Apple Doubles Ad Budget For Domestic, Global TV Blitz By Kathy Tyre

CUPERTINO, CALIF. - Apple Computer is readying a media blitz that will spike its ad spending from an estimated $60 million to as much as $120 mil

As many as 20 television ads are due to break over the next month and a half, these sources said, as Apple tries to build volume for its expanded range of low-priced personal computers and PowerBook and establish a market for its brand new Duo, a PowerBook within a pc.
‘This is what Apple has been wanting to do for the past 18 months,’ said James Daly, senior correspondent with Computerworld. ‘They have to change their strategy from one of high margins and relatively fewer sales to lower margins and lots of sales. They have to get that message out and they’re getting it out by saturating the market with these ads.’
Apple began to break the ads laweek through agency-of-record BBDO Los Angeles, which is also launching the campaign internationally. The agency referred calls to Apple, but production sources reported that at least 20 boards are in varying stages of being bid or shot. While the first ads had a heavier product-information emphasis than Apple has traditionally used, the full campaign will include a number of different strategies.
Two product-specific Duo spots, the first to appear, were produced by Smillie Films/L.A. Joe Pytka, meanwhile, shot a series of spots last week. Pytka may also shoot yet another campaign featuring celebrities who use PowerBook, sources said. Apple is also considering some experimental, MTV-like work and will continue the ‘Hard Way, Easy Way’ campaign that attacks Microsoft.
‘What we’re doing now is really looking at changing the way we do advertising into a much more sustained, continuing presence,’ said Ann Winkler, Apple manager of advertising, who declined to be specific about the ad plans or the budget.
Apple, No. 2 to IBM, has seen its share of the pc market drop from about 15% three years ago to about 9%. ‘What we’re seeing is a culmination of a strategy that lacked products until now, product at a price that is more competitive,’ said Daniel Farber, editor-in-chief of PC Week. ‘I would guess this is a point where Apple feels it is well-positioned to spend the money and get something for it.’
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