$400 million Windows Phone 7 marketing budget suggests it’s ‘Make or Break’
Microsoft is reportedly set to spend at least $400 million on marketing Windows Phone 7 at launch. Which, though not a fortune to Microsoft, does suggest Redmond realizes that its new mobile operating system could be the last throw of the dice.
Windows Phone 7 is almost upon us, with a holiday launch that Microsoft needs to get right if it stands any chance of maintaining and building on its smartphone market share. With Apple’s iPhone, Google’s Android, and BlackBerry’s RiM to compete with, Microsoft needs to up its game, and Windows Phone 7 needs to be a star turn.
With that in mind, Microsoft knows it needs to throw the kitchen sink at getting Windows Phone 7 out there and into everybody’s subconscious.
Speaking to TechCrunch earlier this week, Jonathan Goldberg, a telecommunications analyst at Deutsche Bank, suggested Microsoft is set to spend at least $400 million on marketing Windows Phone 7 to consumers. Add in development costs and the figure spent in total rises to around $1 billion.
Microsoft is cash-rich, so $400 million isn’t going to upset its bank balance in the slightest. And according to PC World Microsoft has made a habit of spending vast sums of money promoting new products, with $500 million spent on promoting XP, Vista, and the original Xbox. More recently Bing had a $100 million marketing budget, while it was nearer $1 billion for Windows 7.
However, Microsoft cannot afford to spend $400 million on a crap product that isn’t going to sell. Because make no mistake about it, the biggest marketing blitz in the world cannot bring success to a poor product, generally speaking.
This means that Microsoft is keenly aware of the need for Windows Phone 7 to succeed, but is confident the product can make its presence felt in the marketplace. Let’s hope the company, and the reviewers who have so far praised the new mobile OS, are proved right. And let’s also hope the actual ad campaign is good as well as expensive. Keep Jerry Seinfeld away at all costs.
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