Literature Review By Anna Harrington
Advanced writing in the Business Administration Professions ENGL 3304
In society today, there has been a huge trend to shift from traditional marketing techniques such as print advertisements, direct mail, television, and radio advertisements, to more interactive methods such as the internet. With the developments of new technology such as smartphones and the Ipad, these marketing methods are proving to be more effective to reach and retain consumers. The definition of interactive marketing comes from John Deighton at Harvard, who says interactive marketing is the ability to address the customer, remember what the customer says and address the customer again in a way that illustrates that we remember what the customer has told us (Arizona Office of Tourism, 2010). Augmented reality is one of the latest developments in this trend. The idea is straightforward enough: take a real-life scene, or (better) a video of a scene, and add some sort of explanatory data to it so that you can better understand what's going on, or who the people in the scene are, or how to get to where you want to go (Arthur, 2010). Many companies have already developed marketing techniques that are more interactive, including augmented reality, and these methods have shown to be effective. However, the future of interactive marketing and augmented reality and the effect that this will have on traditional marketing techniques is a subject that is less researched. Current State of Marketing
Marketing today is entirely different than it was even just a few years ago. With new technologies, websites, and interactive tools, the way companies reach consumers is an ever changing process. Core marketing techniques that have been used for ages are going through rapid changes, especially in the past year of 2009. Average weekday circulation at 379 U.S. newspapers fell 10.6% during the six months ending in September--the steepest decline ever recorded by the Audit Bureau of Circulations. And although a recent study found that consumer spending on subscription media increased 7% in the past year, that didn't mean subscriptions in the traditional sense--the number of households subscribing to magazines dropped two percentage points while subscriptions for home video and smartphone services were both up (Ray, 2009). This shows the large shift from print advertisement to interactive methods of consumer product research such as applications on smartphones, including augmented reality. Consumers today are reading less magazines and newspapers, and instead finding product information more on the internet and through websites such as Twitter, Facebook, and blogs. Also, traditional methods such as television and radio are also being challenged as well. With new technologies such as TiVo and DVRs consumers can easily skip over television advertisements and ignore them altogether. Households with DVRs tripled in just three years, more consumers are avoiding ads, and a majority feels there is "too much advertising” (Ray, 2009). With inventions such as the Ipod and Ipad, consumers are listening to the radio less, and instead using these technologies to avoid advertisements as well as enjoy a more customized and interactive product. Even advertisements placed online such as banners are not as effective unless they are more interactive or customized towards the consumer, because these can be easily ignored as well. Social Media sites like Facebook are so loaded with ads that a consumer spending ten minutes on the site might be exposed to as many as 90 easy-to-ignore ads (Ray, 2009).
Companies today are catching onto the current trends, and shifting their budgets more towards this interactive media. As mentioned in the report by Forrester Research titled “US Interactive Marketing Forecast, 2009 to 2014,” interactive marketing spend will trend up from 12% today to 22% in the next...