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Apple spends $1M per month on Google AdWords - report

post #1 of 33
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A leaked internal document from Google shows how much companies spend with the search giant on AdWords, and Apple is listed as investing nearly $1 million in a one-month span.

The document, obtained by AdAge, gives a glimpse into the value of search-related advertisements through the Internet's most popular search provider. Apple was said to have spent "just under $1 million" in one month, which is the same amount as chipmaker Intel.

If June is representative of Apple's average, then the Cupertino, Calif., company spends under $12 million on search-related advertisements with Google every year.

Just 47 advertisers spent over $1 million in the month of June on Google's AdWords advertising network. Another 71 companies spent between $500,000 and $1 million, while 357 spent between $100,000 and $500,000.

Among the top 1,500 advertisers, most -- 1,356 -- opted to spend between $10,000 and $100,000.

Google's biggest advertiser in June was Apple's exclusive wireless carrier partner in the U.S., AT&T, which made a big push for the iPhone 4 launch. The company spent $8.08 million on AdWords for the month.

The report noted that AT&T is the third-largest advertiser in the U.S., and the carrier spent a total of $2.8 billion in 2009.

The data shows that some of the largest companies do not necessarily spend a great deal with Google when compared with their peers. Major brands like Disney, of which Apple Chief Executive Steve Jobs is majority shareholder, spent less than on AdWords $500,000 in June.

Google declined to comment on the figures. It said it was looking into the fact that someone leaked confidential information about its clients, and would take action accordingly.

Apple, in its 2009 Form 10-K filing with the SEC, revealed that it spent a total of $501 million in advertising last year. While the company spends considerably less than some of its rivals, like Microsoft, Apple's ad campaigns are often seen as extremely effective and sometimes become pop culture phenomena.

Late last year, Adweek named Apple's recently concluded "Get a Mac" advertisements the best ad campaign of the decade. Competitors have often parodied Apple's ads in an effort to cash in on the company's buzz.
post #2 of 33
So Google can make money...
post #3 of 33
That's not that much for a large company such as Apple. At one point I was spending $1,500 a day for two months straight.
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post #4 of 33
Quote:
Originally Posted by bloggerblog View Post

That's not that much for a large company such as Apple. At one point I was spending $1,500 a day for two months straight.

Apple seems to everywhere in tech news. But they spend very less, atleast in Google. Talk about mind share!

P.S:
Seriously? What's the blog about?
Same Apple. Same Mac. Different Take. Different Place. http://Applemacness.com
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Same Apple. Same Mac. Different Take. Different Place. http://Applemacness.com
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post #5 of 33
Quote:
Google declined to comment on the figures. It said it was looking into the fact that someone leaked confidential information about its clients, and would take action accordingly.

OMG! Google is an insane control death camp Nazi litigious lock down tyranny! Eric Schmidt is much like Hitler! No doubt any "action taken" will involve ordering the relevant legal authorities to do their bidding! They must be desperate! Etc.
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They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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post #6 of 33
Wow, what a racket(the ultimate book-ee)! Gotta give credit where credit is due, kudos to Google.
IMO- as part of their 'do no evil', give some breaks(cash back?) for good investigative news outlets, research institutions that publish etc.; instead of trying to take other technologies out( ie cell phone OS's). Just an opinion.
Hokey religions and ancient weapons are no match for a good blaster by your side, kid.
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Hokey religions and ancient weapons are no match for a good blaster by your side, kid.
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post #7 of 33
Quote:
Originally Posted by addabox View Post

OMG! Google is an insane control death camp Nazi litigious lock down tyranny! Eric Schmidt is much like Hitler! No doubt any "action taken" will involve ordering the relevant legal authorities to do their bidding! They must be desperate! Etc.

I see you are enjoying your 3 day holiday. Chill, relax. It's just a phone.

Really. Relax. That's just kinda scary and over the top.
post #8 of 33
Ahahaha!

A million a month is chump change for Apple. They have 25 billion in cash. The interest from a money market account would cover the AdWords budget twenty times over.

Quote:
Originally Posted by DrDoppio View Post

So Google can make money...

If you read their SEC filings, this is about the only way they do. AdWord sales makes up something like 98% of their revenue. They don't make money doing anything else.

Note that Google is quite profitable doing so.
post #9 of 33
AT&T needs to advertise? As if nobody has ever heard of AT&T in the US? They're only the Phone Company.
It'd be like if Obama had to spend $8mil a month advertising that he was the president.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #10 of 33
Quote:
Originally Posted by MenLoveToys View Post

I see you are enjoying your 3 day holiday. Chill, relax. It's just a phone.

Really. Relax. That's just kinda scary and over the top.

Thanks for registering on AI just to completely miss a joke.

Had you been around you would have been privy to the hysterical hyperbole surrounding various moves on Apple's part concerning trade secrets and the like.
They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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post #11 of 33
Quote:
Originally Posted by Suddenly Newton View Post

AT&T needs to advertise? As if nobody has ever heard of AT&T in the US? They're only the Phone Company.
It'd be like if Obama had to spend $8mil a month advertising that he was the president.

Actually the way I understand ad words, you have your ad and certain key terms associated to it, not unlike keywords for a website. You pay to have your ad appear when someone puts one of those terms in a search. The more you pay, the more your ad will appear or the higher in the list.

So Apple would be paying big bucks to make sure if someone puts in a terms like iphone, they are the top result and not some joeschmo repair shop in Scanton or some 'we will unlock your iphone' group. And so on

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #12 of 33
Quote:
Originally Posted by cvaldes1831 View Post

... If you read their SEC filings, this is about the only way they do. AdWord sales makes up something like 98% of their revenue. They don't make money doing anything else. ...

That's why Google is giving away Android. So they can spam fandroids with AdMob ads. And they can also spew AdMob spam at people who thought they didn't want to pay early termination fees to Verizon, plus ignorant people who bought Android phones because they just didn't know any better ("Oooh, two for one? What a great fire-sale price! And it comes with a big-azz robotic arm!").

But AdDroid's days are numbered. Oracle's lawsuit has merit: Google clearly violated the terms of the Java license agreement. If you are not 100% compliant, you are in violation, and Google is using a non-compliant VM, Dalvik, which is not a JVM (Java Virtual Machine) at all. And there is legal precedent: Microsoft paid Sun $20 million way back in 2001 for Java license agreement violations.

But Larry Ellison doesn't need money, Oracle doesn't need money, and the terms of the lawsuit requires Android software to be "impounded and destroyed." Larry is going for blood. Maybe he got sick and tired of all that AdDroid spam...

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post #13 of 33
Quote:
Originally Posted by bloggerblog View Post

That's not that much for a large company such as Apple. At one point I was spending $1,500 a day for two months straight.

Did it work for you? Would you do it again?
post #14 of 33
Quote:
Originally Posted by addabox View Post

Thanks for registering on AI just to completely miss a joke.

Had you been around you would have been privy to the hysterical hyperbole surrounding various moves on Apple's part concerning trade secrets and the like.


Quote:
OMG! Google is an insane control death camp Nazi litigious lock down tyranny! Eric Schmidt is much like Hitler! No doubt any "action taken" will involve ordering the relevant legal authorities to do their bidding! They must be desperate! Etc.

Just because I'm a new registrant it doesn't mean I don't read the forum.
You are not exactly known on this board for being open minded.

Seriously, I'd take a look at getting some help after reading your post. Its disturbing.
post #15 of 33
Quote:
Originally Posted by MenLoveToys View Post

Just because I'm a new registrant it doesn't mean I don't read the forum.
You are not exactly known on this board for being open minded.

Seriously, I'd take a look at getting some help after reading your post. Its disturbing.

Let me guess. You've reregistered under a new name and you've got an axe to grind?

If you find an obvious goof on Apple bashing "disturbing" I can't help you.
They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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post #16 of 33
Quote:
Originally Posted by DrDoppio View Post

So Google can make money...

The real question is how much longer will Google enjoy that > $12 million seeing as Apple has made Bing a first tier and are working on their own advertisement solutions, along with maps and much more.
post #17 of 33
Quote:
Originally Posted by AppleInsider View Post

Major brands like Disney, of which Apple Chief Executive Steve Jobs is majority shareholder, spent less than on AdWords $500,000 in June.

no, dyslexic one, he's not majority shareholder in disney. disney has 1.9 billion shares out; jobs holds about 140 million of them.
"Personally, I would like nothing more than to thoroughly proof each and every word of my articles before posting. But I can't."

appleinsider's mike campbell, august 15, 2013
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"Personally, I would like nothing more than to thoroughly proof each and every word of my articles before posting. But I can't."

appleinsider's mike campbell, august 15, 2013
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post #18 of 33
Quote:
Originally Posted by Suddenly Newton View Post

AT&T needs to advertise? As if nobody has ever heard of AT&T in the US? They're only the Phone Company.
It'd be like if Obama had to spend $8mil a month advertising that he was the president.

AT&T would be better served spending $2.8 billion on their network than making their lame-ass rethink possible ads.
post #19 of 33
For Apple, it is chump change well spent.
post #20 of 33
Quote:
Originally Posted by Suddenly Newton View Post

AT&T needs to advertise? As if nobody has ever heard of AT&T in the US? They're only the Phone Company.
It'd be like if Obama had to spend $8mil a month advertising that he was the president.

Precisely why Apple is idiotic for spending this kind of money ("chump change" or not) merely on "AdWords." It's ridiculous for a company as well-known as Apple to do this, and as an AAPL investor for more than 11 years, I do not like it at all. Another part of it that I hate is the fact that Apple is paying this kind of money to Google, whom we all know is the New Microsoft, intent on copying anything Apple is successful at.

Steve Jobs needs to do the right thing and cut off all this AdWord money to Google immediately. And if indeed Apple does still need to advertise, there are better ways to do it than with AdWords.
post #21 of 33
How much does Google pay Apple to be its default search engine on every device? How much does Google pay Apple for every search directed from an Apple product. Would be interesting to know.
post #22 of 33
Quote:
Originally Posted by JDW View Post

Precisely why Apple is idiotic for spending this kind of money ("chump change" or not) merely on "AdWords." It's ridiculous for a company as well-known as Apple to do this, and as an AAPL investor for more than 11 years, I do not like it at all. Another part of it that I hate is the fact that Apple is paying this kind of money to Google, whom we all know is the New Microsoft, intent on copying anything Apple is successful at.

Steve Jobs needs to do the right thing and cut off all this AdWord money to Google immediately. And if indeed Apple does still need to advertise, there are better ways to do it than with AdWords.

It's a business decision not a John Wayne movie. If Google AdWords drive more business to Apple than it costs and brings other less tangible results like getting something into people's memory, then it behoves Apple to do it. As a shareholder I'm sure you want them to maximise profits... no?

Steve said about Google products on iOS, and I'm clearly paraphrasing... If they make the best maps and the best search then we want our customers to have that experience. Google make great products. In some areas we compete with them and in other areas we work cooperatively. We want to put out the best coolest product we can. If customers think someone else is doing this better we'll get the message when we're not selling product. Right now, we're not getting that message.
post #23 of 33
oh well, this info wasn't very hard to find at all thanks to Google:

Source : Tom's Guide US
http://www.tomsguide.com/us/Google-A...news-5818.html


Google Pays Apple $100,000,000/Year for Search
8:20 PM - February 12, 2010 - By Jane McEntegart -


Today we learn that Google is actually paying a lot of money for the privilege of appearing as the default search engine in Safari. The Business Insider cites people familiar with the matter who say Apple's contract with Google earns the Cupertino-based electronics company $100 million a year.

If the Bing rumors are true, it's very likely that Microsoft is offering Apple more money, hence the latter's decision to give Google the boot. However, it's also possible that with Google now firmly established in the smartphone market and presenting a real threat to the iPhone, Apple just wants to switch search providers for the sake of keeping away from the competition.
post #24 of 33
Quote:
Originally Posted by addabox View Post

OMG! Google is an insane control death camp Nazi litigious lock down tyranny! Eric Schmidt is much like Hitler! No doubt any "action taken" will involve ordering the relevant legal authorities to do their bidding! They must be desperate! Etc.

Jesus, settle the hell down and drink your juice Shelby....
post #25 of 33
Quote:
Originally Posted by AppleInsider View Post

If June is representative of Apple's average, then the Cupertino, Calif., company spends under $12 million on search-related advertisements with Google every year.

So now we really know who is financing Android!
post #26 of 33
Quote:
Originally Posted by Mister Snitch View Post

Did it work for you? Would you do it again?

Online retail stores have no other options, Yahoo and Bing combined hardly bring in 1/10th of what Google brings in. Depending on what business you're in, Google ends up making more money from your sales, and in many cases you end up paying all your profits to Google, some clicks are well over $5 each. That is why businesses pay big-bucks for organic SEO.

Of course I'll do it again as an online retailer, there are no other choices to get new businesses running from day 1.

If Apple does not go on Google's Adwords, they will not show up in the top 2 or 3 search results, because those are reserved for paid advertisers. Besides, Apple probably has one of the nations most experienced SEO personnel, they can navigate and tweak Analytics very efficiently. Adwords clicks also help with Organic SEO.

Moreover, if Apple does not pay for Adwords they would have to tackle other experienced SEO experts from Dell and Microsoft who can bring their search results to appear even when you search for Apple products. As an example, try Googling MacBook and you'll see that Microsoft has an campaign for PC vs Mac: Get the facts.
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post #27 of 33
Quote:
Originally Posted by coolcat View Post

Jesus, settle the hell down and drink your juice Shelby....

Sigh.
They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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post #28 of 33
I use a hosts file to block pretty much all of the on-line advertizing on websites.

And I bet that a lot of that advertizing money that google receives is the result of click-fraud and other forms of bot-net activity.
post #29 of 33
As Steve said, they may compete on various fronts, but, "there's no reason to be rude...!"
post #30 of 33
Quote:
Originally Posted by SumGuy View Post

I use a hosts file to block pretty much all of the on-line advertizing on websites.

And I bet that a lot of that advertizing money that google receives is the result of click-fraud and other forms of bot-net activity.

I assume that Google tracks click fraud effectively since 95% their income comes through Adwords.
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post #31 of 33
Quote:
Originally Posted by SumGuy View Post

I use a hosts file to block pretty much all of the on-line advertizing on websites.

And I bet that a lot of that advertizing money that google receives is the result of click-fraud and other forms of bot-net activity.

Really? Mind sharing some of the contents of that hosts file?

Life is too short to drink bad coffee.

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Life is too short to drink bad coffee.

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post #32 of 33
Quote:
Originally Posted by All Day Breakfast View Post

It's a business decision not a John Wayne movie. If Google AdWords drive more business to Apple than it costs and brings other less tangible results like getting something into people's memory, then it behoves Apple to do it. As a shareholder I'm sure you want them to maximise profits... no?

I disagree with that "business decision." And you are guessing, with no facts whatsoever, to assume that AdWords "drive more business to Apple than..."

We must also remember that Steve Jobs has made a lot of decisions in his business that do in fact resemble what one sees in a John Wayne movie. Steve Jobs is truly driven by emotion. And part of that emotional side has made him successful. You are trying to argue from a more logical and traditional business standpoint -- which is not what has led Apple to success.

My contention is that there are better ways to advertise and "get the word out." I don't believe that "AdWords are Apple's only choice." How silly! And since there are better ways to advertise, it makes little sense to continue advertising in a way that pays money to an entity that is fast becoming one of your biggest competitors. It may have made good sense when Apple and Google were buddy-buddy, but not any longer. Call it John Wayne, but that's the facts of the matter.

Why fund something you don't want to see around in the future? That is the basis for why Steve Jobs made the hard decision to not support Flash on Apple mobile products. Adobe failed to deliver decent performance, they lost the trust of Jobs, and now Jobs doesn't want to see Flash continue in its popularity, which surely would occur if Apple maintained Flash compatibility on all iOS devices.

So sometimes, big companies can do the right thing by going the John Wayne route. And I want to see some of the big guns pulled out to keep AAPL growing higher and higher in the long term. With Google out to copy anything that has given Apple success, I don't want to see Apple fund Google directly or indirectly. As a shareholder, that's prudent thinking.
post #33 of 33
Quote:
Originally Posted by mstone View Post

Really? Mind sharing some of the contents of that hosts file?

http://www.mvps.org/winhelp2002/hosts.htm

http://www.mvps.org/winhelp2002/hosts.zip
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