Apple spent US$933 million on global marketing efforts last year, which was up 35 per cent over 2010. Akio Kon/ Bloomberg via Getty Images
Apple spent US$933 million on global marketing efforts last year, which was up 35 per cent over 2010. Akio Kon/ Bloomberg via Getty Images
Apple spent US$933 million on global marketing efforts last year, which was up 35 per cent over 2010. Akio Kon/ Bloomberg via Getty Images
Apple spent US$933 million on global marketing efforts last year, which was up 35 per cent over 2010. Akio Kon/ Bloomberg via Getty Images

Advertising just a slice of Apple's revenue pie


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It has been years since Apple featured the hugely successful rock band U2 in its advertisements, yet the most valuable company in the world has continued finding ways to pour millions of dollars into advertising campaigns to hype its latest iPhones, iPads and iPods.

Make that hundreds of millions of dollars.

Last year, Apple spent US$933 million (Dh3.42 billion) on global marketing efforts, which was up 35 per cent over 2010 and nearly double the $501m it spent in 2009. Even so, some analysts say last year's figure is not especially high - relative to Apple's overall sales, that is.

"Apple spent less than 1 per cent of sales last year on advertising," an analysis conducted by YCharts, a financial data provider, found this summer. "And its sales growth has been far outpacing its advertising budget."

Apple is by no means alone. It turns out some of the biggest consumer electronics makers around the world spend similarly small fractions of their total sales on advertising.

Microsoft spent $1.6bn to $1.9bn on advertising during its three most recent fiscal years, which is only 2.2 per cent to 2.7 per cent of its sales from software, video-game consoles and other products and services.

The computer maker Dell invested $860m in its last fiscal year, amounting to a mere 1.3 per cent of its overall sales, according to data from YCharts.

Samsung is expected to more than double its advertising budget in the United States this year to promote its SIII smartphone, compared with the $142m it spent to hype all of its Galaxy products last year.

"The smaller players can't even compete, simply thinking from the marketing level, with some of these giants," says Dominique Bonte, a vice president and the group director at ABI Research, which analyses tech trends.

Neither industry groups, such as the Consumer Electronics Association, nor individual tech analysts track the total amount spent across all device makers. But sector experts say they have noticed a dramatic shift in the kinds of electronics dominating billboards, television slots and online advertising campaigns today compared with just a couple of years ago.

Manufacturers are allocating less money to tout "traditional" sub-sectors such as desktop computers and laptops, while fatter slices of the advertising budget pie are feeding the sales of smartphones, tablets and other hybrid devices, says Omar Kassim, the founder of JadoPado, an online retailer that mainly sells electronics.

"As product ranges and corresponding consumer tastes have shifted, marketing budgets are increasingly being allocated to products that are selling today," adds Mr Kassim.

Well-known companies in the GPS navigation sector, including Garmin and TomTom, seem to be pulling back from plugging portable navigation units in favour of apps that provide directions and can be downloaded to smartphones or tablet devices.

"Four or five years ago there was such a strong focus on personal navigation devices, with huge marketing budgets and a lot of spend with retailers to promote these products," says Mr Bonte. "We're seeing a very different environment. Clearly the smartphone is the big thing."

Growing sales of gadgets in the UAE, including a bumper week of sales during the Gitex Shoppper event this month in Dubai, have convinced many tech makers to increase the amount of money they spend here to launch and promote new devices.

Some companies have forged partnerships with online retailers to provide shoppers with new portals to their products. Hewlett-Packard, Dell, HTC, Microsoft and Apple are each advertised in "featured stores" on Souq.com, an e-commerce site in the Middle East.

Retailers in the UAE also acknowledge that much of their own marketing is done in conjunction with a manufacturer's financial support, which goes towards touting one brand over a competitor's.

"We're just getting started in terms of joint marketing efforts with our partners," says Mr Kassim. "However, we've seen keen willingness from partners to explore and execute such campaigns."

Part of this growing closeness between manufacturers and retailers may be driven by the perception that the Emirates could be "classified as an 'influencer' market, as what tends to do well in the UAE does well across the region", says Ashish Panjabi, the chief operating officer of Jacky's, an electronics retailer.

At the same time, manufacturers are becoming more savvy about exactly which products to market here in the Emirates and across the Middle East. This is thanks, in part, to local retailers who are quietly sharing slices of sales data behind the scenes.

ALshop.com, for one, has shared its order pages after making sales of Apple's iPhones, Research in Motion's BlackBerrys and some Samsung products. That way, manufacturers know what colours and model specifications are top performers and, ideally, that could help in marketing these devices in the UAE or lead to special pricing through device distributors.

"Authorised distributors have gotten data from us, which has been passed on to manufacturers," says Sheriff Rizwan, the chief executive and founder of ALshop.com.

"We do get data collection requests from our principal vendors, and they'll say, 'Do you have any partnerships with universities or schools because we'll work out special pricing if you have any orders in the pipeline?'" adds Mr Rizwan.

"All of these are coming from the big daddy."

Panipat

Director Ashutosh Gowariker

Produced Ashutosh Gowariker, Rohit Shelatkar, Reliance Entertainment

Cast Arjun Kapoor, Sanjay Dutt, Kriti Sanon, Mohnish Behl, Padmini Kolhapure, Zeenat Aman

Rating 3 /stars

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%3Cp%3EDungeons%20%26amp%3B%20Dragons%20began%20as%20an%20interactive%20game%20which%20would%20be%20set%20up%20on%20a%20table%20in%201974.%20One%20player%20takes%20on%20the%20role%20of%20dungeon%20master%2C%20who%20directs%20the%20game%2C%20while%20the%20other%20players%20each%20portray%20a%20character%2C%20determining%20its%20species%2C%20occupation%20and%20moral%20and%20ethical%20outlook.%20They%20can%20choose%20the%20character%E2%80%99s%20abilities%2C%20such%20as%20strength%2C%20constitution%2C%20dexterity%2C%20intelligence%2C%20wisdom%20and%20charisma.%20In%20layman%E2%80%99s%20terms%2C%20the%20winner%20is%20the%20one%20who%20amasses%20the%20highest%20score.%3C%2Fp%3E%0A
RESULT

Bayern Munich 3 Chelsea 2
Bayern: Rafinha (6'), Muller (12', 27')
Chelsea: Alonso (45' 3), Batshuayi (85')

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

Company profile

Name: Thndr

Started: October 2020

Founders: Ahmad Hammouda and Seif Amr

Based: Cairo, Egypt

Sector: FinTech

Initial investment: pre-seed of $800,000

Funding stage: series A; $20 million

Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC,  Rabacap and MSA Capital

Company Profile

Company name: Yeepeey

Started: Soft launch in November, 2020

Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani

Based: Dubai

Industry: E-grocery

Initial investment: $150,000

Future plan: Raise $1.5m and enter Saudi Arabia next year

While you're here
Family reunited

Nazanin Zaghari-Ratcliffe was born and raised in Tehran and studied English literature before working as a translator in the relief effort for the Japanese International Co-operation Agency in 2003.

She moved to the International Federation of Red Cross and Red Crescent Societies before moving to the World Health Organisation as a communications officer.

She came to the UK in 2007 after securing a scholarship at London Metropolitan University to study a master's in communication management and met her future husband through mutual friends a month later.

The couple were married in August 2009 in Winchester and their daughter was born in June 2014.

She was held in her native country a year later.

Tree of Hell

Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla

Director: Raed Zeno

Rating: 4/5

The Buckingham Murders

Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu

Director: Hansal Mehta

Rating: 4 / 5

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Terror attacks in Paris, November 13, 2015

- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France

Youth YouTuber Programme

The programme will be presented over two weeks and will cover the following topics:

- Learning, scripting, storytelling and basic shots

- Master on-camera presence and advanced script writing

- Beating the algorithm and reaching your core audience