE 8B

DISCLOSURE OF TAR RATINGS ON CIGARETTE PACKS (2002-2011)*

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

% that discloses ratings on the pack 1.4% 1.2% 1.2% 0.9% 0.8% 0.8% 0.0% 0.0% 0.0% 0.0%

more than 15

mg. tar

share of varieties

in group

15.1% 15.1% 15.2% 16.5% 15.5% 17.3% 15.7% 25.2% 13.7% 5.9%

% that discloses

ratings on pack

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

12-15 mg. tar share of varieties

in group

28.8% 28.9% 30.3% 28.3% 28.4% 27.4% 29.9% 23.1% 33.5% 46.5%

% that discloses

ratings on pack

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

8-11 mg. tar share of varieties

in group

43.0% 43.2% 42.5% 43.3% 44.5% 44.3% 43.7% 41.8% 43.8% 38.8%

% that discloses

ratings on pack

0.9% 0.8% 0.7% 0.6% 0.5% 0.5% 0.0% 0.0% 0.0% 0.0%

4-7 mg. tar share of varieties

in group

12.2% 12.0% 11.2% 11.3% 10.9% 10.5% 10.3% 9.7% 8.6% 8.6%

% that discloses

ratings on pack

1.8% 1.5% 1.5% 1.2% 1.0% 0.8% 0.0% 0.0% 0.0% 0.0%

3 mg. tar or less share of varieties

in group

0.9% 0.8% 0.8% 0.6% 0.5% 0.4% 0.3% 0.3% 0.2% 0.2%

% that discloses

ratings on pack

88.7% 89.9% 91.6% 90.7% 94.9% 100.0

%

0.0% 0.0% 0.0% 0.0%

* Prior to 2011, the companies were required to submit tar yield data for every cigarette variety they sold. Since 2011, the companies have only been required to submit data in their

possession or control; the Commission has not required them to test their cigarettes. As a result, market share comparisons both within a given year and to previous years might no

longer be accurate. Given that and the fact that since 2008 the companies have reported that they have not disclosed tar ratings on any of their packs, the Commission will no

longer be updating this table.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPENDIX

2022 Advertising and Promotional Expenditure Categories

Newspapers: Newspaper advertising; but excluding expenditures in connection with sampling,

consumer engagement, specialty item distribution, public entertainment, endorsements,

sponsorships, coupons, and retail-value-added.

Magazines: Magazine advertising; but excluding expenditures in connection with sampling,

consumer engagement, specialty item distribution, public entertainment, endorsements,

sponsorships, coupons, and retail-value-added.

Outdoor: Billboards; signs and placards in arenas, stadiums, and shopping malls, whether they are

open air or enclosed; and any other advertisements placed outdoors, regardless of their size,

including those on cigarette retailer property; but excluding expenditures in connection with

sampling, consumer engagement, specialty item distribution, public entertainment, endorsements,

sponsorships, coupons, and retail-value-added.

Point-of-Sale: Point-of-sale advertisements, that is, materials displayed or distributed at a retail

location; but excluding expenditures in connection with outdoor advertising, sampling, consumer

engagement, specialty item distribution, public entertainment, endorsements, sponsorships,

coupons, and retail-value-added.

Direct Mail: Direct-mail advertising; but excluding expenditures in connection with sampling,

consumer engagement, specialty item distribution, public entertainment, endorsements,

sponsorships, coupons, retail-value-added, and Internet advertising not on the company website.

Price Discounts – Retailers: Price discounts paid to cigarette retailers in order to reduce the price

of cigarettes to consumers, including off-invoice discounts, buy-downs, voluntary price reductions,

and trade programs; but excluding retail-value-added expenditures for promotions involving free

cigarettes and expenditures involving coupons.

Price Discounts – Wholesalers: Price discounts paid to cigarette wholesalers in order to reduce

the price of cigarettes to consumers, including off-invoice discounts, buy-downs, voluntary price

reductions, and trade programs; but excluding retail-value-added expenditures for promotions

involving free cigarettes and expenditures involving coupons.

Promotional Allowances – Retailers: Promotional allowances paid to cigarette retailers in order

to facilitate the sale or placement of any cigarette, including payments for stocking, shelving,

displaying, and merchandising brands; volume rebates; incentive payments; and the cost of

cigarettes given to retailers for free for subsequent sale to consumers; but excluding expenditures in

connection with newspapers, magazines, outdoor, audio-visual, direct mail, point-of-sale, and price

discounts.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Promotional Allowances – Wholesalers: Promotional allowances paid to cigarette wholesalers in

order to facilitate the sale or placement of any cigarette, including payments for volume rebates,

incentive payments, value-added services, promotional execution and satisfaction of reporting

requirements; but excluding expenditures in connection with newspapers, magazines, outdoor,

audio-visual, direct mail, point-of-sale, price discounts, and retail promotional allowances.

Promotional Allowances – Other: Promotional allowances paid to any persons other than

retailers, wholesalers, and full-time company employees who are involved in the cigarette

distribution and sales process in order to facilitate the sale or placement of any cigarette; but

excluding expenditures in connection with newspapers, magazines, outdoor, audio-visual, direct

mail, point-of-sale, price discounts, and retail and wholesale promotional allowances.

Sampling: Sampling of cigarettes, including the cost of the cigarettes, all associated excise taxes

and increased costs under the Master Settlement Agreement, and the cost of organizing, promoting,

and conducting sampling. Sampling includes the distribution of cigarettes for consumer testing or

evaluation when consumers are able to smoke the cigarettes outside of a facility operated by the

company, but not the cost of actual clinical testing or market research associated with such

cigarette distributions. Sampling also includes the distribution of coupons for free cigarettes, when

no purchase or payment is required to obtain the coupons or cigarettes.

Specialty Item Distribution – Non-Branded: All costs of distributing any items (other than

cigarettes, items the sole function of which is to advertise or promote cigarettes, or written or

electronic publications), whether distributed by sale, redemption of coupons, or otherwise, that do

not bear the name, logo, or an image of any portion of the package of any brand or variety of

cigarette, including the cost of the items distributed but subtracting any payments received for the

item. The costs associated with distributing non-cigarette items in connection with sampling or

retail-value-added programs are reported in those categories, not as specialty item distribution.

Consumer Engagement – Retail: All costs of consumer engagement at cigarette retail locations

open to underage individuals, including any third-party agency fees, but excluding the cost of

coupons distributed in the course of consumer engagement activities.

Consumer Engagement – Adult-Only: All costs of consumer engagement of smokers in adultonly facilities, including any third-party agency fees, but excluding the cost of coupons distributed

in the course of consumer engagement activities.

Public Entertainment – Adult-Only: Public entertainment events bearing or otherwise displaying

the name or logo or an image of any portion of the package of any of a company’s cigarettes or

otherwise referring or relating to cigarettes, which take place in an adult-only facility, including all

expenditures made by the company in promoting and/or sponsoring such events; but excluding

expenditures in connection with adult-only consumer engagement. Such events must include

entertainment, as opposed to simply consumer engagement.

Public Entertainment – General-Audience: Public entertainment events bearing or otherwise

displaying the name or logo or an image of any portion of the package of any of a company’s

cigarettes or otherwise referring or relating to cigarettes, which do not take place in an adult-only

facility, including all expenditures made by the company in promoting and/or sponsoring such
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

events. Such events must include entertainment, as opposed to simply consumer engagement.

Sponsorships: Sponsorships of sports teams or individual athletes, but excluding endorsements.

Endorsements & Testimonials: Endorsements, testimonials, and product placement.

Coupons: All costs associated with coupons for the reduction of the retail cost of cigarettes,

regardless of how they are distributed or redeemed, including all costs associated with advertising

or promotion, design, printing, distribution, and redemption. However, when coupons are

distributed for free cigarettes and no purchase or payment is required to obtain the coupons or the

cigarettes, these activities are considered to be sampling and not couponing.

Retail-Value-Added – Bonus Cigarettes: Retail-value-added expenditures for promotions

involving free cigarettes (e.g., buy two packs, get one free), whether or not the free cigarettes are

physically bundled together with the purchased cigarettes, including all expenditures and costs

associated with the value added to the purchase of cigarettes (e.g., excise taxes paid for the free

cigarettes and increased costs under the Master Settlement Agreement).

Retail-Value-Added – Non-Cigarette Bonus: Retail-value-added expenditures for promotions

involving free or discounted non-cigarette products (e.g., buy two, get a cigarette lighter or buy

two, save 20 cents per gallon of gasoline), including all expenditures and costs associated with the

value added to the purchase of cigarettes.

Company Website: All expenditures associated with advertising on any company Internet website

that can be accessed by computers located in the United States.

Internet – Other: Internet advertising other than on the company’s own Internet website,

including on the World Wide Web, on commercial online services, and through electronic mail

messages; but excluding costs associated with social media marketing.

Telephone: Telephone advertising, including costs associated with the placement of telemarketing

calls or the operation of incoming telephone lines that allow consumers to participate in any

promotion or hear pre-recorded product messages; but excluding costs associated with having

customer service representatives available for responding to consumer complaints or questions.

Social Media Marketing: All expenditures for social media marketing on websites or other online

services or communities, including but not limited to social networking sites, microblogging sites,

content-sharing sites, and blogs.

Audio-visual: Audio-visual or video advertising on any medium of electronic communication not

subject to the Federal Communications Commission’s jurisdiction, including screens at motion

picture theaters, video cassettes or DVDs, and television screens or monitors in stores; but

excluding expenditures in connection with Internet advertising.

Other: Advertising and promotional expenditures not covered by another category. To the extent

that third-party agency fees relating to cigarette advertising, merchandising, or promotion cannot

be divided based on the materials to which they relate, they should be reported in this category.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sports and Sporting Events: All advertising and promotional expenditures connected with or

related to sports or sporting events, including, but not limited to: (i) the sponsoring, advertising, or

promotion of sports or sporting events; support of an individual, group, or sports team; and

purchase of or support for sports equipment, uniforms, sports facilities and/or training facilities; (ii)

all expenditures for advertising in the name of the company or any of its cigarette brands in a sports

facility, on a scoreboard or in conjunction with the reporting of sports results; (iii) all expenditures

connected with functional promotional items (e.g., hats or posters) provided at or in connection

with a sporting event; and (iv) all expenditures associated with cigarette sampling or consumer

engagement in connection with a sporting event, including sampling or consumer engagement in an

adult-only facility in the grounds or parking lot of a sports facility. “Sports and sporting events”

includes, but is not limited to, football, basketball, baseball, hockey, tennis, wrestling, karate, judo,

weight lifting, volleyball, skiing, skating, sailing, boating, equestrian, rodeo, automobile, race car,

funny car, motorcycle, bicycle, truck, monster truck, tractor-pull, fishing, and hunting events,

competitions, tournaments, and races. This category is duplicative of expenditures for other

categories.