or Connect
AppleInsider › Forums › General › General Discussion › Apple looks to rein in marketing costs, accelerates internal ad team buildup
New Posts  All Forums:Forum Nav:

Apple looks to rein in marketing costs, accelerates internal ad team buildup

post #1 of 45
Thread Starter 
The world's wealthiest technology company is in the midst of pulling together the industry's largest in-house advertising agency, a move said to be motivated in part by a desire to reduce costs and in part by a need to be more agile and roll out creative more quickly.



A plan to double the size of Apple's internal ad team to some 600 staffers has been expanded, according to Ad Age, with the target now being a lofty 1,000 employees. The group, headed by creative director Hiroki Asai, will constitute possibly the biggest house agency on earth.

Despite reports that Apple has begun pitting the house team against TBWA\Media Arts Lab -- Apple's agency of record -- and inviting a number of other agencies to pitch campaigns, the iPhone maker isn't thought to be on the verge of parting ways with its longtime partners.

Instead, the buildup is believed to represent a new all-hands-on-deck approach to Apple's marketing as it shifts from primarily television spots and print placements to a new strategy that integrates far-reaching internet campaigns. That includes an increasingly visible presence on social media, a medium that Apple has traditionally held at arm's length and which requires a more agile approach than conventional media.

"They said they have so much going on from a marketing-communications standpoint that MAL is part of their plan, but their expectations for marketing are much greater than what MAL is built to do," one advertising executive said to AdAge. That sentiment was echoed by another industry insider, who said that each of Apple's existing agencies were "max busy."

As part of that shift, the company could be looking to reallocate funds, a likely explanation for Apple's recent audit of TBWA\MAL and its media buyer. That audit was designed "partly to find some cost savings," a source told the Wall Street Journal.

Apple spent more than $1 billion on advertising last year and is believed to be worth as much as $150 million in yearly revenues for TBWA\MAL, which serves no other clients.
post #2 of 45
Quote:
... to be more agile and roll out creative more quickly.

 

What does that mean?  That they're finally going to innovate?  

 

/s.

post #3 of 45
Great idea.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #4 of 45
This isn't a cost-saving measure; this is about controlling the message.
Snarky Mac commentary, occasionally using bad words.
themacadvocate.com
Reply
Snarky Mac commentary, occasionally using bad words.
themacadvocate.com
Reply
post #5 of 45
Lol. More Internet advertising? I've never seen an Apple ad on AppleInsider outside of the articles about Apple marketing. But I've seen plenty of competitor ads served up on this site 1wink.gif

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #6 of 45

If Apple doesn't learn how to spend like Samsung, they'll never amount to anything.

 

...heh...

post #7 of 45
Quote:
Originally Posted by TheMacadvocate View Post

This isn't a cost-saving measure; this is about controlling the message.


Not sure what you mean. Apple approves all ads anyway. They are always in control.
post #8 of 45
In related news, Sammy is also considering Apple's in house advertising group. Literally. Spies are everywhere.
post #9 of 45
Why not stick Jonny in charge of that as well, or perhaps that dre fella. Seriously hope this doesn't turn in to some diluted corporate dry advertising without vision and innovation.
post #10 of 45
Quote:
Originally Posted by jungmark View Post


Not sure what you mean. Apple approves all ads anyway. They are always in control.

There is so much marketing that really does not require an external ad agency. Apple's website alone is a huge marketing campaign. By having a high quality in house marketing dept to take care of this run of the mill stuff (no less important), makes sense. 

post #11 of 45
Maybe Cook needs to move marketing from Schiller to someone else. Wouldn't hurt to have a fresh leadership there. I don't mind Apple's recent marketing campaigns but a lot of people do feel they lack the excitement of past campaigns.
post #12 of 45

This move has Phil Schiller written all over it.

Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
Reply
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
Reply
post #13 of 45
Quote:
Originally Posted by paxman View Post

There is so much marketing that really does not require an external ad agency. Apple's website alone is a huge marketing campaign. By having a high quality in house marketing dept to take care of this run of the mill stuff (no less important), makes sense. 

Go to most any European airport and Samsung's name is plastered all over the place. Apple's on the other hand is virtually non existent. North America is a different story.
Brand awareness may help in such places.
post #14 of 45
Quote:
Originally Posted by zaba View Post

Why not stick Jonny in charge of that as well, or perhaps that dre fella. Seriously hope this doesn't turn in to some diluted corporate dry advertising without vision and innovation.

Yet another stellar armchair quarterback's idea.

Daniel Swanson

Reply

Daniel Swanson

Reply
post #15 of 45
Quote:
Originally Posted by Rogifan View Post

Maybe Cook needs to move marketing from Schiller to someone else. Wouldn't hurt to have a fresh leadership there. I don't mind Apple's recent marketing campaigns but a lot of people do feel they lack the excitement of past campaigns.

Wrong. This man-up will give Phil much more effective and controllable resources with which to do his job.

Daniel Swanson

Reply

Daniel Swanson

Reply
post #16 of 45
Quote:
Originally Posted by Ireland View Post
 

This move has Phil Schiller written all over it.

As well it should. It's called doing what's necessary in order to do one's job.

Daniel Swanson

Reply

Daniel Swanson

Reply
post #17 of 45
Quote:
Originally Posted by TheDBA View Post

Go to most any European airport and Samsung's name is plastered all over the place. Apple's on the other hand is virtually non existent. North America is a different story.
Brand awareness may help in such places.

LOL. Like Terminal 5 at Heathrow? Aka "Terminal Samsung Galaxy S5"? (Talk about Idiocracy.)

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #18 of 45

This may be about reducing costs but there is a potential downside.  An effective external agency will challenge your perceptions of your own products.  An internal agency is much more likely to rehash old themes.

post #19 of 45
Quote:
Originally Posted by TheDBA View Post


Go to most any European airport and Samsung's name is plastered all over the place. Apple's on the other hand is virtually non existent. North America is a different story.
Brand awareness may help in such places.

Apple's not about to copy Samsung--especially not shotgun its ad/marketing budget ineffectively. Creating an in-house agency will enable Apple to carefully build a capable and appropriately motivated team with ample resources and budget to get out some great products at long last.

Daniel Swanson

Reply

Daniel Swanson

Reply
post #20 of 45
Quote:
Originally Posted by Ireland View Post
 

This move has Phil Schiller written all over it.

 

Perhaps. Feels like 100% internal politics and a move to consolidate power. When people stake out power positions, the organization shifts focus inward. I don't see this as a good thing.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #21 of 45
Quote:
Originally Posted by Rogifan View Post

Maybe Cook needs to move marketing from Schiller to someone else. Wouldn't hurt to have a fresh leadership there. I don't mind Apple's recent marketing campaigns but a lot of people do feel they lack the excitement of past campaigns.

 

Dr Dre is the man for the job or maybe Tyrese

Apple Purchases last 12 months - iPhone 5S (two), iPhone 6, iPhone 6+ (two), iPadAir, iPadAir2, iPadMini2, AppleTV (two), MacMini, Airport Extreme, iPod Classic.
Reply
Apple Purchases last 12 months - iPhone 5S (two), iPhone 6, iPhone 6+ (two), iPadAir, iPadAir2, iPadMini2, AppleTV (two), MacMini, Airport Extreme, iPod Classic.
Reply
post #22 of 45
Quote:
Originally Posted by Adam Venier View Post
 

This may be about reducing costs but there is a potential downside.  An effective external agency will challenge your perceptions of your own products.  An internal agency is much more likely to rehash old themes.

In what universe? This is Apple. Its corporate culture is the one responsible for its current success. How many of us know more than a sliver of just what those values are? I can't imagine wanting anyone other than myself to "challenge my perceptions." I'M the one to do that--just like what I'm sure Apple wants to do.

Daniel Swanson

Reply

Daniel Swanson

Reply
post #23 of 45
Quote:
Originally Posted by Rogifan View Post

Maybe Cook needs to move marketing from Schiller to someone else. Wouldn't hurt to have a fresh leadership there. I don't mind Apple's recent marketing campaigns but a lot of people do feel they lack the excitement of past campaigns.

Based on what non anecdotal evidence? The "Your verse" campaign is great as is the "Powerful" campaign.
post #24 of 45
Quote:
Originally Posted by jungmark View Post


Based on what non anecdotal evidence? The "Your verse" campaign is great as is the "Powerful" campaign.

 

It's not a bad campaign, but it isn't great. It has gotten Apple attention, which has some benefit. I personally find it a bit obscure, however in the overall scheme of things it is not terrible.

 

I find it interesting that Apple would hire the CEO of Burberry for retail, but they haven't hired Lee Clow or Hal Riney or their equivalent from the world of advertising or marketing to work internally and lead a team at Apple. Why not hire the "best of the best of the best"?

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #25 of 45

"Apple spent more than $1 billion on advertising last year and is believed to be worth as much as $150 million in yearly revenues for TBWAMAL, which serves no other clients."

 

Why don't Apple just buy TBWAMAL since Apple is their only client.

post #26 of 45
Quote:
Originally Posted by SpamSandwich View Post

It's not a bad campaign, but it isn't great. It has gotten Apple attention, which has some benefit. I personally find it a bit obscure, however in the overall scheme of things it is not terrible.

I find it interesting that Apple would hire the CEO of Burberry for retail, but they haven't hired Lee Clow or Hal Riney or their equivalent from the world of advertising or marketing to work internally and lead a team at Apple. Why not hire the "best of the best of the best"?

...yet. But as they say, some folks rather be the boss rather than an underling.
post #27 of 45
1000 staff for marketing seems to suggest something else is going on? perhaps expansion into Google stronghold with increased focus on iAd, servicing clients with Ads?
post #28 of 45
Meanwhile I saw a "Chicken Fat " excise Apple twice yesterday that was all over the place. The song was better than the ad itself. Like what were the aps and why only the 5s at the end? I would think the 5c would be more of a sport device than a 5s which seems more of a business tool.
 
Where's the new Apple TV?
 
 
(So Y is the new X?   Zzzzzzzzzz......)
Reply
 
Where's the new Apple TV?
 
 
(So Y is the new X?   Zzzzzzzzzz......)
Reply
post #29 of 45

I have no doubt that Apple can produce better, more informative ads.  They have the technology in house - maybe even the people.  What I personally would like to see is snippets what the products can do.  Often I watch an ad (not necessarily an Apple ad) and I say to my wife: What are they trying to sell or say ?  When I show people what my Fall 2010 MacBook Air is capable of doing, they often say I did not know an Apple could do that.  

 

Apple Products and software have some amazing features and capabilities, but we hardly see anything on TV about these features.  Having an engineering degree and a business degree I may have a different perspective than others.  This is not necessarily better by any means.  I am sure it takes a long time to produce an ad from inception to finish and I believe this can be reduced by an Apple in-house team.

post #30 of 45
Originally Posted by AppleInsider View Post
... in part by a need to be more agile and roll out creative more quickly.

 

And more secretly.  You know, the doubling down thing.

Sent from my iPhone Simulator

Reply

Sent from my iPhone Simulator

Reply
post #31 of 45
Quote:
Originally Posted by pazuzu View Post

Meanwhile I saw a "Chicken Fat " excise Apple twice yesterday that was all over the place. The song was better than the ad itself. Like what were the aps and why only the 5s at the end? I would think the 5c would be more of a sport device than a 5s which seems more of a business tool.

Maybe because the 5c only has an A6. No A7 chip with M7 motion coprocessor. 

For your sake, I hope you're right.
Reply
For your sake, I hope you're right.
Reply
post #32 of 45
Quote:
Originally Posted by GTBuzz View Post
 

I have no doubt that Apple can produce better, more informative ads.  They have the technology in house - maybe even the people.  What I personally would like to see is snippets what the products can do.  Often I watch an ad (not necessarily an Apple ad) and I say to my wife: What are they trying to sell or say ?  When I show people what my Fall 2010 MacBook Air is capable of doing, they often say I did not know an Apple could do that.  

 

Apple Products and software have some amazing features and capabilities, but we hardly see anything on TV about these features.  Having an engineering degree and a business degree I may have a different perspective than others.  This is not necessarily better by any means.  I am sure it takes a long time to produce an ad from inception to finish and I believe this can be reduced by an Apple in-house team.

I agree; my favorite OSX feature is desktop Spaces, but very few Windows users are aware of that feature and many Mac users also have no idea. I think the reason is that Apple limits feature messages is that they are trying to push the "experiences" aspects, rather than the tech aspects of the products.

 

But again, I agree. Ben Thompson at Stretechery.com has written a lot about how he feels Apple misses the mark in their iPad marketing and advertising.

 

It's also surprising that I rarely see MacBook Air and MacBook Pro TV commercials. Considering they'd like to grow this product segment, I'm quite surprised. 

For your sake, I hope you're right.
Reply
For your sake, I hope you're right.
Reply
post #33 of 45
Quote:
Originally Posted by jungmark View Post


...yet. But as they say, some folks rather be the boss rather than an underling.

 

This is true, but as we've seen with Jimmy Iovine and Angela Ahrendts, a metric ton of money has a way of changing minds.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #34 of 45
Quote:
Originally Posted by SpamSandwich View Post

It's not a bad campaign, but it isn't great. It has gotten Apple attention, which has some benefit. I personally find it a bit obscure, however in the overall scheme of things it is not terrible.

I find it interesting that Apple would hire the CEO of Burberry for retail, but they haven't hired Lee Clow or Hal Riney or their equivalent from the world of advertising or marketing to work internally and lead a team at Apple. Why not hire the "best of the best of the best"?
Yeah I'm a bit surprises too. Sure Phil has been in the marketing role for a long time. But that wasn't really his background. Heck, according to his Apple bio his degree is in Biology. lol.gif. I'd love to see Cook bring on some marketing powerhouse and put Apple's marketing resources under them.
post #35 of 45
Quote:
Originally Posted by pazuzu View Post

Meanwhile I saw a "Chicken Fat " excise Apple twice yesterday that was all over the place. The song was better than the ad itself. Like what were the aps and why only the 5s at the end? I would think the 5c would be more of a sport device than a 5s which seems more of a business tool.
I'd love to know who suggested that Gigantic song for the last iPhone ad. Did they not know the song is about someone's rather large genitals?
post #36 of 45

To show you how stuff like this can be spun any way you want, here’s the headline from Business Insider...

 

Apple Is Trying To Hire 1,000 New Ad Execs — Here's Why Many Of Them Are Saying 'No'"

 

The article goes on to explain that Google, not Apple, is the preferred brand these days so no self-respecting ad executive wants to join Apple. They want to be on a winning team.

 

Wow! what a spin.

post #37 of 45
Quote:
Originally Posted by lkrupp View Post
 

To show you how stuff like this can be spun any way you want, here’s the headline from Business Insider...

 

Apple Is Trying To Hire 1,000 New Ad Execs — Here's Why Many Of Them Are Saying 'No'"

 

The article goes on to explain that Google, not Apple, is the preferred brand these days so no self-respecting ad executive wants to join Apple. They want to be on a winning team.

 

Wow! what a spin.

 

BusinessInsider is as horrible as HuffingtonPost as far as click bait goes. They are the TMZ of business reportage.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #38 of 45
Quote:
Originally Posted by Adam Venier View Post
 

This may be about reducing costs but there is a potential downside.  An effective external agency will challenge your perceptions of your own products.  An internal agency is much more likely to rehash old themes.

 

Exactly. Outside consultants don't see the same scenery internal employees do.

post #39 of 45
Quote:
Originally Posted by AlmondRoca View Post

 

Exactly. Outside consultants don't see the same scenery internal employees do.

Plus if they don't do a great job, they get fired and the whole agency feels it.
Edited by SpamSandwich - 6/10/14 at 2:14pm

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #40 of 45
Quote:
Originally Posted by GTBuzz View Post
 

I have no doubt that Apple can produce better, more informative ads.  They have the technology in house - maybe even the people.  What I personally would like to see is snippets what the products can do.  Often I watch an ad (not necessarily an Apple ad) and I say to my wife: What are they trying to sell or say ?  When I show people what my Fall 2010 MacBook Air is capable of doing, they often say I did not know an Apple could do that.  

 

Apple Products and software have some amazing features and capabilities, but we hardly see anything on TV about these features.  Having an engineering degree and a business degree I may have a different perspective than others.  This is not necessarily better by any means.  I am sure it takes a long time to produce an ad from inception to finish and I believe this can be reduced by an Apple in-house team.

The purpose of advertising is not to "inform" as much as it is to "position." The product is cleverly/craftily positioned with desirable other items, elements, activities, subjects, etc. to make it seem more attractive, desirable, etc. Any enlightenment about the product's features should happen at the store after the person has been lured there by the ad, and when they are in the best possible position to actually buy it.

Daniel Swanson

Reply

Daniel Swanson

Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Discussion
AppleInsider › Forums › General › General Discussion › Apple looks to rein in marketing costs, accelerates internal ad team buildup