Top Story


Home >> International >> Article

International: Microsoft to move bulk of ad dollars to digital Channels<br>Tells 4A's that media mix will change by 2010

Font Size   16
International: Microsoft to move bulk of ad dollars to digital Channels<br>Tells 4A's that media mix will change by 2010

It may be dumping hundreds of millions of dollars into an old-school TV campaign for its latest operating system, but Microsoft expects it will move the majority of its ad budget into digital channels within three years.

"We're actually pretty confident that by 2010, the majority of our media mix will shift to digital," Mich Mathews, senior VP-central marketing group at Microsoft, said in an address at the American Association of Advertising Agencies Media Conference and Trade Show here.

Already big web spender

In 2006, Microsoft spent $447 million in measured media, according to TNS Media Intelligence. The media-spending tracker said 18% of that was spent on internet advertising -- far and away above the national average. Still, it laid out $69 million on network TV, $33 million on cable, $118 million on magazines, $67 million on business to business and $29 million on national newspapers.

Ms. Matthews said the shift is simply an effect of following consumers, who are spending more and more time on the web and becoming more important in deciding how marketing messages are distributed. She followed Procter & Gamble Co.'s Jim Stengel in citing the importance of consumer control to the marketing process, calling the epoch the "Era of Customer Participation."

As proof of how much consumers have inserted themselves in the marketing process, she cited the hundreds of mash-ups of a popular ad for the hot-selling "Gears of War" video game for Microsft's Xbox system.

More collaboration

Ms. Matthews said the key to navigating all the change is getting collaboration among various disciplines. "I want everyone in the room at the same time, including the PR guys," she said.

Her speech was notable for its many mentions of public relations, not something you'd expect at a media conference. In pointing out the importance of earned media, she mentioned Dove's much-ballyhooed "Campaign for Real Beauty," which has been expert at amplifying ad executions with PR by tying them into news events.

Source: Adage


Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Ushering the launch with a campaign titled ‘The New Way to Get Rich’ showcasing how technology gets millennials closer to their financial dreams

Ogilvy and Love Matters conceptualised a campaign that aimed to change the conversation and imagery that is associated with the LGBTQ community and lesbians in particular