WASHINGTONTobacco companies are not getting the same
bang for their advertising dollars as they once did. Cigarette sales in the
United States in 1999, the first year affected by the Master Settlement
Agreement between the tobacco industry and 46 states, dropped despite an
increase in spending for advertising and promotions.
In its annual report on cigarette sales and advertising, the
Federal Trade Commission (FTC) said that domestic sales dropped to 411.3
billion cigarettes in 1999 from 458.5 billion in 1998, a decrease of 10.3%. The
five largest cigarette companies hiked their spending for advertising and
promotion in 1999 to $8.24 billion, an increase of 22.3% over 1998.