Microsoft to begin US$220m campaign

By Bloomberg, Singapore.CNET.com
Monday, January 22, 2001 03:06 PM
WASHINGTON--Microsoft Corp said it will begin a television and print advertising campaign today that highlights its software for business server computers, an area the company is counting on to fuel future growth.

The campaign will cost US$220 million, making it Microsoft's largest ever in the US. The ads will emphasize the theme of "software for the agile business," meaning the programs can help companies adapt quickly to changing conditions, said Mike Delman, Microsoft's general manager, advertising and events.

The ads are intended to change the perceptions of corporate software buyers who see Microsoft as only a maker of software for personal computers, Delman said. As PC sales slow, Microsoft is relying more on sales of software for running computer networks and Web sites, such as Windows 2000 products, as well as programs like database and e-mail servers.

"I think from an awareness standpoint this is going to take hold very quickly," Delman said. "We haven't done a good job communicating through advertising to our customers."

About two-thirds of Microsoft's sales come from PC software. Sales of server software are growing faster, though--21 percent in the December quarter, compared to 4.3 percent for desktop PC programs. Rival makers of server and database software include Sun Microsystems Inc and Oracle Corp.

Decision Makers

Microsoft's TV ads will air during shows like "60 Minutes" and Sunday morning news shows, and will be targeted at "business decision makers" who often don't read trade publications, Delman said. The campaign will also include print ads in such publications.

The ads, designed by McCann-Erickson WorldGroup, use examples of two companies that have merged and an employee on a business trip to show that Microsoft software is reliable, mobile and can operate with other programs.

Microsoft executives, including chief executive Steve Ballmer, have said the Redmond, Washington-based company needs to do a better job of marketing its products and successes in business and server software.

Microsoft shares rose US$5.50, or 9.9 percent, to US$6.10 Friday after the company reported fiscal second-quarter earnings that met reduced expectations and reiterated its forecast for fiscal 2001.


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