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Video Facebook reaches one billion monthly active users Austrian gravesites get digital twist FDA cracks down on websites selling bad drugs Follow Reuters Facebook Twitter RSS YouTube Read Romney's strong debate showing puts Europe on edge 11:08am EDT Obama gets tough on Romney, campaign considers changes | 4:26pm EDT U.S. coal stocks jump on Romney comments: analysts 11:15am EDT Morocco denies entry to Dutch "abortion ship" 10:39am EDT Turkey steps up Syria strikes, says will defend borders | 3:07pm EDT Discussed 235 France taxes rich and business to slash deficit 143 Romney’s strong debate showing puts Europe on edge 125 Chavez to Obama: I’d vote for you, and you for me Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption Plastinated animals German anatomist Gunther von Hagens has preserved animals using the same plastination technique as his "Body Worlds" figures. Slideshow Zuckerberg's t-shirt Facebook founder Mark Zuckerberg says he owns "maybe about 20" of the same gray t-shirt. Slideshow In mobile-computing boom, a battle rages for marketing Tweet Share this Email Print Related News Mobile computing wars pose tough choices for Internet publishers Tue, Oct 2 2012 Samsung allowed to sell Galaxy Tab in U.S. as court lifts ban Tue, Oct 2 2012 Facebook's new pitch to brand advertisers: forget about clicks Mon, Oct 1 2012 RIM delivers pleasant surprise to investors; shares surge Thu, Sep 27 2012 Barnes & Noble launches new tablets in e-books fight Wed, Sep 26 2012 Analysis & Opinion IA brief: State laws may require firms to re-think social media policies What Apple (and maybe you, too) can learn from the NFL fumble Related Topics Tech » Media » iPad » Amazon CEO Jeff Bezos demonstrates the Kindle Paperwhite during Amazon's Kindle Fire event in Santa Monica, California September 6, 2012. Credit: Reuters/Gus Ruelas By Jennifer Saba and Poornima Gupta NEW YORK/SAN FRANCISCO | Thu Oct 4, 2012 12:10pm EDT NEW YORK/SAN FRANCISCO (Reuters) - Amazon.com Inc CEO and founder Jeff Bezos, who quipped at a shareholder meeting a few years ago that "advertising is the price you pay for having an unremarkable product," is eating those words. Three years on, as the company moves aggressively into the mobile computing business with its Kindle tablets and ereaders, Amazon has already spent $34 million on TV advertising for the Kindle in the first half of the year, according to Kantar Media, and there's more to come. Indeed, in the consumer technology business, where billions of dollars are poured into marketing, great products go only halfway towards winning market share. Take Apple Inc, for example. Perceived as a company that has triumphed with exceptional technology, it has long been the pace-setter on marketing, too, spending some $1.5 billion on iPhone and iPad advertising since their introduction. Now Samsung Electronics Co Ltd, Amazon, Microsoft Corp and other tablet and smartphone makers are stepping up with big spending on TV spots, print ads, guerilla marketing stunts and over-the-top launch events. As the holiday shopping season approaches, this fall's marketing contest promises to be intense - and creative. The marketing is "speeding up at a rapid rate," said David Droga, founder and creative chairman of advertising agency Droga5. "Everyone is trying to stand out." In New York City and Chicago, mysterious graffiti with the word "surface" appeared on building walls a few months ago - a tease for Microsoft's upcoming Surface tablets, which are designed to showcase its new Windows 8 operating system. (The company wouldn't confirm that it was behind the sketches.) TAKING ON APPLE And embattled Research in Motion Ltd is playing the prankster. Earlier this summer, the Blackberry maker sent a big black bus to an Apple store in Sydney, where customers were waiting in line, and deposited people with protest signs that said: "Wake up!" Apple is the envy of other tech companies for the appeal of its iPhones and iPads with consumers, a fact that has helped augment the greater smartphone and tablet market. Samsung has also poked fun at Apple's fiercely loyal fan base with TV ads suggesting that those queuing for the latest iPhone were dupes. The widely aired commercial lured more than 16 million views on YouTube and was the most discussed ad on Twitter during the week of its launch, according to social media monitor Bluefin. Apple's new "physics" ad for the iPhone 5, in contrast, has had only a million YouTube views. And Samsung's set for more of the same. The company has boosted spending on TV commercials for its Galaxy smartphone - the key rival to Apple's iPhone - to almost $80 million in the first half of this year, outpacing its ad expenditure in all of 2011, according to data from Kantar Media. "We are seeing most smartphones essentially becoming 4-inch pieces of glass and metal," said Mark Himmelsbach, head of digital strategy for BBDO North America, which creates campaigns for brands including AT&T Inc and Hewlett Packard Co. "It is important now to tell an interesting and compelling brand story" to differentiate one product from another, he said. AD SPENDING SOARS Advertising spending on smartphones and tablets has more than doubled to nearly $650 million annually over the past five years, according to Enid Maran, senior vice president of tech and telecom advertiser solutions at Nielsen. And that doesn't count the money spent on events, public relations campaigns and ads run by wireless carriers that often co-market specific devices. Google Inc, Microsoft, Amazon and Samsung declined to comment on how much money they direct towards advertising. Ironically, "old media" remain the vehicles of choice for touting new media devices. Sixty percent of advertising expenditure on smartphones went to television from 2011 to the second quarter of 2012, according to Michael Winter, managing director for digital strategy at media buying firm PhD Network. Almost 30 percent went to print and only 9 percent went to the Web. Amazon teased its latest Kindle Fire tablet in a TV ad during the kick-off of the National Football League season, a day before its actual launch. "We determined TV was an important part of the mix," Neil Lindsay, vice president of marketing of Amazon's Kindle business said at a conference in April. Those efforts may be paying off for the company. Robert Passikoff, founder and president of brand research firm Brand Keys, said Amazon is gaining some traction with its efforts to be known for content - and the devices that make it accessible - rather than just for online shopping. CHANGING PERCEPTION Changing brand perception, though, is more challenging. Google, for example, is a strong brand in Web search but not in mobile computing, Passikoff said. People do not associate Google with Android, the leading mobile operating software, and that could be a hurdle for its nascent hardware business. "We don't get mentions with Google about smartphones, or tablets or computers," he said, referring to Brand Keys' surveys. Google has promoted its new Nexus 7 tablet on television and in print. The search giant also used its famously sparse Google.com search page to advertise the $199 device. RIM, meanwhile, faces a tough marketing battle as it tries to reverse its fortune. The company's new marketing chief, Frank Boulben, said it will begin by slowly revealing features of its BB10 smartphone - slated to be released next year - to media and celebrities, and follow that with Web videos. "The real-time marketing will ramp up until the moment we launch and the device is actually available in the stores," Boulben said. "And then we will start marketing jointly with the carriers - TV campaign, outdoor (ads)." Meanwhile, Apple's TV campaigns are kicking in. As the company's marketing head, Phil Schiller, discussed in his testimony in a recent Apple/Samsung patent lawsuit, Apple initially relies on the media to create a buzz for its products, and rolls out ads as the initial excitement fades. In addition to TV and print, the company also spends heavily on product placement on TV shows and movies, Schiller said. According to court documents, Apple has spent close to $1 billion in advertising the iPhone since its debut five years ago and another $457 million for the two-year-old iPad. The media coverage for Apple's iPhone and iPad, on the other hand, has been priceless. (Editing by Jonathan Weber and Bernadette Baum) Tech Media iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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