Are traditional marketing tactics losing their effectiveness?
- The audience for telemarketers is limited. The Federal Trade Commission reported on August 18, 2005 that over 100 million phone numbers were registered with the National Do Not Call Registry. In December of 2005, satellite television provider DIRECTV agreed to pay a $5.3 Million penalty for Do Not Call violations.
- Newspaper readership is in decline. In 1950 nearly every household received at least one newspaper. By 2003, less than 50% of households received Sunday editions, with fewer receiving a daily newspaper.
- Thanks to digital video recorders, viewers are skipping TV ads. In 2004, TV advertising negotiator Magna Global USA released a "worse case scenario" analysis of "custom Nielsen data" indicating that the amount of commercial time being skipped by DVRs would rise to 5% by 2005 and 17% by 2010.
- Radio advertising is under attack on multiple fronts. Commercial-free subscription services such as Sirius and XM Satellite Radio have over 10 million
subscribers and satellite ready receivers are available as an option on almost every new car sold in the United States.
During the 4th quarter of 2005, Apple sold 14 million iPods. Accessories such as FM transmitters (that allow users to play digital media players in their cars)
have become a $1.5 Billion business.
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