One of the few positives out of yesterdays earnings call was the announcement that RIM will finally be aggressively advertising in America. This will be to the tune of $100 million dollars in the next quarter alone. There were rumors a couple months ago that RIM was shopping ad companies so they obviously have picked their company and marketing materials must be in the pipeline. While we don’t know yet what this campaign will look like, I would like to give you a reference point so you can vision the scale that a $100 million dollar budget will bring.
In 2006 the average ad budget for a major studio movie release was around $35 Million. No official figures have come out since 2006, but, many think the average has gone up to 40-50 million. Think about how many ads you see for major studio movies, most recently Hugo, The Muppets, Twilight, New Year’s Eve etc et. When major studios launch campaigns of this level, you can’t help but see the ads, they are EVERYWHERE ALL THE TIME.
With a budget of $100 million, we can expect to be overrun with Blackbery ads… a true Shock and Awe ad campaign. Its unclear at this point what % of the budget will go where. Mike and Jim indicated that the budget might also discounts promotions, presumably through carriers.
It will also be interesting to see how they market OS 7.
I have read many people poopooing this marketting effort and saying it will not make much difference. I see and understand that point of view, but, I have always been one that believes the consumer public, especially the American consumer public, is VERY easily swayed. If RIM can implement a super aggressive, effective marketting campaign, I think the results will be surprising.
Apple has been telling you for years the iPhone is the best at everything and that Apple invented everything good. There is nothing to say RIM can’t create their own “distortion field”