Apple's 2008 ad budget: $486M

Apple's 2008 ad budget: $486M

Summary: You've undoubtedly seen your fair share of Apple television commercials this year, most of them for the iPhone. Well, if you're wondering what it all costs, we now know the answer.

SHARE:
TOPICS: Hardware, Apple, Mobility
12

How would you spend Apple’s 15 Billion cash reserve?You've undoubtedly seen your fair share of Apple television commercials this year, most of them for the iPhone. Well, if you're wondering what it all costs, we now know the answer.

BNet's Lindsay Blakely got the scoop by reading the fine print in Apple’s 5 November 10-K filing. According to the federal filing Apple's advertising budget for 2008 was $486 million or about 13 percent of its $3.8 billion SG&A (selling, general, and administrative expenses) budget. That's a little more than Apple spent in 2007 ($467 million) and large increase over what it spent in 2006 ($338 million).

Tip of the hat to Ms. Blakely who uncovered that little detail buried in a footnote under “Significant Accounting Policies.”

Topics: Hardware, Apple, Mobility

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

12 comments
Log in or register to join the discussion
  • So, the Apple ad making fun of Microsoft spending on ads...

    So, the Apple ad making fun of Microsoft spending on ads doesn't apply to them...
    Roque Mocan
  • Sorry, I meant this as a reply to the first post.

    A meaningful comparison would be Apple's [b]total[/b]
    advertising with Microsoft's [b]total[/b] advertising.

    This nearly half a billion dollars was for advertising
    [b]all[/b] of Apple's products - computers, OS, professional
    software, iPhones, iPods - and that $350 million from
    Microsoft was solely for [b]one[/b] ad campaign.

    From Microsoft's most recent 10-k filing (year ending June
    30, 2007): "Advertising expense was $1.33 billion, $1.23
    billion, and $995 million in fiscal years 2007, 2006, and
    2005, respectively."

    Please note that the $1.33 billion doesn't include the $350
    million Sienfeld campaign.

    http://www.sec.gov/Archives/edgar/data/789019/0001
    19312507170817/d10k.htm#tx30635_10

    Just search this form for 'advertising cost.'

    Additionally, for the years 2002 - 2004, Microsoft spent
    another $3 billion for advertising.

    By the way, it doesn't take very much work to find this
    stuff out.
    msalzberg
    • Still...

      It is retarted to make fun of someone for spending alot of money on advertising. P&G spends $9 Billion a year, but their products are great. I wouldn't make fun of advertising. Isn't that what Apple has been doing for a while now knocking Vista the whole time and actually ignoring its product almost completely? Just seems dumb to throw cheap shots about the other guy and include yourself in the cheap shot. Hello.
      OhTheHumanity
      • I would never knock advertising.

        But Apple isn't 'ignoring its product.' The PC/Mac ads
        mention the Mac, which is the product they're advertising.
        Leopard is a [b]part[/b] of that product, so they don't single
        it out. I don't see those ads talking about keyboards, mice,
        network cards, etc, either.
        msalzberg
  • That's more money than Microsoft has spent on ads.

    The last I checked, Microsoft is a huge success with a whole lot less ads. I think they spend about three percent of their revenue on ads. If Macs and igear are so good then why do they have to spend so much money on ads? Or is the Mac gear no better than vitamin pitches promising increased sexual power? Both groups spend that much money on ads. Neither works to increase sales in a significant way because neither actually helps your sex life.
    progon
    • percent maybe...

      maybe Apple spent a higher percent, but less total money...
      doh123
      • Not according to their SEC filings.

        Apple spent about 13% of its G&A on advertising, Microsoft
        spent about 20% of its G&A on advertising.

        Now Apple's G&A expenses were 11% of net sales, while
        Microsoft's were 8%.

        If my math is correct, Microsoft's ad spending was a higher
        percentage of sales than Apple's.
        msalzberg
    • Wrong.

      Microsoft spent $1.2 [b]billion[/b] on advertising last year. I
      think that's more than $450 million, what do you think?
      msalzberg
  • Shills don't come cheap...

    ...ask Adrian.
    Feldwebel Wolfenstool
    • Is that why...

      Microsoft spent $1.2 Billion in advertising? Paying shills?
      msalzberg
  • So what?

    When you sell over $4 billion a year in sales, doesn't seem
    like much.
    mlindl
  • RE: Apple's 2008 ad budget: $486M

    Guess Google got it cheaper there ever since ?:-)

    Not only did they rather MAKE money with advertising, a 350
    Mio. $ ad campaign like the Seinfeld blunder or the Apple vs.
    Microsoft ad I'd say Larry Page and Sergey Brin could most
    easily just outdo by acting THEMSELVES ;-)
    catmedia