Tech Firms Make Bet With Ad Blitz
Technology companies are launching big advertising campaigns as they wager on a pickup in business spending and jockey to have their products stand apart in an environment where new customers are hard to find and competition is intensifying. Marketing budgets in the tech industry have tended to grow slower than revenue, and are the first spending that gets cut in tough times, according to research company IDC. This year global revenue for tech companies is on track to fall 2.5%, but marketing budgets are being slashed 8.3%, said IDC. As the companies now ramp up their spending, IDC expects marketing budgets will climb 3.5% in 2010, while revenue will rise 3%. "Things have been quiet for a while so it makes sense for [big tech companies] to spend," said IDC analyst Richard Vancil.
Tech Firms Make Bet With Ad Blitz Phone Makers Scramble to Stand Out (WSJ)