Computers & Technology Snazzy Ads: Tech Firms See Benefits
Investors Business Daily, Monday, November 17, 1997 at 13:19
There used to be just a handful of recognizable names at Comdex.
Tech firms are out to change that.
Computer-product makers that were once content to remain in the
shadows are now targeting mainstream audiences. Sun Microsystems
Inc., Seagate Technology Inc., Advanced Micro Devices Inc. and others
have all rolled out high-budget advertising campaigns. And they'll
be competing for mind share at this week's gabfest in Las Vegas.
These companies have traditionally hawked their products in the
pages of trade publications. But a new wave of commercials is
appearing on prime time television. Increasingly, ads for computer
chips follow ads for potato chips.
The trend is interesting because few consumers ever come in direct
contact with these companies' products. So why are tech firms
shelling out big bucks for spots during "Seinfeld" or "ER"? For
some, it's part of a strategy called ingredient branding. They want
consumers to buy a computer because of what's inside. Other firms
just want to build a warm, fuzzy feeling around the company name.
"People were using our technology every day and didn't even know
it," said Bob Kennedy, AMD's manager of corporate advertising. The
Sunnyvale, Calif., firm makes microprocessors and other chips. "We
really wanted to get the message out about who AMD was."
Of course, the undisputed master of ingredient branding is Intel
Corp. The chipmaker's "Intel Inside" advertising campaign propelled
it to world renown.
Intel started running television spots in '91. Aside from
International Business Machines Corp. and Apple Computer Inc., few
computer companies ran national ads in those days.
"A lot of people probably said, 'What are they doing on TV?' "
said Ann Lewnes, Intel's director of advertising.
But the commercials clicked. Computer shoppers began asking about
the processors in PCs and looking for the Intel logo. "Intel Inside"
soon popped up in the advertisements of PC makers, as well. Between
80% and 90% of consumers and business buyers are now aware of the
Intel brand, Lewnes says.
Intel's latest ads, which promote the new Pentium II
microprocessor, feature dancing cleanroom workers in colorful
outfits. The so-called "Bunny People" have come to symbolize the
company.
Can Intel's strategy work for others? That remains to be seen.
AMD, one of Intel's chief rivals, is testing the waters.
It unveiled a new processor, the AMD-K6, in April, and launched a
splashy ad campaign. The TV commercials -designed by the Boston
advertising firm Hill, Holiday - tout the K6's speed. In one spot, a
secret agent uses his K6-equipped PC to beat out an evil mastermind
with an underpowered computer.
The real intent of the ads, says Kennedy, is to make people
comfortable buying a non-Intel PC. According to his surveys, the
spots have been effective. "We saw a dramatic drop in the number of
people who said they would never consider buying anything with an AMD
product in it," he said.
Kennedy sees AMD's strategy as quite different than Intel's. The
"Intel Inside" ads lay it on a bit thick, he says. They give the
impression that, "regardless of what PC you buy, if it's got Intel in
it, it's OK. That almost devalues the . . . the PC manufacturer.
That's something we don't want to do," he said.
Of course, it will be some time before AMD has to worry about
overshadowing anyone. It plans to spend $18 million to $20 million
on advertising this year. Intel will spend more than $100 million.
Seagate also hopes to pump up its image. The Scotts Valley,
Calif., company is the world's largest disk-drive maker, but it's
virtually unknown outside of technology circles. Consumers, it
seems, don't really care what kind of disk drive is in their PCs.
Seagate isn't looking to do ingredient branding, though. In fact,
its TV commercials don't feature technology at all. In the spots,
which began running a few weeks ago, people are overwhelmed by
information but can't get the answers to their most important
questions.
One ad features a pair of lost men trying to find a wedding in
Scotland. The locals jabber on about everything - except how to get
to the church.
What does this have to do with disk drives? Well, Seagate doesn't
want to be known as just a disk-drive maker, says Dave Clauson,
senior vice president at Foote, Cone & Belding in San Francisco, the
firm that developed the ads.
Seagate wants to be known as a company that helps people manage
their data, he explains. "We need to make the brand relevant to the
information-storage, management and access problems that customers
have. This goes well beyond the disk-drive business," Clauson said.
The ads also are intended to show a human side to Seagate. "Most
technology marketing is celebratory of the device," said Clauson.
"We wanted to make sure that the voice of Seagate was approachable
and engaging."
The usually esoteric Sun is building its brand name with ads that
show technology made simple. The Mountain View, Calif.-based firm,
which makes Internet hardware and software, began targeting
mainstream TV viewers with commercials earlier this year. Last
month, it rolled out a new $30 million print and TV campaign.
In one ad, which took up two full newspaper pages, the message,
"Stop the technology madness," was written in giant letters. The ads
promote network computers, which are stripped-down versions of PCs,
and Java, a Sun programming language. They were designed by Lowe &
Partners/SMS of San Francisco, a unit of the Lowe Group.
The ads are certainly eye-catching, but who knows if they'll be
relevant to everyday consumers and businesspeople. Behind-the-scenes
technology such as Java can be tough for nontechies to grasp.
Building a brand is harder than it looks, says Intel's Lewnes.
"It's time-intensive and very expensive." |
