The economics of tobacco advertising: spending, demand, and the effects of bans

Abstract

This study examines most of the published evidence worldwide on the effects of aggregate advertising and of advertising bans on aggregate cigarette and tobacco consumption. Thirty-five studies representing eight countries published 350 advertising–demand coefficients, the majority of which (66.8%) were not positive and statistically significant, suggesting that aggregate advertising generally bears little or no relation to aggregate demand. Twenty-one studies representing 23 countries published 199 advertising ban coefficients, the majority of which (70.8%) were not negative and statistically significant, suggesting that advertising bans also bear little or no relation to aggregate demand. On the whole, the evidence indicates that full or partial bans on advertising are likely to have little or no effect on aggregate cigarette or tobacco demand because the banned advertising itself apparently has little or no effect on aggregate demand.

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Notes on contributors

Kent M. Lancaster

Kent M. Lancaster is an Adjunct Professor of Advertising/Public Relations in the School of Communication at the University of Miami and President of Media Research Institute, Inc., Miami, Florida. Previously, he was a Professor of Advertising in the College of Journalism and Communications at the University of Florida for 12 years, and an Associate Professor of Advertising at the University of Illinois at Urbana-Champaign for 10 years. His Ph.D. in mass media and MA in advertising are from Michigan State University. Dr. Lancaster has published books and numerous articles on advertising media and on the economics of advertising.

Alyse R. Lancaster

Alyse R. Lancaster is an Assistant Professor of Advertising/Public Relations in the School of Communication at the University of Miami. She received both her Ph.D. and her M.A. degrees in mass communication from the University of Florida. Her B.S. in advertising and B.A. in English also are from the University of Florida. Dr. Lancaster’s research is in the area of health communication with emphasis on the effectiveness of public service advertising, effects of alcohol and tobacco advertising, and how to use the media to target audiences effectively.