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Why the iPhone Will Be a Big Success
Apple's Marketing Touch Creates Passion Beyond Reason

By Jonah Bloom; Published: June 18, 2007 in Ad Age, link directly http://www.adage.com
 
Office Workers

The reality won't match the hype; it was rushed to market and will be buggier than Florida in September; the battery will have the longevity of a mayfly; the touch-screen keyboard will be more irritating than a mosquito bite. It won't hold enough music; the big glass screen will crack; etc. The iPhone has a lot of expectations to meet, but it will probably succeed regardless of how well it meets them.

There are hundreds of pundits who expect the iPhone to flop, and they've come up with a plethora of perfectly plausible reasons why it will sink like Motorola's Pebl in the overcrowded sea of mobile devices.

It's tempting to add a couple more cautionary notes to the list. For example, Apple usually makes complicated stuff feel simple and approachable (1-button mouse, drag-and-drop files and folders, plug-and-play devices), but in this case it's making what used to be a fairly simple device quite complicated. Even TBWA's TV commercials, while beautifully executed and better than 99% of the dreck between shows, feel a touch educational -- as if Apple feels the need to explain itself with this one -- and lack the memorable, 1-message simplicity of "Think Different," "1,000 Songs in Your Pocket," or "Get a Mac."

Worse, the ads are deceptive because they suggest a speed of mobile web surfing that surely won't be available no matter how good the iPhone is. Based on my own experience with my BlackBerry and Razr, both of which rely on AT&T for service, you'd need to buy a 60-second spot just to show one link opening.

But for all of these criticisms and despite the fact that some will prove valid, the iPhone will be a runaway success — selling as many units as Apple can ship through 2008 and taking at least a 1% share of the market.

Why? Because it looks great, because it is made by Apple, because its high price point will prove an asset while it's being targeted at affluent influencers, because it'll be a badge of honor, because it epitomizes an increasingly mobile world, and because, in short, it will inspire irrational consumer lust.

Indeed, anyone who ever uttered the word "brand" in anger or in a new-business pitch should wish it success. Companies such as Apple, one of the few that can still create passion beyond logic for its products, remind us that marketing is more than computer science. Not that there's anything wrong with computer science. Indeed, it's making the ad game a lot less laughable in the C-suite. But isn't it nice to know the entire business of connecting with the consumer can't be successfully outsourced to the machines just yet?

The fact that Apple's rivals in the mobile space are such a bunch of inept followers will help too. There might be a sea of offerings, but most of them are mediocre for devices people spend their entire lives attached to. Amazingly, aside from the possible exception of the Pearl, with its cute little rollerball, there's been nothing to inspire phone pride since the Razr, which has been decidedly unsexy ever since everyone got one. Then there's the cellphone manufacturers' marketing, or mystifying lack of it. Too much of it still is left to the networks.

Al makes a really interesting case against convergence. As comedian Ricky Gervais recently put it in one of his stand-up routines, we don't need to be able to take a piss in the washing machine because we've already got toilets. Yet, every time I pack my iPod, phone, BlackBerry, and laptop into my travel bag, along with all their various chargers, I find myself wishing I had 1 mobile device. Call me irrational, but I'm willing to believe the iPhone might be the one.



CBS Upfront Closes at $2.5 Billion
ABC Finishes at $2.4 Billion, Fox at $1.9 Billion; NBC, CW Deals Continue

 
By Andrew Hampp; Published: June 20, 2007 in Ad Age, link directly http://wwww.adage.com
 
Woman Smiling

Three down, 2 to go. CBS closed its upfront business today with a package worth $2.5 billion, boasting the highest volume of inventory for a second consecutive year and a more than 5% increase from its 2006 total. With the broadcast upfront winding down, 1 major buyer said the overall market is on track to being flat compared to last year with the possibility of being 'up a tick, maybe down a tick.'

ABC was the second network to wrap upfront business this week after Fox closed yesterday with deals worth a total of $1.9 billion, a 5% increase from its total last year.

ABC finished with $2.4 billion, a more than 5% increase from its $2.2 million to $2.3 billion take in 2006. Buyers estimated the network's cost-per-thousand viewers in prime time was up roughly 7% to 9%. CPMs for other dayparts -- such as early morning, news, and late night -- are believed to have increased in the low double digits.

Despite ABC sales chief Mike Shaw's public statement that he was open to doing deals on a variety of different data streams, the network estimated 90% of its total business was done using a live-plus-three metric, the preferred data stream this year.

Last year, the broadcast networks collectively took in an estimated $9 billion during the upfront.

With buyers estimating NBC to finish at around $1.5 billion, the CW's final take remains up for discussion. The CW started the week looking for low-double-digit CPM increases, but will likely close out the week in the high single digits at best, according to several buyers.

Though the year-old network made a big splash with its upfront presentation and new programs such as "Gossip Girl" and "Reaper," its middling ratings and lack of additional dayparts will make it hard to merit the big bucks its competitors are raking in. The fledgling network closed last year with $750,000.

CPMs for CBS were up 8% to 9%, though ABC is expected to finish the week with the highest CPM increase.

With broadcast now expected to finish up as early as tomorrow, cable and syndication are up next.

Leading the pack is the Turner networks, which began the week with the record-shattering ratings performance of "The Closer" on TNT. The program attracted more than 8 million viewers on June 18. (By comparison, the CW's biggest show, "America's Next Top Model," gets about half those numbers on a good night.) Cable networks are currently asking for high-single-digit CPM increases.






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