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Ending the Tobacco Problem: A Blueprint for the Nation
marketing became the dominant strategy (Pierce and Gilpin 2004), and traditional forms of advertising in mass media have declined. Magazine advertising has not been abandoned, however, and the industry still spends $107 million per year to produce advertisements containing colorful, attractive, and prominently placed imagery that appeals to both youth and adult consumers (King and Siegel 2001). Expenditures for magazine advertisements have declined dramatically since their peak in 1984, however, when tobacco companies reported spending $425.9 million on advertising in this medium, which then represented more than 20 percent of their marketing and promotion budgets. Magazine advertisements now represent a much smaller percentage of total spending: less than 1 percent, if retail consumer price discounting is included (FTC 2005).
The amount of cigarette advertising in magazines with high youth readership has declined since tobacco companies agreed to avoid targeting youth as a condition of the MSA (Hamilton et al. 2002). Researchers credit this trend to public pressure from advocacy groups and the popular press, as the proportion of advertising expenditures in magazines with at least 15 percent youth readership declined more after public pressure was applied than immediately following the execution of the MSA (Hamilton et al. 2002). Nevertheless, a recent court decision may make tobacco companies take greater care in adhering to the MSA advertising requirements; in 2004, a California court of appeals affirmed a trial court ruling that the R.J. Reynolds Company violated the agreement by placing cigarette advertisements in magazines with high youth readerships (People of the State of California ex reI. Lockyer v. R.J. Reynolds Tobacco Company, 116 CalAppAth 1253, 1291, 2004).
Notwithstanding the decline in industry expenditures on advertising in youth-oriented publications, however, youth exposure to cigarette advertisements remains high. One study found that magazine advertisements for brands of cigarettes preferred by youth (those smoked by more than 5 percent of the smokers in the 8th, 10th, and 12th grades) reached more than 80 percent of young people in the United States an average of 17 times each in 2000 (King and Siegel 2001). Moreover, studies have shown that the MSA itself had little, if any, effect on the exposure of young people to magazine advertisements in the years following the agreement (Hamilton et al. 2002; King and Siegel 2001; Krugman et al. 2005). Cigarette companies continue to promote their products in magazines that reach high percentages and numbers of youth readers (Krugman et al. 2005).
Like magazine advertising, point-of-sale advertising (advertisements at the retail location, excluding outdoor signs on retailer property) also represents a smaller percentage of the promotional spending for tobacco companies than it did in years past. In 2003, tobacco companies reported spending $165.8 million on point-of-sale promotions. This amount rep-