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Old Jun 10, 2014, 10:56 AM   #1
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Apple's Advertising Revamp Include Plans for In-House Team of 1,000 Employees




Last week, it was reported that Apple has begun producing some of its television ads internally rather than relying on longtime partner TBWA, and now Ad Age has an extensive look at the company's evolving ad strategy that is seeing much more work being brought in-house.
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Amid criticisms that it has failed to innovate, Apple is increasingly taking marketing into its own hands. It's madly building an internal agency that it's telling recruits will eventually number 1,000 -- the size of Grey Advertising. It's pitting TBWA/MAL against this internal agency with "jump balls" to mine the best creative ideas, a controversial tactic with outside agencies, let alone an internal one. It's going after some of adland's boldest-faced names to staff its in-house shop -- in some cases, it's even poached executives from TBWA/MAL. And, in what once would have been seen as a sacrilegious breach of the Apple-MAL bond, it's been inviting some of the ad industry's top shops to pitch on major projects.
The report notes that Apple's hiring efforts have frequently received a "frosty reception", with some ad executives feeling that Apple has lost its creative energy while others worry about the cost of living in Cupertino.

"Powerful" iPhone 5s ad delivered by TBWA/Media Arts Lab
Still, it's clear that Apple has been working to shake up its advertising efforts over the past several years, with Apple executives having serious issues with some of TBWA's work. Apple had reportedly considered dropping TBWA, but the two longtime partners have continued to work together even as Apple has looked to other internal and external groups for new creative sparks.

The lengthy report is an interesting read highlighting Apple's sometimes controversial tactics with respect to TBWA, as well as an examination of what the future may hold for the relationship between Apple and its longtime ad agency. Amid continued growth by Apple and concerns over the quality of some recent ad campaigns, it's understandable that Apple has been looking at various strategies for raising its advertising game, but just how things will play out over the long-term remains to be seen.

Article Link: Apple's Advertising Revamp Include Plans for In-House Team of 1,000 Employees
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Old Jun 10, 2014, 10:59 AM   #2
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Wow, a thousand employees. Looks like they want to better control their marketing but a 1,000 people. It boggles the mind.
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Old Jun 10, 2014, 11:01 AM   #3
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Wow, a thousand employees. Looks like they want to better control their marketing but a 1,000 people. It boggles the mind.
That was my thought too. Goes to show the tremendous importance of marketing to Apple (if this rumor is true).
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Old Jun 10, 2014, 11:02 AM   #4
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-- removed by user --

Last edited by losthorse; Jul 15, 2014 at 10:25 PM.
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Old Jun 10, 2014, 11:04 AM   #5
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Bearing in mind how many markets / countries they're in, they could have a hundred or so on staff just to get the messages into different languages without embarrassing themselves…
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Old Jun 10, 2014, 11:06 AM   #6
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Welcome $150k ad exec ... you can afford the granny unit behind this $3M cottage, next to the highway on ramp. Good luck. Signed, San Francisco Bay Area resident.
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Old Jun 10, 2014, 11:07 AM   #7
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"Frosty reception"?

Hire me! I'll make you ads and live and work in Cupertino!

I'll do it all on iMovie!
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Old Jun 10, 2014, 11:09 AM   #8
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Originally Posted by ryansimmons323 View Post
"Frosty reception"?

Hire me! I'll make you ads and live and work in Cupertino!

I'll do it all on iMovie!
Same here. I'll be here tomorrow, iPad in hand or a live presentation.
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Old Jun 10, 2014, 11:10 AM   #9
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So, instead of innovating, we will just market some more...

I wonder how many engineers they could have hired for the same cost of 1000 marketing professionals.
You don't think Apple can afford both? I'm sure they've got more than enough skilled engineers in their ranks.
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Old Jun 10, 2014, 11:12 AM   #10
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Nice concept to the ad, but damn, that song.. I guess I'm not into The Pixies.
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Old Jun 10, 2014, 11:13 AM   #11
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So, instead of innovating, we will just market some more...
Marketing **is** innovation. I'm a techie myself but I don't underestimate how important marketing is. Most popular products aren't necessarily the best, they are the ones marketed best.
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Old Jun 10, 2014, 11:17 AM   #12
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I don't think the ad agencies "get" Apple anymore. Maybe they never really did. A lot of the ideas that seem to have come out of outside ad guys have been pretty awful lately. It seems the only Apple ads to work well are the ones you find out later Apple took over creative control to make.

Then you've got those emails that came out in court, between Apple execs and their agency. Shows the ad guys have no freaking clue.

So good, Apple will do it all in-house. They probably should've been doing that all along.

And for everyone worried about Apple hiring marketing guys instead of engineers, it's not like Apple is strapped for cash, and it's not like they weren't hiring outside marketing people anyway. They're just shifting it where they have more control, where they can fire people that don't work out, and in the long run it'll probably be cheaper. Would you rather pay an ad company looking to make a profit, and doesn't understand your business, or would you rather pay your own guys internally, who you can train in your culture, and keep the profit yourself?
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Old Jun 10, 2014, 11:19 AM   #13
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Originally Posted by losthorse View Post
So, instead of innovating, we will just market some more...

I wonder how many engineers they could have hired for the same cost of 1000 marketing professionals.
Entry level engineers are a lot more expensive than mid-level ad/PR/marketing people, but point taken. However, Apple has always been about marketing every bit as much as innovating, probably more so. The two compliment each other. Even the best product will not sell itself.

My gut feeling is this likely to end badly for Apple if Apple is bringing actually advertising in house. It immediately removes the "outside" view of the company by creating a bubble. Hopefully they will at least separate from any Apple campus.
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Old Jun 10, 2014, 11:19 AM   #14
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Steve was heavily involved in marketing and design as CEO, so I'm not suprised we see a qualitative decline in these two areas.
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Old Jun 10, 2014, 11:21 AM   #15
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Marketing **is** innovation. I'm a techie myself but I don't underestimate how important marketing is. Most popular products aren't necessarily the best, they are the ones marketed best.
Very true. Look what marketing did for Samsung. A great product with not so great marketing ends up being a great product sitting on a shelf. Ask HTC.
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Old Jun 10, 2014, 11:23 AM   #16
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Not a great article

That article has a noticeably dismissive tone toward Apple. They use the weak tactic of 'shotgun argumentation'. They make several incredibly bold claims about Apple's fading creativity and the frosty reception to recruitment, and substantiate the claims with quotes by mostly anonymous single sources.
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Old Jun 10, 2014, 11:32 AM   #17
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Costs of living in cupertino? Really? I had no idea. Is it more expensive than, say, sfrancisco or LA?
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Old Jun 10, 2014, 11:34 AM   #18
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Originally Posted by losthorse View Post
So, instead of innovating, we will just market some more...

I wonder how many engineers they could have hired for the same cost of 1000 marketing professionals.
Let's see*:

Apple = 65% innovation + 15% dividends/buy back stocks + 10% marketing + 5% lawyers + 5% other

Samedung = 35% innovation + 30% lawyers to defend stolen IP+ 30% marketing + 5% 'me first' stunts


*based on annalysts numbers
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Old Jun 10, 2014, 11:35 AM   #19
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Costs of living in cupertino? Really? I had no idea. Is it more expensive than, say, sfrancisco or LA?
LA ... probably. SF ... no. I lived in LA for 4 years, and my former roommates moved to Cupertino. Their housing costs definitely went up. TBWA/Chiat/Day is LA, NYC, and Nashville. I'm guessing their top guns are LA and NYC, and it's not like Cupertino would be insanely more expensive. Especially NYC.
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Old Jun 10, 2014, 11:37 AM   #20
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This is great news.

Maybe with 1000 new ad people, they can innovate a word to use instead of "awesome".

Personally, I'd rather see them hire 998 new ad people and 2 people to do a minor mac mini update with the Haswell CPU in the same form factor. But then I'm not Timmy.
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Old Jun 10, 2014, 11:40 AM   #21
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LA ... probably. SF ... no. I lived in LA for 4 years, and my former roommates moved to Cupertino. Their housing costs definitely went up. TBWA/Chiat/Day is LA, NYC, and Nashville. I'm guessing their top guns are LA and NYC, and it's not like Cupertino would be insanely more expensive. Especially NYC.
I understand. And I guess there's not much to do there, especially when compared with any of those big cities
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Old Jun 10, 2014, 11:44 AM   #22
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I understand. And I guess there's not much to do there, especially when compared with any of those big cities
That would be a bigger holdup for me as well. It's not devoid of things to do, but it's definitely not city center. But then, I hated LA despite many awesome things to do. To each his own. I'll stick with Vancouver and London and be happy.
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Old Jun 10, 2014, 11:47 AM   #23
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You don't think Apple can afford both? I'm sure they've got more than enough skilled engineers in their ranks.
Well there is a blockage somewhere in this pipe of awesome products.......

Seems they need engineers to hit the September launch of all their hardware, and Marketing personnel to market those devices for the next 12 months. So they might need more than 1000......

----------

Quote:
Originally Posted by i.mac View Post
Let's see*:

Apple = 65% innovation + 15% dividends/buy back stocks + 10% marketing + 5% lawyers + 5% other

Samedung = 35% innovation + 30% lawyers to defend stolen IP+ 30% marketing + 5% 'me first' stunts


*based on annalysts numbers
The advertising blitz by samsung has paid off for them.

Seems Apple might be ramping up its marketing to fight fire with fire.
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Old Jun 10, 2014, 11:48 AM   #24
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So, instead of innovating, we will just market some more...

I wonder how many engineers they could have hired for the same cost of 1000 marketing professionals.
Did you look at the keynote from WWDC? Or were you just disappointed your 6" screen isn't out yet. Plenty of innovation there.
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Old Jun 10, 2014, 11:48 AM   #25
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Marketing **is** innovation. I'm a techie myself but I don't underestimate how important marketing is. Most popular products aren't necessarily the best, they are the ones marketed best.
Look no further then Samsung and their deceptive marketing and how important it is to counter that.
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