Apple 2.0

Mac news from outside the reality distortion field

Mac vs. PC: Inside the ad wars


Image: Apple Inc.

Image: Apple Inc.

Every Wednesday, Lee Clow, creative director of Apple's ad agency TBWA/Chiat/Day, flies from Los Angeles to Cupertino to meet with Steve Jobs, a weekly get-together that's been going on for years.

Meanwhile, in Redmond, Wash., Steve Ballmer barges into the office of Mich Mathews, head of Microsoft's central marketing group, giving her high fives and shouting again and again "I'm a PC!"

Those are two of the scenes Devin Leonard re-creates for the New York Sunday Times business section in "Hey, PC, Who Taught You to Fight Back?" a 3,000-word feature that may be the best thing written to date about the competition between Apple (AAPL) and Microsoft (MSFT) unfolding on our TV screens.

"It’s an ad war," writes Leonard, "one destined to go down in history with the cola wars of the 1980s and ’90s and the Hertz-Avis feud of the 1960s."

Among the highlights of Leonard's story:

  • Source: The New York Times

    Source: The New York Times

    According to TNS Media Intelligence, Apple spent $264 million on television ads in 2008, 71% more than Microsoft. In the first six months of 2009, however, Microsoft responded with $163 million worth of commercials, more than twice Apple’s spending.

  • The Get a Mac campaign had been ridiculing Microsoft for a year before Ballmer decided he needed to strike back, barging into Mathews' office to give her the green light. In Feb. 2008 Microsoft picked Crispin Porter & Bogusky, best known for its cheeky Burger King ads, to lead the campaign.
  • Bob Reilly, Crispin Porter's executive creative director, was initially apprehensive. He didn’t even own a PC; he worked on a MacBook Air. (He has since bought himself two PCs — a Sony Vaio and a Lenovo ThinkPad.)
  • Advertising is not part of Microsoft’s DNA. Bill Gates, “never really seemed to get marketing.” Case in point: "The Wow is Now" campaign for Vista. "It was a bad product," says Jeff Musser, a former McCann Erickson creative director who worked on the Vista campaign. "I didn’t really hear anybody saying, ‘Wow.’ ”
  • There were also cultural issues at Microsoft. On Madison Ave., they say that the more hands that touch an advertisement, the worse it becomes. Microsoft felt differently. “They thought the more people saw it and gave an opinion, the better it would be,” Mr. Musser said. “That’s how you develop software. It’s not how you develop great creative.”
  • At first, Crispin Porter was reluctant to attack Apple, but that changed last summer. "As the tone of their campaign became more and more negative, we were like, 'We gotta do something,'" Mr. Reilly said. 'That’s where the whole notion of ‘I’m a PC’ and putting a face on our users came about. We have a billion users. That’s who our cast is, whereas Apple is just two fictitious characters.”
  • The war is heating up again. After a three-month hiatus, Apple launched three new ads last week to accompany the arrival of Snow Leopard. The launch of Windows 7 in late October will be preceded by another Crispin Porter ad blitz.

You can read the full piece here.

See also:

Wow the fanboys on both sides come out in droves lol. Apple is overpriced for hardware and they know it. It is how they profit considering they sell the OS for cheap. Microsoft on the other hand only sells OS, not hardware and therefore charges an arm and a leg for the OS. OSX has a better GUI, but is not immune to viruses contrary to the Apple fanboy responses. The only reason it is not attacked often is because of its relatively miniscule market share. Why hack a few million MACs when you can hack billions of Windows PCs? If Apple ever gained a real market share, you can expect a huge increase of viruses on Apple computers. As far as price versus power, sorry but MACs are subpar. I priced a MAC 8 core processor for a little less than $5,000 yet built almost the same machine running Windows XP x64 for $1,500 less and with an actual workstation video card versus Apple's trash ATI Radeon HD4870. Why would anyone use a cheap gaming card for a workstation? Answer: Apple, because they overprice their subpar hardware in order to sell you the OS cheaply. I like my MAC Book and both of my Windows XP x64 PCs I built for 3D work. The MAC Book is just my portable to surf the net and other basic thing while on the go.

Posted By Elias: September 1, 2009 3:52 PM

"Just because you spent your life in a basement in the App Store doesn't give you any idea about market systems. For God's sake – I learned this stuff in high school."

Andrew, let us know your perception of things as you progress through school. Don't worry, the hard stuff is behind you–you're going to LOVE 10th grade!!!

Posted By stevo seattle wa: August 31, 2009 4:24 PM

I'm sorry… but are people actually claiming that "I am proud to be a ___ person"? Is your life really that empty that you take pride in a computer that you didn't build (unless you have a PC).

And for the people who keep saying that when you compare components and capability that Macs are cheaper has never heard of economics. Fewer competitors drive up profit which increases costs to the consumer – Mac. When I have a choice between 3 different video cards I will have a better chance to get a great deal as opposed to 1, MAYBE 2, choices. Expand that to power supplies, fans, processors, UPGRADABILITY… you do the math: 8% vs 17% gross profit margin.

Just because you spent your life in a basement in the App Store doesn't give you any idea about market systems. For God's sake – I learned this stuff in high school.

Posted By Andrew, Seattle, WA: August 31, 2009 12:47 PM

@ Tom:

I love this naive perception of yours that there's somehow nothing "totalitarian" about Microsoft. Hilarious.

Methinks someone doesn't know much about Microsoft and its history. But your Redmond talking points are entertaining at least…

Posted By Chris, Salt Lake City, UT: August 31, 2009 11:35 AM

Basically, most PC users do not really understand the capabilities of PC's. That amounts to comparing oranges to Apples.

The same machine capabilities, in a PC actually cost more, than in a Mac. I have to use PC at work, although I use Mac at home, and the machine I have at work, cost a lot more than the Mac I have at home, to do use the same applications.

I get very tired of the cost comparisons, which simply are not valid. You have to compare machine capabilities, which is not what people are really comparing.

Using both, I can attest to far fewer problems, although I experience more problems than I used to, because now Mac components, are more "off the shelf" PC type components. Previously Mac Hardware lasted far better, when it was actually made to Mac Specs.

Still, dollar for dollar, you get far more capability with a Mac, a better, more reliable OS, and you don't have to have an entire IT department, to keep your machine functioning.

This debate is a lot like the old Beta vs. VHS debate. VHS won out, not because it was better, but because it was cheaper, and most people, basically couldn't tell the difference, or they didn't care about the difference. Yet, Beta was used by all pro houses, including all network news, because it was better quality.

The point being, price often determines the popularity, more than features, capabilities, or reliabilities. The problem with that, of course, is that you really are comparing oranges with Apples, rather than making a fair and equitable comparison.

Of course…..some people just want the cheapest up-front price, and they don't consider the cost of keeping the machine functional and running, over its very short life span.

The most amusing aspect of computers, generally though, is that home users have cut way back on computers….because they become obsolete so rapidly, and the cost is so high, and software has gotten quite expensive. Many people only buy the cheapest thing they can use, now, to do email and internet, and they don't really sue their computers for much else,……unless they use PC, and then they use it for games, mostly.

As someone who wants to do real work on my home computer, when I can find the time, I am not interested in games.

Posted By Rick McDaniel / Lewisville, TX: August 31, 2009 10:14 AM

Sal – you got it. I think the Apple vs Microsoft choice is more about living in a closed, totalitarian society with a "benevolent" dictator who protects you from the outside world(North Korea / Apple), vs living in near-complete anarchy where you have to fend for yourself but can do pretty much whatever you want (Somalia / Microsoft).

This has always been the case, the difference now is that Apple's ability and willingness to enforce restrictions is becoming more obvious. Meanwhile, Microsoft has been gradually improving its ability to make systems more stable and virus-resistant.
The gap has closed, and Apple's prices on hardware do not reflect this.

Posted By Tom, Portland ME: August 31, 2009 10:06 AM

Could people stop saying Apple is better. Hardware is the same.. I have mentioned that before. I could build a MAC with the part listed for build. The only difference is Apple restrict the parts into a MAC.. The same parts readily available for PC vendors and used… So the restriction and price tags are obvious. Secondly, people need to realize the restriction of their part is going to be their own downfall. I remember when MAC PCs (pre-2nd coming of Job) days where they did everything to restrict the OS, apps, and parts. What did it lead it? Apple losing market share and almost going bye bye. I love the MAC OS (pre-OS X) because of their memory utilization and how much they get out of your hardware parts… But they had no developers (they restricted or had none) and look how it went. What makes Apple succeed right now is the "cool factor" that it brings.. But once that is gone, Apple isn't that much different then their heydays (I would admit that OS X is a great OS but I believe the previous versions of Apple OS were great too)… What it comes down to the value that Jobs brings and "advertisement" to reiterate that value. But if they play their hands wrong, they could end up like IBM with their Token Ring (compare to how much Ethernet has developed). Again, Openness brings other downside but acceptance from IT community brings better innovation(and hence why developers would leave if Apple was not raking in money)… So to say Apple is better is all based on really the OS and the "marketing value" of Job with their products. If they were so good, why doesn't their product expand to business side? Note, I am well aware of consumer compare to business model. If their goods are so much better, there would have been a critical mass saturation to it and it still has not (after 3 years and counting). So for basic functionality for consumers, it makes sense. But to say it is a better product, that is really comparing apple with oranges.. At the end, both has its strength and weakness. But please, stop with Apple is better comments. If you really want people to believe that, place it into those Apple forums to rant and rave about.. For this article, it shows what it ends up being the battle of the perception of the consumers.

Posted By David Amherst, NY: August 31, 2009 9:45 AM

I use both MAC and PC quite regularly and they both excel at different things. I can`t see how Apple can call Leopard the most advanced operating system out there when it can`t even work with different hardware. Can you even upgrade the video card in a mac? Viruses! Heck Mac OS X is not even close to as popular as Windows. Why would hackers even bother? Mac OS X definitely has a much better GUI then Windows, no question.

Both fan boys of Mac and PC should just leave so that an objective discussion can be made.

Posted By Derek Smith, Xenia, Ohio: August 31, 2009 9:00 AM

@Sal

Ignoring the fact that you used Wikipedia as your source; note in your crowdsource article reference how NTFS non-administrator accounts (a.k.a Vista and Windows 7 family products) have the same security as Unix-based operating systems … so, tell me again how it's not about market share?

Posted By Kevin Washington DC: August 31, 2009 8:36 AM

ok hon–can i call you jon?
your comment is kinda funny 'cuz it would seem
YOU have invested your self esteem in a machine. i use both–mac and pc. and i just used you.
that makes three.

Posted By tina, tiara, new mexico: August 31, 2009 5:13 AM

I guess there are a lot of mac trolls out here.
About viruses, no OS is immune to viruses. Any virus program writer would write a virus that will be used as a way to access / control the majority of computers out there – and that would be Windows.
If you have a mac then so be it. Stop dissing out Windows or any other OS based on incomplete knowledge.
If somebody tells you that Mac does not have viruses then politely point them to the myriad of resources out there detailing Mac OSX anti virus support tools.

Posted By Rick Khanna, Sunnyvale, US: August 31, 2009 2:50 AM

I have a Powerbook G4. I've had it for about four years. In PC terms – that's about 8 or 10 years. I have Windows loaded on it in an emulator (I know get a REAL PC). I've got a Windows PC in my office / lab if I need a "true" Dell / Windows experience. I've supported and taught users how to use PC's and Mac's and supported both for nearly twenty years. I use my Mac nearly 85% of the time. I only use my PC's when I have to. I will buy a Mac mini as soon as I can and sell the Dell's – they've been large pieces of junk. I took a friend shopping for her nephew. I saw the Netbooks – NOT impressed. Just not impressed. The keyboards are hard to type on – the screens are too damned small. I prefer desktop replacements. I looked at Vista and Windows 7. They're mucha do about nothing. Most of the hacks are cheap imitations of what my Mac offers NOW. Microsoft never rebuilt its OS from the ground up – they just keep plugging away – MS DOS is still a partial foundation for Microsoft Windows. I've seen their so-called business class dev environments – they're 'rich' all right – richly complicated. Needlessly complex. One day sane people will look back and say – why the HELL did Microsoft survive. Why? Robber baron tactics. It's that simple. Windows is about like VHS was in the heyday – Betamax was better – but VHS won the day. Better ideas and technology don't always win – the fit do not always survive or flourish. Apple has done well for itself – I'm not blind about Apple – but honestly I do believe that Apple gives you more bank for the buck. It's OS includes more out of the box. Microsoft has copied Apple a great deal; the reverse is seldom true. Ballmer reminds me of the Steve Jobs character in Pirates of Silicon Valley "Mac it more Mac like" – or in his case – "I'm a PC". 'Nuff said.

Posted By Kevin H Plano TX: August 31, 2009 1:55 AM

Mark from Texas is completely right! (see his comment)

There is not a fault free system. I have 4 PC and 1 MAC at home.

My PC never crashed, no viruses.
My MAC overheats and hangs (installed smFanControl and stopped problem).

The best system is the one you can afford.

Posted By Tommaso, Rancho Cordova, CA: August 31, 2009 12:15 AM

<>

That's because PC users aren't a bunch of cultists who invest their self esteem and identity in the machines they use.

Posted By Jonathan, Houston, TX: August 30, 2009 9:57 PM

Why even bother arguing about this anymore? Buy what you need and can afford. Apple will never be in the sub $500 market and PC will always have a larger market share due to lower price points and 99% of corporate america is running windows based systems. Yes you see SMB putting in Mac's but by and large the big companies stick with HP, Compaq, Dell due to volume discount, enterprise support etc.

Apple is consumer based and I wonder how many Mac people are really just iPod / iPhone people. Everytime I'm in an Apple store it's mostly kids and young adults so limited income there (unless good ole mom & dad pick up the tab) and recent surveys show a growing number of incoming students are moving to netbook due to cost and size.

And get over the virus thing, everything now is about Malware and SPAM. I have not have a crashed PC in a long time or a "virus" and have as frequent spinning beach balls on my Mac G5 (Final Cut/Logic). Stay off torrents / P2P and stop downloading "free" software and you will not have any problems.

Posted By Mark Texas, Dallas, Texas: August 30, 2009 9:47 PM

The obvious question that appears to be eluding everyone. Why hasn't one person even been indicted for the raping and pillaging of this Country's financial institutions , when over 1,000 people were prosecuted and sent to prison for the Savings and Loan scandal which was no where near as severe as the multiple white collar crimes commited more than 1 year ago that created this whole mess

Posted By tim turks Chicago- city of assholes Il: August 30, 2009 9:41 PM

"Have fun you guy, just watch where you throw the mud.

A happy Linux user in Eugene OR"

well if some mud happens land on your property and since you're a linux guy, given a a couple of months to write a program, you'll be able to clean up the mud all by yourself!!! Who needs Macs or PC's anyway?

Posted By stevo seattle wa: August 30, 2009 3:59 PM

I do IT. Have since the DOS Days….

Got a Mac in 2002 and will never go back. I use the computer for what I need to do and don't get bogged in keeping it working. That and Apple's EXCELLENT customer service keep me coming back and telling everyone to switch. And it's been working – many have and also say they won't look back.

Our MS rep came in and offered us the "I'm a PC" junk. I told him, "I respectfully decline as I'm a Mac guy.". The look on his face was priceless.

Posted By Matt, Harrisburg, PA: August 30, 2009 3:35 PM

Have fun you guy, just watch where you throw the mud.

A happy Linux user in Eugene OR
baomike

Posted By baomike eugene OR: August 30, 2009 3:22 PM

Funny how the Apple stores are filled with women but the only people that ever comment on these articles are men? I'm still trying to figure out what computers have to do with ones own sense of masculinity and brainpower? Funny to watch…

Posted By Ellen San Jose CA: August 30, 2009 2:34 PM

Well Sean you obviously didn't read tom's comment correctly. He is comparing Microsoft's marketing strategy if they were go down that route (ie the fiasco with Google and the apple app store). He is stating that Microsoft will tout that windows 7 is open source friendly and should be the preferred software to that of apples complete control snow leopard.

And his other comment is also correct that since it is open source it is more vulnerable to viruses. But hey windows controlling a majority of the market share and having billions of users will also cause that too.

People fail to realize its not mac os are impenetrable to virus its just that people would rather focus on the os that everyone uses and can benefit them more.

ex ped: Sal, the idea that Macs don't have viruses only because their market share is so small is a myth that has been debunked with many times in this space. The key factor is that unlike Microsoft's OS and application suites, Unix-based OS's only allow their users to run executables within their own protected memory space. For background, see here.

Posted By Sal, WI, NY: August 30, 2009 1:56 PM

Hmmmm, I've never seen an "I'm A PC" bumper sticker but those white Apples seem to be everywhere.

Posted By Terry@El Paso Texas: August 30, 2009 1:22 PM

I'm not sure what Tom is getting at. Windows 7 will have zero affect on the Apple App store. I use an iPod Touch but use PC's, so just how is Windows 7 going to affect the iPhone, iPod App Store Store Experience when I don't even have to use a computer to access the App Store. You are comparing to totally different environments, like comparing a submarine to a car. Windows 7 will go up against OS X not the iPod microscosm. And, as far as I know, you aren't limited to the App Store for Mac OS software.

Posted By Sean, Allen Tx: August 30, 2009 12:36 PM

The war between the Mac and PC is funny to watch. It does not matter how loud each side making the noise, it is important how they will prove it to the consumers. Apple has been doing that since Steve Job reappeared in the company. Apple continues to prove their cases again and again. Now, the new Snow Leopard and iPhone in China will leave the Microsoft Window 7 behind its trail. It does not matter how hard Steve Ballmer and his group try to shout. To me the word "PC", it seems sound like the "Past Computer" when the word appears on my mind.

Posted By Britney, San Jose, California: August 30, 2009 12:33 PM

Tom, time to come up from Mom's basement.

Posted By Tom Sr. Cleveland Ohio: August 30, 2009 11:59 AM

You can bet the next wave of ads from MS will take advantage of Apples app store issues by showing the openness and freedom of Windows 7.
(ironically, this openness is exactly why it's more vulnerable to viruses – but a lot of people would prefer an open society with a few criminals, to a totalitarian regime)

Posted By Tom, Portland ME: August 30, 2009 11:28 AM

Love it! There are PC people, and Mac people.. so who cares? I'm a MAC, and proud of it, but what would the world be with out PC people???? Can't we all just get…. a mac?

Posted By Las Cruces, NM: August 30, 2009 11:15 AM
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Philip Elmer-DeWitt

Philip Elmer-DeWitt
Steve Jobs, goes the old joke at Apple, is surrounded by a reality distortion field; get too close and you believe what he's saying. Apple has made believers out of millions of customers — and made a lot of investors rich — but Philip Elmer-DeWitt believes that an ounce of skepticism never hurts when writing about the company. He should know. He's been covering Apple – and watching Steve Jobs operate — since 1982.
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