Last time, I wrote an entry about the changing face of the world of advertising.
Recap: Through the internet, we, for the first time have the opportunity to do thorough research into the products and companies we buy our goods from. This is leading to a much more critical consumer and a change in the marketing approach of those companies.
And I promised you more.
So, marketing is driven by the consumer nowadays, not by the product. How does this work?
We are at freedom to express our opinions in a worldwide forum for the first time, and for the first time, the voice of the consumer has the chance to be heard. This leads to dialogue between the consuming parties, which the selling entity, be it the shop you bought it in, or the company that produced the product, can follow.
A classic example of this is Apple Inc. (Formerly computers). Before the internet went truly global, with one billion users online and surfing, the companies reputation spread mostly though word- of- mouth, users' reports to their friends and relation and online forums and blogs,up until a couple of years ago considered very geeky. Thus. Apple acquired a slowly- growing user base, all of them highly satisfied with the product and the possibilities offered by the web for interaction with other users and the company. However, due to the limited scope of the web, very few people got to hear about the good reviews that the companies products garnered.
The release of the iPod in 2001 did a lot for Apple, of course, after those early adopters and tech geeks helped spread the word. Carefully targeted advertising and product placement helped rocket the iPod to fame. This was classic advertising, in the sense that the company advertised its product, and people shopping around for a new digital music player were made aware of this very simple way of interacting with their music and playing it easily. This did not really help it sell its core competence, the computer and software business
When Apple announced the switch to Intel processors, the established Apple users were at first horrified that apple was going to leave its track record of excellence, quirkiness and good design behind and go into mass production. If you read the forums and blogs, a heated discussion had erupted about where all this was going to lead to, wether Apple would become just another computer manufacturer, if the platform would become less secure and a myriad of other questions.
I began selling Apple computers around that time (bias warning!). For the first time, people who would never have considered a Mac as their computer showed an interest in this strange and alien computer. When they dropped the bomb, that you would be able to WINDOWS on Macs, the established community cried treason, at first. Personally, I found great satisfaction in seeing Windows reduced to what it had been under DOS: a program, running under an operating system.
Then, at Macworld 2006, Steve Jobs (Apples' CEO) dropped the bomb: the iPhone. This product, without Apple printing a single Ad, garnered what amounted to half a billion dollars in advertising. This was achieved through previews, reviews, rumors and, first and foremost discussion. Since that time, the interest in Apples products has literally skyrocketed. Selling Macs I found myself confronted with an onslaught of customers who did not fit in the established user scheme of graphic designers, lifestyle icons and technology enthusiasts. Apple managed to reach the common user through the hype around the iPhone.
And still, there are very few ads for Apple computers around. The only computer product currently advertised is the Macbook Air. Yet, every day, more and more people are queueing up to buy Apples latest kit. And most of them know what they want, and they have a good idea of why they want it.
This does not work through classic advertising. This is the result of people talking, discussing what they have bought and relating their experiences to others. In other words, the users for Apples computers, are their best advertisement. They always have been. But with them being able to email their friends and relations, text them, blog about it, post an unpacking ceremony (the first joy of owning an Apple is the box it comes in), then relate to their peers how easy it is to use and how nicely they have it all working now that they have gotten used to the different interface.
So, even if Apple does spend quite a bit of money (but not that much, compared to other companies), on advertising, most of their message is spread through trustworthy and familiar channels, who are much more likely to reach the target audience than a TV ad. The company and its products discussed openly and thoroughly, as are its policies.
Three examples:
1.) iPhone– one of the aspects of the iPhone that received
They have been marketing themselves in this fashion for quite a while now, and when they do advertise directly, it is generally intelligent, unemotional and above all honest advertising that generates more discussion. See the Mac vs. PC ads, for instance (title link).
And I promised you more.
So, marketing is driven by the consumer nowadays, not by the product. How does this work?
We are at freedom to express our opinions in a worldwide forum for the first time, and for the first time, the voice of the consumer has the chance to be heard. This leads to dialogue between the consuming parties, which the selling entity, be it the shop you bought it in, or the company that produced the product, can follow.
A classic example of this is Apple Inc. (Formerly computers). Before the internet went truly global, with one billion users online and surfing, the companies reputation spread mostly though word- of- mouth, users' reports to their friends and relation and online forums and blogs,up until a couple of years ago considered very geeky. Thus. Apple acquired a slowly- growing user base, all of them highly satisfied with the product and the possibilities offered by the web for interaction with other users and the company. However, due to the limited scope of the web, very few people got to hear about the good reviews that the companies products garnered.
The release of the iPod in 2001 did a lot for Apple, of course, after those early adopters and tech geeks helped spread the word. Carefully targeted advertising and product placement helped rocket the iPod to fame. This was classic advertising, in the sense that the company advertised its product, and people shopping around for a new digital music player were made aware of this very simple way of interacting with their music and playing it easily. This did not really help it sell its core competence, the computer and software business
When Apple announced the switch to Intel processors, the established Apple users were at first horrified that apple was going to leave its track record of excellence, quirkiness and good design behind and go into mass production. If you read the forums and blogs, a heated discussion had erupted about where all this was going to lead to, wether Apple would become just another computer manufacturer, if the platform would become less secure and a myriad of other questions.
I began selling Apple computers around that time (bias warning!). For the first time, people who would never have considered a Mac as their computer showed an interest in this strange and alien computer. When they dropped the bomb, that you would be able to WINDOWS on Macs, the established community cried treason, at first. Personally, I found great satisfaction in seeing Windows reduced to what it had been under DOS: a program, running under an operating system.
Then, at Macworld 2006, Steve Jobs (Apples' CEO) dropped the bomb: the iPhone. This product, without Apple printing a single Ad, garnered what amounted to half a billion dollars in advertising. This was achieved through previews, reviews, rumors and, first and foremost discussion. Since that time, the interest in Apples products has literally skyrocketed. Selling Macs I found myself confronted with an onslaught of customers who did not fit in the established user scheme of graphic designers, lifestyle icons and technology enthusiasts. Apple managed to reach the common user through the hype around the iPhone.
And still, there are very few ads for Apple computers around. The only computer product currently advertised is the Macbook Air. Yet, every day, more and more people are queueing up to buy Apples latest kit. And most of them know what they want, and they have a good idea of why they want it.
This does not work through classic advertising. This is the result of people talking, discussing what they have bought and relating their experiences to others. In other words, the users for Apples computers, are their best advertisement. They always have been. But with them being able to email their friends and relations, text them, blog about it, post an unpacking ceremony (the first joy of owning an Apple is the box it comes in), then relate to their peers how easy it is to use and how nicely they have it all working now that they have gotten used to the different interface.
So, even if Apple does spend quite a bit of money (but not that much, compared to other companies), on advertising, most of their message is spread through trustworthy and familiar channels, who are much more likely to reach the target audience than a TV ad. The company and its products discussed openly and thoroughly, as are its policies.
Three examples:
1.) iPhone– one of the aspects of the iPhone that received
thorough criticism was its lack of support for third-party applications.
Apple is currently in the process of launching a software development
kit for the iPhone, which will enable software companies to produce
just that: Applications that run on the phone that are not by Apple,
even if Apple will retain a certain degree of control over them.
2.) The environment– Greenpeace ranked Apple ten out of ten in it's
policy towards the environment. This ushered in the new iMac, which
stresses recyclabilty through. he use of aluminum and glass in stead of
plastics. Also, in the macbook air, several hazardous chemical
compounds were removed from the makeup of the computer.
3.) Transparent menu bars – users did not like the transparent
menu bar in Apples operating system. In the latest update, they have
been given the option to turn that off.
Of course, some concerns remain unaddressed. But this entry is not a rant about Apple in general, rather the focus is on the users dialogue with each other and in general, and how it affects the decisions of a company.
Apple is aware that its public perception is its most valuable asset and encourages this dialogue, as long as it does not reveal its product strategy, or its internal workings.
It is a question of time how long this can remain so…
They have been marketing themselves in this fashion for quite a while now, and when they do advertise directly, it is generally intelligent, unemotional and above all honest advertising that generates more discussion. See the Mac vs. PC ads, for instance (title link).
In fact, those ads have been run through the internet, disseminated by fans, marveled at by advertisers, spoofed, discussed, analyzed and have been generally very successful.
Like they say: It just works.
And it is a model that other companies might consider following. Apple has proven that it works throughout the last 25 years, and it is still working for them now that it has become fashionable.
To contrast this, here is how advertising worked in the past:
©Apple Inc.
Very emotional, laden with meaning, yet it does not say a single thing about the advertised product, except that it will smash all conventions. This ad, incidentally, was also voted the best ad of all times. More on it here, as the history is pretty interesting, and shows, that even then, Apples advertising focused mainly on generating discussion.
To be continued.
Comments