Myth: Apple Success Due to Advertising? (Microsoft Does it Better!?)

Monday, May 10, 2010
By OP Editor

“Apple is an amazing marketing engine.” Microsoft apologists often claim that advertising is a major reason of recent decade of Apple successes. But is that claim based on fact or fiction?

Microsoft Spends Half Billion Dollars On Advertising in 2009

With a decade of success in competitive (non-monopoly) markets, such as portable music player, music distribution, mobile app distribution, and mobile phone industry, Apple now has 93% of revenue (recent quarter) and 87% of market value (May 7, 2010) as Microsoft. Apple even surpassed Microsoft in S&P weighted market cap in April 2010.

However, Apple haters habitually refuse to believe that the success of Apple is due to the quality of Apple products (when in reality, Apple products are a joy to use). Instead, they often claim that Apple products are successful due to advertisement voodoo. Well, advertise this:

Apple vs. Microsoft Advertising Expenses 2009

Apple, the Cupertino i company, cons customers with advertising? Not exactly.

In reality, Microsoft spends over twice-as-much on advertising as Apple, recent financial statements showed. That results in only 7% more revenue than Apple.

So no, Apple’s success is not due to advertising. If any company is dependent on marketing, it would be Microsoft.

With over a half BILLION dollars in 2009 ad budget, Microsoft is one of the most prolific in the world when it comes to ad spending as a percent of revenue. However, when is the last time you saw (or remember) an Microsoft ad? So how do you think Microsoft spends that ad money?

How much of that is spend to brainwash Microsoft “certified” IT drones who regurgitates Microsoft PR, despite the fact that Apple products have lower total cost of ownership? How much of that is spend to fatten up the Microsoft shills?

Unfortunately, the half a Billion dollars Microsoft ad spending is not the only form of Microsoft marketing. It does not even include the significant under-the-table-incentives Microsoft provides to PC makers to advertise Microsoft products (and to NOT advertise rival products such as Linux). Marketing, that’s probably how Microsoft stays in control of is PC monopoly.

Image credit:
CHART OF THE DAY: Here’s How Much Tech Companies Spend On Advertising [businessinsider]


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Tags: Analysis, Apple, Microsoft, Myths

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