Return on Intention

Microsoft has been pushing out some new ads targeting the laptop buying market, which is just about everyone now that laptops are just as powerful as desktops. The ads premise is to show real people shopping for laptops on a fixed budget, and inevitably compare every possible PC manufacturers models sold at the Big Box store to their mac “equivalents.” As you may have guessed, the shoppers pick a PC that is “perfect” for them as well as within their budget, unlike the Mac. Back to the parking lot post-purchase, the Microsoft guy behind the camera gives them back the money they just spent on the laptop. So the question is, is this ad a good strategy or not for Microsoft? First take a look at this particular commercial (my favorite, and the one this post is based on) and see what you think.

Wasn’t that touching? Sheila got just the right laptop for her to do her film making. Or so everyone thinks.

Disclaimer: I am a Mac guy. I’m not a Mac guy because I think they make me look cool and hip. I am a Mac guy because I need real computer, not a Windows box that fails on me constantly. It is safe to say I have a serious Mac bias. I truly believe that there is no universe where buying a PC is ever a better idea than getting a Mac. This fact will not stop me from criticing this ad (you might be surprised at what I have to say) but this is important to note for a few reasons:

1. You should know I strongly dislike PC’s before we start
2. You should realize that having an opinion is the best way to critique an ad campaign, because people in the real world have opinions, and that has a lot to do with my critique
3. I will try to be as objective as possible, but you should expect me to get on my Mac soap box before the article is over. It’s my blog and I’ll do what I want

Strategy

Microsoft is a software company, not a hardware company. Microsoft doesn’t care if you buy a Toshiba or an HP laptop. They only care that it is a Windows-based computer. That’s how they make money. This ad campaign would be too confusing if they had people comparing PC brands against each other. If you took two PC laptops from different brands that had the exact same specifications, the laptops will perform the same. They utilize the same hardware architecture. Macs however, do not. If you found a PC laptop and a Mac laptop that had the same specifications, the Mac would be faster. This is one of the reasons I like Macs, but for the purpose of this post, it is completely irrelevant. Why?

The Consumer

The average computer user doesn’t have the slightest idea how computers work. Almost all don’t even care. The vast majority doesn’t understand the differences in hardware architecture. To them, a computer is a computer. If the PC and the Mac laptop both have a 2.2 gig processor and 4 gigs of ram, then the consumer believes they are the same.

There are really only two games in town, PCs and Macs. I don’t think anyone goes into Best Buy to buy a laptop with Linux already installed, but if they do, your ad isn’t going to change their mind. These ads need to convince people not to buy the Mac. Because most of the computer buying population doesn’t really understand how computers work, you cannot advertise effectively with hard computing facts. It is also hard to convince people you have a better operating system. History shows that the Windows OS is full of security holes, and generally has a poor track record as operating systems go, except in sales. So what does Microsoft have left to advertise?

Microsoft’s advantage is that they are huge and hold the largest market share, but saying that makes people think of big faceless corporations. Not the image you want to send nowadays. Instead, Microsoft did something smart. They acknowledged what everyone else has been saying for years. Ask a Mac guy or a Linux guy why Microsoft has the largest share of the market when, in their opinion (and mine) PCs are such an inferior product. They will tell you either because they are cheaper to buy or because the market is ignorant. Bingo. There’s the ad strategy.

They may be on to something…

Most of the professionals in the world go to work everyday and sit behind a PC. They have probably never even seen a Mac desktop, and as we discussed above, they have no idea how computers work. All the average consumer knows is that most of the world uses PCs. That has to mean something, right?

Apples ads have been targeting the ways that Macs are better and blowing holes in the Windows perception, but Microsoft can’t battle that head one. They tried in a previous campaign and got a lot of flack for it. The “I’m a PC” campaign was seen by most as Microsoft responding to Apples ads like a 5 year kid with its arms crossed screaming “Nuh-uh!” The ads didn’t do much more than make Apple’s commercials more credible. This time around Microsoft ignored the Apples ads and embraced what everyone already knew. You can buy a PC for cheaper than you can buy a Mac. When you can’t tell computers, hardware and operating systems apart, what do you have left to base a purchase decision on? Price.

Microsoft has really gone down the right path here. I am a Mac guy, and I see these commercials and say “Yeah, PCs are cheaper for a reason.” These ads are never going to get the Mac folks to switch to PCs. Microsoft knows that. Microsoft isn’t even going to try to get people to switch. What Microsoft can and should be doing is giving the average consumer ammunition to justify their decision not to buy a Mac, and with these spots they’ve done it.

Congratulations Microsoft

Not only has Microsoft hit on a successful strategy, the execution was pretty spot on as well. The ads show people, people you can relate to buying a computer with their own money. Yes, the Microsoft guys gives them the money back, but these people have to buy a computer with their own money first, then pretend to be surprised when Microsoft gives them their money back. This setup is as close as you can get on TV to sharing the experience that Microsoft wants you to have. When the average consumer goes to the store to pick out a new computer, they can do exactly what the people on TV did. They can go look at the Macs, see there price, then go find a PC that seems equivalent for less. These spots have all the makings of an authentic and credible experience. My final judgment is that Microsoft hit a home run on these ads.

Now… The soap box.

Every company wants to get there customers to become rabid (loyal) fans. Microsoft is finally going down the right path to get there with ads like these. However, Mac got me first and I feel it my duty to point out a few things about these ads that are not being said.

I did some shopping

The laptop that Sheila got was a HP HDX 16t.  Lets find a “comparable” Mac.

The HP HDX  has a 16″ screen, 2.53GHz processor and 4 gigs of ram (you must have 64 Bit windows for this). Lets compare that to the 15″ Mac Book Pro which sports a 15.4″ screen, 2.53GHz processor and 4 gigs of ram.

Price of the HP HDX – $1,219.99 ( as configured above with the current $250 instant rebate – normally $1,469 )
Price of the Macbook Pro – $1,699.99

I guess Sheila could of got the Mac for under $2,000 like she wanted to in the commercial, but either way, this is a $480 difference. This makes the PC much cheaper. That’s great for the Video Editing Sheila, now let’s go get some software.

If Sheila only needs some basic software for video editing, then she could get Adobe Premier Elements 7 for $139.99. Then for audio, she could go with Adobe SoundBooth CS4 $199. So far that’s only about $340. But the Mac comes with iMovie, iDVD and Garage Band at no extra cost. Maybe Sheila needs professional software.

On the PC she could get the Adobe Production Premium that has Premier Pro, After Effects and Soundbooth for $1,699. If she got the Mac she could get Final Cut Studio with Final Cut Pro, Motion and Soundtrack for $1,299.

Now, let’s assume that Sheila will need to create production schedules, track expenses in a spreadsheet and use email to coordinate her shooting schedule. Looks like she will need some productivity software.

In the PC world she could get Microsoft Office 2007 Student Edition for $149.99. On a Mac she could get iWork 09 for $79.99.

Oops, almost forgot the anti-virus and anti-spyware stuff. The guy at Geek Squad recommended the Trend Micro stuff, but he said to get the expensive one. We’ll just grab AntiVirus + AntiSpyware 2009 for $39.99. I think we’re done, lets look at the totals.

Wow. It turns out the Mac would be cheaper after the software. Good thing HP has a $250 discount right now or this could have been expensive. I’ll get off my soap box now.