More broadly, media firms could be a big winner regardless of which e-cigarettes prevail, because they're being advertised on television – a venue where traditional cigarettes have been banned for years. It's a new front for the tobacco industry, which still spends billions of dollars on other media, including magazine ads, promotions and sponsorships. That trend will probably accelerate in an all-out marketing e-cigarette war as Altria and Reynolds enter the market this year. And e-cigarettes already have outspent traditional cigarette makers advertising in major media this year, according to data by Kantar Media.
New frontiers in advertising and social media may win some of that spending. The Internet advertising industry could benefit from e-cigarettes supported by people online via the likes of Google's recently launched "shared endorsement" service, which sells information about users' endorsements. (It's not a coincidence that digital entrepreneurs like Parker have entered the space.)
And what about Big Tobacco's role? Altria and Reynolds need to compete, but the cost of a massive new marketing push in a sector where regulatory issues are still being sorted out might not make perfect sense, at least for now, analysts say, especially if such new costs mean any trade-off for tobacco company shareholders who purchase the stocks in part for their high dividend yields. "They are in a business that is highly profitable that does not require a whole lot of investment," says Kwon, while noting a changing market could upend such reluctance. "This could be much different in the future, and this is something they will have to invest in. It's in its very early stages, but it has potential to become something big, and it could have an impact."
Analyst Bonnie Herzog of Wells Fargo Securities sparked media attention with a report earlier this year that e-cigarette growth will continue for the next decade and overtake traditional smoking sales for U.S. tobacco companies. A number of analysts declined to comment, citing a pending earnings period for tobacco companies, and Herzog was not available for comment. However, big brokers have generally been recommending the stocks for their dividends and steady earnings, and analysts have expressed skepticism that e-cigarettes, with less than 1 percent of the total market, will make much impact anytime soon.
Meanwhile, the regulatory and legal issues surrounding their marketing has been slowed by Washington's budget stalemate that led to government shutdown. A number of decisions are due soon that could bring clarity and more regulation.
"All of these big gains [for e-cigarettes] are coming at a time of zero regulation, no taxes and a lot of hype," says one analyst who requested U.S. News to not use his name. "The bottom line is that only a limited number of people will switch once the playing field is leveled. Our research shows that it won't happen because e-cigarettes are just not as satisfying."
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I have been selling E-Cigarette products for 2 years. We have never sold any products to minors. These products are for people who want an alternative to cigarettes. First the FDA wanted to ban these products for safety. Unfortunately for them no smoking gun was found. Studies and time are against them and they know it. So now we hear the non-sense that it is marketed to minors or a gateway to heroin.
The majority of my 500 customers are long time heavy ex-smokers. Most of them would still be smoking without these products. They realized cigarettes were killing them. This is the only hope for most of them.
My better half smoked 2+ packs a day for 35 years. Vegas would not of given odds to her quitting, but with this she beat it. Now we help others overcome. You can't imagine the feeling of hearing the stories customers tell us.
Why If you not going to quit??
Cigarette company know that so why not buy into it?
Hell it's makes them look there know 87% will fall the 1st time trying to quit.
It's a win win for them............
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[BRIEFING.COM] The major indices continue to hold a winning edge, the sharpest of which belongs to the Nasdaq. The latter has risen 0.4% today and it is easy to see why with both Google (GOOG 1080.27, +10.40) and Apple (AAPL 563.46, +3.44) posting early gains. Facebook (FB 48.28, +0.34), Twitter (TWTR 47.53, +2.58) and LinkedIn (LNKD 235.71, +2.72) are some other luminaries still attracting buying interest.
Overall, there simply hasn't been a rush ... More
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