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

Posted:
in General Discussion edited January 2014
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.
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Comments

  • Reply 1 of 32
    drdoppiodrdoppio Posts: 1,132member
    So Google can make money...
  • Reply 2 of 32
    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.
  • Reply 3 of 32
    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?
  • Reply 4 of 32
    addaboxaddabox Posts: 12,660member
    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.
  • Reply 5 of 32
    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.
  • Reply 6 of 32
    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.
  • Reply 7 of 32
    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.
  • Reply 8 of 32
    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.
  • Reply 9 of 32
    addaboxaddabox Posts: 12,660member
    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.
  • Reply 10 of 32
    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
  • Reply 11 of 32
    sockrolidsockrolid Posts: 2,788member
    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...
  • Reply 12 of 32
    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?
  • Reply 13 of 32
    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. It?s disturbing.
  • Reply 14 of 32
    addaboxaddabox Posts: 12,660member
    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. It?s 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.
  • Reply 15 of 32
    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.
  • Reply 16 of 32
    poochpooch Posts: 768member
    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.
  • Reply 17 of 32
    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.
  • Reply 18 of 32
    801801 Posts: 271member
    For Apple, it is chump change well spent.
  • Reply 19 of 32
    jdwjdw Posts: 753member
    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.
  • Reply 20 of 32
    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.
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