Monday, June 10, 2013

Is Big Tobacco Back as a Big Advertiser?

Rollout of E-Cigarettes Is Spurring Spending Again, But Regulation Looms
Ad Age media news
By: Michael Sebastian, John McDermott
June 10, 2013

Tobacco advertising, once nearly a $1 billion ad category, may seem as much a relic as Peggy Olson’s typewriter. But with the three largest U.S. tobacco companies entering the electronic-cigarette market, Big Tobacco is poised to once again become a significant spender.

The e-cigarette industry is projected to roughly double in size this year to an approximately $1 billion market in 2013 from a $500 million market in 2012, and to grow at a 50% compound annual rate over the next few years, according to a Citibank report. “It’s an exciting time to be in U.S. tobacco,” said Citibank analyst Vivien Azer.
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Gregory Conley, volunteer legislative director for the Consumer Advocates for Smoke-Free Alternatives Association, said that any regulations the FDA may try to impose will likely result in a court battle, thus preventing any regulations from going into effect within the next year. “There definitely is an opportunity to get back into media markets,” he added....

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