Does Apple (AAPL) spend too much money on ads

Apple has done a brilliant job of creating brand loyalty with their advertising, especially with college kids, who demand Macs but of course it's their parents who pay for them them so they have the luxury of not caring that they are paying a dear premium for the ability to keep up with their friends who have them.

Apple needs to spend even more on advertising lest the public finally wake up and discover that (gasp!) Apple simply isn't worth the extra money for most users.

Your logic is totally wrong. I am a professional marketer having worked for the largest ad agencies in the country.

When costs are being cut due to lower sales, the first reaction of many companies is to cut advertising expenses. It's easy to slash a media plan.

However, the long term effects of these cuts is drastic. Out of sight out of mind is the rule that applies here. With Microsoft down, this is the time Apple has to strike.

Once the economy recuperates (and it will), the consumer will remember the Apple ads and advertising is one way to ensure to the public that the company is strong. Especially during hard times.

Back in the 90's the companies that didn't advertise during hard times were the ones that had a harder time convincing people that they are not there for you. Companies need to show strength in times like this. It is companies like Apple (and Denny's with their free breakfast promo) that leave a positive impact on the consumer.

We need companies like Apple to give us something to hope for. That there will be a time that we will want to spend again. And we want to know who the companies are that we want to give money to.

Pointless and data-less articles like this is why the mindset of the consumer is at a low point. Right now we need to focus on the future and advertising today helps build that future.

Good night.

Definitely. The latest earnings were a travesty. Apple's entire ad campaign has been a complete disaster. They should shutter all of the stores too; they are a real loss-leader. Itunes=ISucks. What are these people thinking?

They should've announced a buyback during the last earnings call. That was the opportunity lost. Dumb move dudes.

What a piece of drivel! It is exactly this type of thinking that precipatates a recession. Hard to believe that anyone publishes this type of moronic tripe.

"Apple, based in Cupertino, Calif., said in its most recent earnings report that it actually increased marketing and advertising during the last three months of 2008."

SG&A expenses as a percentage of net sales are pretty much flat compared to the year-ago quarter.

With $28 billion dollars in the bank and zero debt, I'm sure Apple can afford to keep running advertisements. Keeping their products on people's minds might help pull customers when other companies can't. I don't envision Apple burning through cash like the auto manufacturers. I think Apple should continue to open stores and keep stores staffed even in this poor economy. Give the people roaming the malls someplace to go and keep Apple employees gainfully employed instead of being tossed like used condoms. I disagree with whomever said to just close down the retail stores. They obviously don't give a damn about people losing their jobs. I don't think these people are getting paid union wages like the auto industry workers.
Apple CAN afford to keep people employed at least for the time being. Shouldn't some company be willing to take responsibility for their employees instead of just saying "You're fired."

Armchair quarterbacking at its best.

Right on. Advertising is dumb. With Mac market share nearing 10%, iPhone nudging past 1%, how could advertising help when you already so dominate the market?

RIM talks about the important 'land grab' concept at this phase of the smartphone market, and that's why they are wasting money as well. Stupid people with misguided concepts. When the consumer has so little to spend it certainly isn't time to fight over what they do have.

The Vista opportunity may end next year when Windows 7 ship, so Apple should ramp down the Mac advertising in anticipation of this events. Apple should save the advertising for the Windows 7 release since it will likely be even worse than Vista.

I find that nobody, even existing iPod owners have any idea what the iPod Touch can do. Letting word of mouth popularize this device would be far more efficient use of that 28.1 billion. Perhaps a referral program to compensate current owners who talk to friends?

Wow, what a ridiculous article. Apple are just about the smartest marketers there are.

I applaud them for not cutting back and succumbing to the self-fulfilling prophesy that: business is going to be bad + better cut ads = business becomes bad.

As a long time marketer, I can tell you that fortunes are made in down economies. I have clients (I'm a direct marketing consultant) that are going strong with business-as-usual marketing budgets.

Cheers to Apple. Let them set the tone for the rest of the market to (as usual) follow.

Danger = opportunity!

Jim
http://gilbertdirectmarketing.wordpress.com/