- 12-31-12, 03:03 PM #26
Did anybody watch the interview? It's the same interview posted here:
RIM CEO Thorsten Heins Interview on CNBC [Video]
In it, Heins never mentions how much RIM is going to spend on marketing. Even the article quotes what Heins says, but completely misinterprets it.
“We will be investing into the launch of BlackBerry 10. We will provide a very strong marketing and launch campaign together with our carrier partners, we look forward to building the product in the millions, which will require us to invest in inventory. So yes you will see the cash position going down in the Q4, Q1 period. However I do not expect that position to fall below a number of about 2 billion."
Look at the bold parts. They're extrapolating their current cash and having $2B remaining after launch, from that, the author expects RIM to spend about $1B on the launch, which apparently includes inventory. How much inventory? If a BB10 phone costs about $200 to make, you're talking $200 million for each million phones. Notice he said "millions." So how much is RIM going to spend on marketing? I don't know, but I don't think it's going to be $1 billion, and Heins certainly never says it.
- CrackBerry Genius
12-31-12, 03:24 PM #27
- 2,285 Posts
the difference between microsofts marketing and RIMs is RIM is marketing BB10 while MS is marketing windows phone 8, windows 8 and the surface tablet all at once, while RIM is not
- 12-31-12, 03:24 PM #28
So lets assume a very light 4th quarther for them... approx 200 million. Also assume approx 3 million phones ordered. Now, assume no income from new BB10 phones sold (just for argument sake and to keep speculation down to minimum). That would be approx 600 million in phone cost, and approx 500 miilion in advertising.... now remember, this does not take into account any sales of new phones and only the added cash from the 4th fiscal quarter, not the 1st as Thor states it could be around 2 billion come the 1st. Now, from what I can gather, a 500 million add campaign is one **** of a commitment. Couple that with the millions that will be spent by the individual carriers, and we've got ourselves a very healthy start to the new year and BB10.
- 12-31-12, 07:52 PM #31
A 30 second ad spot in the upcoming Super Bowl is supposed to cost $3.8 million and 111 million worldwide watching: Cost of 2013 Super Bowl Commercials | 2013 Super Bowl Commercials - Super Bowl 2013 Ads
I would be surprised if we didn't see any BB10 commercials, IMO.
- CrackBerry User
12-31-12, 10:25 PM #33
- 65 Posts
I believe RIM will invest about a billion in marketing due to an article I saw on recently after the earnings call with Heins stating that at least $600M would be reinvested to launch BB10. They need to have some creative commercials to attract the younger crowd because windows 8 is being advertised everywhere here and even on a friends Xbox I saw 3 integrated windows 8 apps and advertisements. The yellow and white Lumina 920s are out of stock also. With that said WP8 still has a long way to go to make a dent over all of the cheap androids and Ip4s that are basically given away with the crazy holiday pricing I've seen at the major carriers. RIM will need to show that the products can do more than multitask and clearly identify what demographic they want to market to at launch.
- 12-31-12, 10:46 PM #34
Rim does need to nail it and I really think they will. These are not stupid people. Get ready for the wow.
- 01-01-13, 09:53 AM #38
I think a 30 second spot would be very wise for RIM, HOWEVER - the ad has to be amazing... not just funny or cool - but it MUST show that the Z10 is a whole new Blackberry and not the same 'ole, same 'ole. That's EXTREMELY important as RIM needs to change the way people think of what a Blackberry device is and what it offers.
That will be hard to do in 30 seconds. Maybe they can do a 1 minute spot... or 2 different 30 second spots? Either way, the ball is in RIM's court.
1/ How ?
Originally Posted by Frank Boulben“We start with those advocates, and they start to spread the word and build the buzz [for Blackberry 10]. Then we need to amplify it. The second part of the strategy is to do that using all possible realtime marketing techniques.”
2/ $1billion total V.S $1billion marketing/promotion/advertising ?
Asked; will update (see initial post : edited).
Last edited by Superfly_FR; 01-02-13 at 04:53 AM.
- 01-01-13, 10:51 AM #40
Re: RIM Investing $1 Billion Dollars into the Launch of BlackBerry 10
I wrote the headline very carefully. They are not spending 1 billion in marketing they are spending it on the launch. Which includes buying inventory, educating sales personnel, renting venues, various ad campaigns which include TV ads, print media, web etc. All in all RIM is taking it very seriously. Dropping a third of their cash position to put BB10 in the spotlight. Microsoft may have more $$$ but they've sqandered it on bad ads even when the consuker goes intonthe store they've no idea how to use Windows 8. RIM does indeed need to be smart about how they spend that billon, and I believe they are not putting all of it into one basket. They've got a strategy. Good advertising campaigns don't need hundreds of millions. Groundswell grass root campaigns, the likes of which have us excited and discussing and sharing our BB10 knowledge are cheaper and more effective. Their billion dollar launch fund is to get us talking, telling and showing.
- CrackBerry Abuser
01-01-13, 11:36 AM #42
- 172 Posts
I think Win8 has proved that its not so much how much u spend but what u spend it on, i hope RIM delivers kick *** adverts that will take mindshare among the general population, ads that peop,e will enjoy watching while at the same time teach. And show them the cool aspects of the device ...with the emphasis on SHOW..... Not tell us wat it does but show
- 01-01-13, 12:06 PM #44
I for one am not a fan of football (blame it on the Browns) so advertising during the Super Bowl would be lost on me. They could save money by doing it on social media sites like YouTube and let the fans/public do some of the work for them. TV commercials, newspaper ads and social media sites would work for them without spending a great deal of money and taking away from making phones available to the customers. Not having phones available to the customers would allow the competition to take away customers who would have bought the phone but because they have to wait say Sayonara.
- 01-01-13, 12:30 PM #45
Re: RIM Investing $1 Billion Dollars into the Launch of BlackBerry 10
Premier League transfer Window is open. RIM should help Liverpool football club buy a good striker. That will be an expense of 30M but can be awesome opportunity to be popular amongst one of the biggest fan base
Sent from the awesome Sony xperia S
- 01-01-13, 01:17 PM #47
Superbowl ad $3.5 million , viewers 111 million, exposure Priceless.
BIGinsightTM asked consumers their opinions about Super Bowl commercials. 7.3% state that commercials influence him/her to search online for more information; 8.4% state that the commercials influence him/her to buy products from the advertisers. 16.9% become more aware of the advertiser’s brand. Only 4.4% state that the commercials bother them.
The data shows that Super Bowl commercials are worth the money; 8.4% of 111 million viewers is money well spent. The million dollar question remains “why don’t consumers watch commercials throughout the rest of the year?” Probably because they don’t believe it is worthy of their time. Viewers understand that this air time is “special”.
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