Advertising and product launch strategies in the light of tobacco advertising legislation

Abstract

This short paper aims to increase understanding of tobacco companies’ advertising strategies. Time series data and intervention analysis methods are used to investigate whether tougher tobacco advertising legislation and the threat of such legislation result in firms significantly changing their advertising activities in the period preceding the enactment of legislation. The paper considers legislation introduced by both the UK Government and the European Commission in recent years. Results suggest that there is some significant short-term increase in advertising behaviour, coinciding with product launches that firms instigate prior to legislation changes. However, firms do not generally maintain higher advertising expenditures than previously throughout the period between legislation being introduced and coming into force.

Additional information

Notes on contributors

Caroline Elliott

Dr Caroline Elliott is a Lecturer in the Department of Economics at Lancaster University Management School. Having completed her undergraduate degree at Oxford University and her MA at the University of Manchester, her PhD was on the Economics of Advertising again at the University of Manchester.

Pamela Lenton

Dr Pamela Lenton is a Lecturer in the Department of Economics at the University of Sheffield. She has a Joint BSc(Hons) in Economics and marketing and PhD in Economics (Lancaster). She joined the department in 2004, having previously taught at Lancaster.