US consumers are more receptive to traditional marketing techniques, with new research from Harris Interactive and the Public Relations Society of America (PRSA) showing that methods such as paid advertising and sponsorship are deemed as more trustworthy and acceptable forms of marketing.
Newer marketing techniques, including internet pop-ups and adverts in text messages were found to be viewed by consumers as less acceptable ways of reaching audiences, while attitudes towards product placement were less clear cut.
The survey revealed that 38% of general consumers, 24% of executives and 34% of government staffers approved of product placement in schools, while a much larger amount, 55% to 73%, were comfortable with paid placements in movies and television schools.
Product placement is increasingly becoming part of the media mix, with threats to the traditional carriers of advertising causing marketers to expand their portfolio with new ways to target their audience.
According to US research company, PQ Media, the product placement market is predicted to reach $6.94 billion by 2009, increasing at a compound annual rate of 14.9% between 2004 and 2009 (see Product Placement To Hit $7 Billion By 2009).
Commenting on the findings of the Harris Interactive and PRSA report on consumers attitudes towards product placement, Judith Phair, chief executive officer of PRSA said: “Majorities of general consumers, executives and congressional staffers think the government does about the right amount of regulation or that it should do less to regulate marketing practices.”
Katherine Binns from Harris Interactive added: “These findings can serve as a guide post for companies, a list of do’s and don’ts for developing promotional strategies so companies don’t turn away the key constituencies that they are trying to connect with.”
Looking towards 2006, industry reports predict marketing channels to be strongly influenced by the internet, with 24/7 Real Media forecasting search engine marketing to reinvent itself as a lead-generation channel, as well as more interactive methods of advertising (see Search Engine Marketing To Enjoy Popularity Surge In 2006).
Word of mouth advertising also looks set to enjoy a surge in popularity, with estimates from eMarketer showing that about half of all online marketers are engaging in some form of word of mouth or viral campaign, with the number set to increase (see Word Of Mouth Advertising Set To Increase).
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