Tobacco advertising helps persuade non-smokers to start smoking, and helps dissuade smokers from quitting – the overwhelming majority of independent research into the effect of tobacco advertising and sponsorship on tobacco consumption shows that there is a link and that this link works across cultures.

The tobacco industry has always maintained that the only function of advertising is to persuade smokers to switch between brands and that advertising does not affect overall consumption. Clive Turner from the Tobacco Advisory Council – a body set up by the tobacco industry – reiterates the industry line: "Certainly no tobacco advertising is concerned with encouraging non-smokers to start or existing smokers to smoke more and it seems blindingly obvious that, unless you are a smoker, tobacco advertising or sponsorship has absolutely no influence whatsoever in persuading or motivating a purchase." (1986)

But according to advertising executive Emerson Foote, former CEO of McCann-Erickson, which has handled millions of dollars in tobacco industry accounts: "The cigarette industry has been artfully maintaining that cigarette advertising has nothing to do with total sales. This is complete and utter nonsense. The industry knows it is nonsense. I am always amused by the suggestion that advertising, a function that has been shown to increase consumption of virtually every other product, somehow miraculously fails to work for tobacco products." (1981)

In fact, the consensus is that, while there is no doubt that tobacco advertising can have an effect on the brand of cigarettes chosen by smokers, it also has an effect on the overall size of the market – whether or not non-smokers choose to start smoking, and whether smokers will attempt to stop. In addition, advertising is used to maintain brand equity – the proportion of the product's price which has less to do with the intrinsic value of the product than with the branding that it represents. The cost of producing premium cigarettes is similar to that of producing budget brands. However, people are willing to pay more for a premium product because of the positive associations which the brand has for them. Without advertising, this brand equity will gradually erode, and brands will cease to be fashionable and begin to look more old-fashioned. This will reduce the ability of tobacco companies to charge a premium for certain brands, reducing companies' profitability.

A number of economic studies have shown that comprehensive bans on tobacco advertising can have an effect in reducing the prevalence of smoking in society. Internal tobacco industry documents show that both the tobacco and advertising industries have been aware for many years that tobacco advertising affects overall consumption, as well as market share.

The tobacco industry and the advertising agencies they work with are particularly concerned with increasing the number of smokers, as well as the share of the market occupied by individual brands.

The New York advertising agency, Ted Bates, presented advice to a tobacco company on how to reach teenagers.

"In the young smoker's mind, a cigarette falls into the same category with wine, beer, shaving, wearing a bra (or purposely not wearing one), declaration of independence and striving for self-identity.... Thus, an attempt to reach young smokers, starters, should be based, among others, on the following major parameters:

Present the cigarette as one of the few initiations into the adult world.

Present the cigarette as part of the illicit pleasure category of products and activities."