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itunes advertising

itunes advertising



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    Itunesaaapart5a Itunesaaapart5a Presentation Transcript

    • Part 5
      The past, present and history of iTunes, in relation to attention/network economies
    • Preface: Hand in Hand
      Careful Consideration of Terms
      iTunes and iPod go hand in hand
      Success from one relates to another - directly
      Marketing and advertising mention both (old/new)
      Part of the same ecosystem
      Henceforth mentioned together
    • In Brief: An Introduction
      iPod introduced in 2001
      Shook up existing market (CD Player hardware)
      Marketplace fragmented and simply ‘existed’
      Post Napster period of FREE MP3s
      Multiple producers, no design aesthetic
      Technology and services not fully realised
      Early attempts at marketing followed lead of other producers – such as SONY - Discman
      Needed to gain traction some how?
    • Idea: Steps to Success
      Needed to create and expand somehow?
      Current model (circa 2001) is to simply put out hardware and hope for sales
      Sales slow in 2001 – mid 2004
      Consumers must WANT the device (or its contents)
      Consumers must be TIED to device (a music service required)
      At the time, this was a gamble Apple needed to win – or face erasure from the known tech world
      Advertising was key, but they would need to embrace the changing technological marketplace ways...
    • Step One: Promote!
      Promote like you’re going out of business (literally)
      About to go under, but kept alive by competitor investments (Microsoft)
      Took a gamble and invested in the Portable Media Player (PMP) Industry
      Begun a small yet effective advertising campaign based around selling the player
      Initially Macintosh-compatible only
      Would go on to sell several million units based on strength of Apple name alone
      Get third party suppliers to promote & market their contents
    • Step Two: Build!
      Build a network of stars
      Needed to increase advertising effectiveness = consumer acceptance of product
      Embrace Network Economy – ‘give to get’
      Build networked relationship with stars = if player sells, then music from linked artist will be purchased also
      High profile endorsements from music industry
      Harness appeal of already established/known artists = relate the attention back to player = sales
      Make the product ‘cool’ in the eyes of the consumer
    • Step Three: Reinvent!
      Reinvent the Invented
      The introduction of iTunes Music Store & Software service
      Transform into an online music & other content reseller
      Further extend the notion of the Network Economy
      Partnerships with major record labels
      Sony BMG, Warner Music, EMI, etc
      House songs/artist catalogues
      Drive users away from free services
      Napster et al began to collapse
    • Step Four: Pulse!
      Keep your finger on the pulse
      Continue to drive the success of your hardware/software platform
      Consumer mindshare had been won through previous steps
      Take note of other ‘second movers’; SanDisk, Microsoft, etc
      Incorporate the technological advancements of your competitor into your own product to stay ahead
      Content is king, more songs & video content drives iPod sales and download revenues.
    • Conclusion: Success?
      What it all boils down to
      Product and distribution innovation – changed from analogue to digital format
      Grabbing the consumers attention with desirable content
      Celebrity/artist endorsement and marketing
      Music industry acceptance, then dependence
      Not serving the demographic, but owning it
    • Appendix A: AdResources
      Original iTunes/iPod advertisement
      • http://www.techpinas.com/2009/02/first-ipod-television-commercial.html
      Later iTunes/iPod advertisement
      Microsoft Zune + Marketplace advertisement
    • Appendix B: References
      Kahney, L .(2008).How Apple Got Everything Right By Doing Everything Wrong.Wired Magazine. Retrieved from http://www.wired.com/techbiz/it/magazine/16-04/bz_apple
      Kawamoto, D., Heskett, B., Ricciutti, M. (1997). Microsoft to invest $150 million in Apple. CNET News. Retrieved from
      Apple Reports First Quarter Profit of $38 Million. Apple.com. (2002). Retrieved from
      Apple Reports First Quarter Profit Results. Apple.com. (2010). Retrieved from
      First iPod Television Commercial. Techpinas. (2009). Retrieved from
      iPod iTunes Vertigo U2. YouTube. (2006). Retrieved from
      Music Industry VS Napster. Public Resource. (2000). Retrieved from
      Digital developments could be tipping point for MP3. Reuters. (2007). Retrieved
      from http://www.reuters.com/article/idUSN0132743320071203