Microsoft and Blackberry: Although a growing number of companies are turning their attention to online advertising, it appears that Microsoft Corporation (NASDAQ:MSFT) and Research In Motion Ltd (NASDAQ:BBRY) are relying on an “old school” way of doing things.
According to Mashable, “overall ad spending on magazines may have been down 5% in the first quarter of this year, but one sector dramatically (and surprisingly) upped its investment in the medium: the technology industry.”
This is definitely a big surprise, being that most people link lovers of technology and the Internet. While this may be true, Microsoft Corporation (NASDAQ:MSFT) and Research In Motion Ltd (NASDAQ:BBRY) obviously see some potential here.
According to data released this week by the Publishers Information Bureau, as a whole, technology companies increased spending on magazine advertising by 21.6% from Q1 2012.
Here is an excerpt from the piece, explaining the trend is greater depth:
“According to Jon Swallen, chief research officer of Kantar Media (which supplied the original data to PIB), the increase in spending — at least in the hardware/software division — is something of an anomaly, one that can be linked to a single advertiser: Microsoft.”
Microsoft Corporation (NASDAQ:MSFT) has spent a considerable amount of money on magazine advertising, looking for a way to push its software products. In an interview with Mashable, Swallen added that “The company also launched some campaigns for Office 365 … But the increase, it’s all Microsoft.”
Although Microsoft has increased spending in this area, the company is not alone. Research In Motion Ltd (NASDAQ:BBRY) has done the same, with hopes of spreading the word about its new operating system and devices.
David Cooperstein, a Forrester Research analyst, talked about Research In Motion using this strategy to drive attention for its new Z10 phone.
For those who don’t think print advertising still works, here is more from Mashable:
“[Advertisers] have recognized that print still works,” Cooperstein said, adding that print is particularly effective for “creating an emotion” around a brand or complex piece of consumer technology. Cooperstein noted that these advertisers are going beyond Wired and other technology-focused magazines, buying pages in consumer-oriented titles they haven’t been in before.”
Do you think Microsoft Corporation (NASDAQ:MSFT) and Research In Motion Ltd (NASDAQ:BBRY) are spending their advertising dollars wisely? With the recent hubbub surrounding BlackBerry and Microsoft, it’s important to tackle these questions.
More importantly, how do you feel about technology companies advertising in print publications?
Check back here for more updates on Microsoft and Blackberry.
DISCLOSURE: I have no positions in any stock mentioned.
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