Apple’s half a billion dollar ad spending doesn’t seem too much when you compare it to its revenue.
Ad spending only takes up 1.3% of its total revenue and it is paid off tremendously with huge gains in brand value and sales.
On the other end, Microsoft spent $1.4 billion, almost 3 times as much as Apple’s ad budget. Even though Microsoft has its brand value way higher then Apple’s, are the consumers convinced to buy its product?
We know how cheeky Apple ads are, always poking fun of its rival. But people enjoy watching them and are demanding for more – that’s how we ended up with a whole collection of Apple vs PC ads.
From the chart alone, we can’t decipher which advertising impact is bigger. With a much smaller ad spending, it wouldn’t be fair to say that Apple’s ad dollars are producing more returns than Microsoft’s. As ad expenses increases, marginal returns are likely to decrease. Moreover, there are other factors affecting revenue as well.
But looking at it less statistically, Apple ads seem to be much more viral and effective in creating brand loyalty and encouraging brand switching. Just by looking around me, more people are switching to Apple and are satisfied with their decision.
What do you think?
Chart via Business Insider
