Communication Effects and Product Placement: Perception of the Instrument by Members of Different Generations

Nowadays, companies actively implement digital media channels in their marketing strategies. In some countries (e.g. the UK, China, Norway and Canada) the Internet has become the priority channel for advertisement. The product placement market is currently adapting to new media channels as well. In search for new placement opportunities advertisers are starting to look into streaming services with original content, which has attracted the young audience (18-34) away from traditional television. In addition, many companies are actively collaborating with social media influencers and integrate their placements in mobile content. Research has been done about the generations X, Y, Z and their perception of advertising messages. However, the connection between sustainable generational characteristics and outcomes of advertising communication has not yet been researched. The goal of this research is to explore the differences in perception of product placement between generations X and Y (also known as "millennials") through the lens of the communication effects theory. Empirical data for this research was gathered using an online poll among members of generations X and Y (21-56) living in Moscow and Saint-Petersburg. This paper consists of an introduction, three main chapters and a conclusion. The first chapter describes the theoretical framework of the study and key characteristics of generations X and Y. In the second chapter a methodology for collecting and analyzing data is proposed. In the third chapter the results of this study are discussed. The key findings of this research are described in the conclusion.