Apple's advertising budget.

[*LTD*]

http://www.youtube.com/watch?v=MimCZikP8cY

http://brainstormtech.blogs.fortune.cnn.com/2009/10/28/apples-2009-ad-budget-half-a-billion/


Those Get-a-Mac spots aren't cheap, but they deliver a lot of bang for the buck

Apple (AAPL) shells out a ton of money for advertising. In fiscal 2009 it spent $501 million, according to the 10-K form filed Tuesday. That's up from $486 million in 2008 and $467 million in 2007.

But half a billion doesn't seem like so much when it's compared with the $1.4 billion Microsoft (MSFT) spent in fiscal 2009, or the $811 million Dell (DELL) spent on ads I can't remember ever seeing.

In fact, as a percentage of revenue, Apple has actually been decreasing its ad spending every year for the past eight, from nearly 5% in 2001 to 1.37% today (1.17% if you use non-GAAP revenue). That's less than half the 3.6% of revenue Research in Motion's (RIMM) spends advertising BlackBerries. (See chart below.)

Fiscal 2009:

Guess we know who gets more bang for the buck.

 

[Winni]

Three of those companies are also enterprise players and thus have to target more than just one market with their ad campaigns. Apple focuses only on the consumer audience. That's one reason why their budget is smaller than that of some of the other players.

Of course, their huge amount of fanboys also helps to reduce the advertising costs significantly. And having founded such a strong following of fanatics is the real ingenious success of Apple's marketing department.

 

[thegoldenmackid]

Their advertising is effective. HP's...?

 

[FX120]

Microsoft and Dell also roll "training conferences" and expositions into their advertising budgets which aren't targeted at consumers. I would bet that is where the majority of that money is going.

It's not like the entire of the budget is spent on TV adverts.

 

[jaw04005]

I find it hard to believe Microsoft’s advertising budget is that high. That has to include marketing dollars that are spent with partners (the Windows logo on Dell, HP, Sony, etc commercials) and other miscellaneous items.

It would be more interesting to see what Microsoft spends on direct advertisements compared to Apple. I guess what I really want to know is what Microsoft spends on direct commercials, web and print ads compared to Apple.

 

[*LTD*]

Of course, their huge amount of fanboys also helps to reduce the advertising costs significantly. And having founded such a strong following of fanatics is the real ingenious success of Apple's marketing department.

You don't get enthusiastic fans by accident. It's called Brand Loyalty, and Apple has earned it.

 

[MTI]

Technically, Microsoft has more to market and each product area likely has its own marketing budget. Apple doesn't have a search engine or game platform and doesn't actively pitch their productivity software in the same manner that MS does.

 

[xIGmanIx]

doesn't really tell the whole story because we don't know what each company rolls up into those numbers. We can't really get a true return on investment without it. I would be interested to know if apple tracks about how much $$$ it takes to switch one user.

 

[Consultant]

I find it hard to believe Microsoft’s advertising budget is that high. That has to include marketing dollars that are spent with partners (the Windows logo on Dell, HP, Sony, etc commercials) and other miscellaneous items.

It would be more interesting to see what Microsoft spends on direct advertisements compared to Apple. I guess what I really want to know is what Microsoft spends on direct commercials, web and print ads compared to Apple.

Paying off shill for good reviews?