Microsoft's ads doing damage to Apple: study
Even as critics have attacked Microsoft for bending the truth in its PCs-are-cheaper ad campaign, one firm's research shows that it might be working and turning the public minds, though not necessarily wallets, away from Apple.
After talking regularly with 5,000 people over the course of several months, ad trackers at BrandIndex discovered that Microsoft overtook Apple in value perception scores -- the belief that a given brand gives more value for money -- starting from the end of March, or roughly when Microsoft began its Laptop Hunters ad campaign on TV and online.
Where Apple had crested as high as a score of 70 in late February, the advent of Microsoft's promo spots has led to a gradual but noticeable decline that, as of the end of the study on May 12th, gave the Mac maker a score of just 12 points on the study's charts. Microsoft, meanwhile, has almost uniformly risen in its perceived value from very nearly zero (neutral) to 46 points this month, or more than three times Apple's portrayed worth.
The analyst company's global managing director, Ted Marzilli, treats this as a role reversal prompted by the ads. He sees Apple as having regularly trumped Microsoft in the past with a younger, 18-to-35 crowd more receptive to its 'cool' but now challenged by reminders that Macs are frequently more expensive. Many of these are more conscious about what they spend and, particularly in a tough economy, are more likely to think twice about their spending.
"Apple did a great job of putting Microsoft on the defensive," Marzilli told AdAge. "It made them look old, stodgy, complicated to use and unhip. But Microsoft has started to hit back, and younger folks are more cost- or value-focused."
Value perception scores for Apple and Microsoft in 2009; Microsoft's ads started in late March. | Image credits: AdAge.
Cupertino-based Apple has still managed to claw back some of its share in the 35- to 49-year-old set and is tied with Microsoft for the older demographic.
Whether or not Microsoft's campaign reaps any rewards for its investment as part of a larger $300 million project to rejuvenate the Windows name is considerably less certain; BrandIndex tracks perception and not actual purchases. Apple is still expected to ship fewer Macs in spring than it did last year but in line with expectations reflecting the economic reality rather than the effect of an attack by Microsoft.
After talking regularly with 5,000 people over the course of several months, ad trackers at BrandIndex discovered that Microsoft overtook Apple in value perception scores -- the belief that a given brand gives more value for money -- starting from the end of March, or roughly when Microsoft began its Laptop Hunters ad campaign on TV and online.
Where Apple had crested as high as a score of 70 in late February, the advent of Microsoft's promo spots has led to a gradual but noticeable decline that, as of the end of the study on May 12th, gave the Mac maker a score of just 12 points on the study's charts. Microsoft, meanwhile, has almost uniformly risen in its perceived value from very nearly zero (neutral) to 46 points this month, or more than three times Apple's portrayed worth.
The analyst company's global managing director, Ted Marzilli, treats this as a role reversal prompted by the ads. He sees Apple as having regularly trumped Microsoft in the past with a younger, 18-to-35 crowd more receptive to its 'cool' but now challenged by reminders that Macs are frequently more expensive. Many of these are more conscious about what they spend and, particularly in a tough economy, are more likely to think twice about their spending.
"Apple did a great job of putting Microsoft on the defensive," Marzilli told AdAge. "It made them look old, stodgy, complicated to use and unhip. But Microsoft has started to hit back, and younger folks are more cost- or value-focused."
Value perception scores for Apple and Microsoft in 2009; Microsoft's ads started in late March. | Image credits: AdAge.
Cupertino-based Apple has still managed to claw back some of its share in the 35- to 49-year-old set and is tied with Microsoft for the older demographic.
Whether or not Microsoft's campaign reaps any rewards for its investment as part of a larger $300 million project to rejuvenate the Windows name is considerably less certain; BrandIndex tracks perception and not actual purchases. Apple is still expected to ship fewer Macs in spring than it did last year but in line with expectations reflecting the economic reality rather than the effect of an attack by Microsoft.
Comments
Anyone that actually watches the adds from MS and knows anything about Windows vs. OS-X sees how factually incorrect most of what is in the ad is.
If you like windows-cool-buy Windows. But while Apple's ads may stretch the truth, MS ads are clearly false in many cases (comparing unequal machines with different RAM/screen resoultion, showing a MacBook pro for $2,000 and then buying a MacBook class machine for only about $100 less than the MacBook, etc).
For years Apple has poked at Microsoft. For years Microsoft stayed quiet.
It was only a matter of time before they upset the GIANT...
Now Microsoft is fighting back... I am surprised it took them this long...
Apple will have to come out with new Ads as the current ones will not work with Windows 7.
No one is to blame but Apple...
For years Apple has poked at Microsoft. For years Microsoft stayed quiet.
It was only a matter of time before they upset the GIANT...
Now Microsoft is fighting back... I am surprised it took them this long...
Apple will have to come out with new Ads as the current ones will not work with Windows 7.
thats one of the most optomistic statements I've ever heard.
they spent, what? like 10 years on Vista, but don't worry windows 7 will be done in three and unquestionably better?
what, are they trying now, but didn't really care before?
Apple will have to come out with new Ads as the current ones will not work with Windows 7.
I think, as usual, you are missing the point italiankid. Ads do not have to have a basis in fact to be effective. That is the whole premise of the MS campaign.
If what Apple is doing is effective (and i think they probably are due for a change in direction) they can keep on slamming MS products as buggy, security problems, etc. as long as people still perceive them that way no matter how "wonderful" windows 7 will be.
No one is to blame but Apple...
For years Apple has poked at Microsoft. For years Microsoft stayed quiet.
It was only a matter of time before they upset the GIANT...
Now Microsoft is fighting back... I am surprised it took them this long...
Apple will have to come out with new Ads as the current ones will not work with Windows 7.
italiankid... nice to see you on here again. Maybe it was me that just missed recent posts from you. I thought maybe Microshit had fired you from posting here.
As for the ads... since the first Seinfeld ad I've only heard (in person) one person ever say they liked any of Microsofts ads. In fact even a friend of mine who works for Microsoft in Minneapolis said it's a joke around the office how bad they are. Any small fluctuation in number year over year are merely that, fluctuations and nothing more. Any one with half a brain knows how much bs is in those M$ ads. Plus, they're just badly done. Still amazes me to this day how all the money in the world can't buy them any sense of style or originality.
thats one of the most optomistic statements I've ever heard.
they spent, what? like 10 years on Vista, but don't worry windows 7 will be done in three and unquestionably better?
what, are they trying now, but didn't really care before?
Probably...
Just like Apple is trying very hard to get over the 10% marketshare in computers... Its taken how long? L>O>N>G!
You can't bring down the GIANT.
Now Microsoft will try with Windows 7. They listened to the customers and now the efforts are paying off.
Mac will have to be that much better iMO to remain at or above 8%
It could also be the the economy sucks right now and more people are looking for something dirt cheap and don't mind getting lesser quality if the price is right. MS hasn't said that Apple makes bad or poorly made computers, just that they are more expensive, in some cases.
The economy sucked in February when the perceived value was up to 70%. Something is really offer with this study because it fluctuates too much to be accurate. I could see a steady change one way of the other, but this is wild and extreme different. Something is fishy.
They both tell me what people who don't think are thinking.....
Then they go out and buy a $450 Vista PC and the performance is just a hair better.
Then they rub ashes all over themselves and pray towards Redmond for Windows 7,
which people are saying is as slow as Vista.
Buy the time they pay for Windows 7 and install their XP apps, finding out several won't work in emulation. They are ready to either blow their dumb brains out or give a Mac a try.
By then they are broke. So screw em. :P
Apple will have to come out with new Ads as the current ones will not work with Windows 7.
Funny, I've got Win7 RC on my home PC. It's a rather nice improvement over Vista and XP. I'm hoping that my PC-centric employer moves to Win7 rapidly.
However, my MacBook is much more pleasant to use, and remains my primary machine. I haven't even finished installing basic apps on the PC, and I don't really care.
Windows 7 has a major flaw - It's still "Windows", with virtually all of the annoyances and maintenance headaches.
The Dell XPS in the Microsoft ads has a serious 'screen open blocks heat vent' issue that severely overheats the machine so much that it burns your legs.
It also has a drastically shortened battery life (because of the heat issue perhaps)
What sort of savings is that if the dam thing is going to fail sooner than expected? It actually costs more in premature replacement.
italiankid... nice to see you on here again. Maybe it was me that just missed recent posts from you. I thought maybe Microshit had fired you from posting here.
As for the ads... since the first Seinfeld ad I've only heard (in person) one person ever say they liked any of Microsofts ads. In fact even a friend of mine who works for Microsoft in Minneapolis said it's a joke around the office how bad they are. Any small fluctuation in number year over year are merely that, fluctuations and nothing more. Any one with half a brain knows how much bs is in those M$ ads. Plus, they're just badly done. Still amazes me to this day how all the money in the world can't buy them any sense of style or originality.
I am back... I was on Vacation...
And I don't work for Microsoft!
I just voice my opinion.
I wonder who funded this study? Microsoft, Apple, a 3rd party? I am sure it was not done out of the goodness of Ted M's heart.
If MS funded it then of course that explains the results and the conclusions.
Oh! Apple computers are expensive and they have an additional little issue with them. They WORK as advertised.
JD
Probably...
Just like Apple is trying very hard to get over the 10% marketshare in computers... Its taken how long? L>O>N>G!
Sure, every company would love to see its market share grow but to equate market share percentage with business success is wrong. How else is Rolls Royce still around? It puts out a superb product and is not going to go with a laminated wood grain console to shave a few pennies so that it can increase its market share when it knows its customers want the real wood and pay more for the quality product.
You can't bring down the GIANT.
David did a number on Goliath! Didn't he?
Now Microsoft will try with Windows 7. They listened to the customers and now the efforts are paying off.
'Now MS will "try" with Windows 7'??? Doesn't sound like you have a whole lot of confidence in their new OS to place your bet. Perhaps it's time to fold your cards! If MS was listening to their customers, they would have dropped Vista sooner and stuck with "XP". Let's hope MS has got it right now for their customer base. It's taken how L>O>N>G and XP's support by MS will end in a round six years and that will be here before you know it. But what will those XP'ers do if Windows 7 blows and MS says this is it, take it or leave it until Windows 8, 9, 10, 11! Maybe then Mac market share goes up???
Mac will have to be that much better iMO to remain at or above 8%
Considering Microsoft efforts to bring a Mac like feel to their OS, I thought Macs were much better. If not, why would MS want to emulate after a loser!