In the month leading up to the launch of Apple TV+, Apple spent $19.9 million on worldwide TV ads advertising its new streaming service.
While that’s definitely a big number, however, it’s only half (or just over) the $38.6 million Apple spent on iPhone ads during the same month.
The figures were shared by the New York Times. The report notes that the “same disparity” was evident in September. That month, Apple spent $14.9 million on Apple TV+ ads. Meanwhile, it spent $28.6 million advertising the iPhone.
The disparity is also seen in Apple’s spending on online ads. In October, Apple spent around $2.3 million on unique digital ads for iPhone. It spent under $1.7 million on Apple TV+ ads. Interestingly, in September Apple spent $3.8 million advertising Apple TV+ online. Online iPhone ads that month cost it $2.4 million.
The idea that Apple would spend more on marketing the iPhone, which makes up around half its overall revenue, versus Apple TV+ isn’t much of a shocker. Estimates of Apple TV+ revenue place it at around $9 billion a year by 2025. By contrast, last year the iPhone brought in some $218 billion on its own. By that measure, Apple’s overspending on Apple TV+ on a dollar-by-dollar comparison.
Apple TV+: How aggressive is Apple’s advertising?
The other interesting point of the NYT piece is the (sort of) disagreement among analysts about how aggressive Apple is being marketing Apple TV+. Dan Rayburn, an analyst with Frost & Sullivan, suggests Apple is doing a slow rollout.
“Consumers are just drowning in content right now, and all of these [rival streaming] services are competing for our time,” Rayburn said. “But they’re all approaching the market differently. This isn’t some race for Apple. It’s a slow roll.”
Meanwhile, Dan Ives, an analyst for Wedbush, says Apple has been more “aggressive” than usual. “This is a pivotal juncture for Apple to be successful — they cannot trip over their shoelace,” Ives said. “They were late to the game, they’ve underinvested in content and they have a lot of room to make up.”
Some of Apple’s promotional efforts so far have included big billboards for Apple TV+ shows in New York’s Times Square. Its stars have also been doing the talk show rounds.
As rumored, Apple is seemingly focused on awards. It recently took out a full page ad in Emmy, the official magazine for the Academy of Television Arts & Sciences. The magazine included a free 3-month trial for the 25,000 academy members. You know, those same folks who may be voting for Apple TV+ shows in future awards!
