Microsoft and the Art of Spending Money (Infographic)
It is no secret that Microsoft knows how to spend money on marketing. They spend a lot of money on marketing, more than some people might suggest they spend on developing a bug-free and user-friendly product. Since launching Windows 95, Microsoft has shown a commitment to creating marketing spectacles to announce their product launches that is second-to-none in the software industry. Most of the time, this marketing buzz has paid off with ever-increasing revenues, but will that continue to be the case in the future? The infographic below was provided by WhoIsHostingThis, and depicts the trend Microsoft has been following, and the success (or lack of success) that their marketing campaigns have generated. Click here for more information on the source of this infographic.
When Windows 95 was launched, Microsoft spent $200 million on its marketing campaign. The software giant lit up the Empire State Building in Windows colors, put out a front page banner on the Times of London, and threw a carnival (hosted by none other than Jay Leno) at the Microsoft campus. They also spent $3 million of their marketing campaign money to use “Start Me Up,” by the Rolling Stones, as the soundtrack for the advertising campaign.
For Windows XP, Microsoft spent an additional $200 million, this time bringing in such big names as New York Mayor Rudy Giuliani, Regis Philbin, Madonna, and Sting. Pundits have suggested that Microsoft might have been better in spending that money on security and product testing, since there have been several errors that caused several major security and uptime problems for large corporations.
As a further example of how Microsoft knows how to spend money, when the company was gearing up to launch Windows 8 they spent almost 2 billion dollars. The money was used to open a pop up store in the center of Times Square, where users could try out the new Surface tablets for the first time. They also opened a new store in Times Square specifically for the product launch, recreated the New York skyline, and hosted a five-hour event at New York’s Pier 57.