How Steve Jobs’ Laughable Early Apple Ads Evolved Into Today’s Marketing Marvels

From my Forbes.com blog The New Persuaders:

To look at Apple’s classic advertisements, from the stark, bold “Think Different” campaign to the playful “Get a Mac” series to those minimalist silhouetted iPod ads, you’d never guess that early Apple ads were so–not to put too fine a point on it–awful.

On the one-year anniversary of Apple cofounder Steve Jobs’ untimely death, we scrounged up a baker’s dozen of early Apple ads in the accompanying photo gallery for your amusement and edification. They’re print ads in particular, since it was pretty early days to be advertising computers on television. Still, most them wouldn’t be recognizable as Apple ads if not for the name and early logos.

They weren’t especially worse than other computer ads at the time. Maybe they were even marginally better. But they were anything but special, let alone cool.

What’s interesting is not just that Apple’s early ads look so depressingly conventional. It’s that a few of them revealed flashes of Jobs’ future marvels of marketing. Once Jobs got past the initial “speeds and feeds” marketing imperative during a time when Apple was really just one, albeit prominent, competitor in a sea of pre-Windows, pre-Mac personal computer makers, he began to develop an eye for brand marketing that few companies in technology or any other industry have since surpassed.

Take a close look at these early ads, and you can see that Apple’s evolution to the pinnacle of brand marketing happened not in a straight line, but in a sort of punctuated equilibrium that parallels the gradual maturing of computing itself. At first, PCs were for hobbyists interested in performance and features, and the ads reflected that. But as the machines began to sell into the millions, Apple’s ads began to emphasize how they were “the computer for the rest of us,” as the first Macintosh ads called them.

That first one for the Apple-1 in 1976, rivetingly entitled “A Balance of Features,” was appallingly amateurish. The ad, released only a few months after Jobs and Steve Wozniak showed the prototype at the Homebrew Computer Club in SiliconValley and incorporated their company, was stuffed full of technical features in a way that’s unimaginable today. For instance, the ad touted the ability to attach a keyboard and monitor to allow “the efficient entry and examination of programs in hexidecimal notation.” Who knew?

There was even a misspelling in the first line, a sign that Jobs’ famous perfectionism hadn’t quite kicked in yet. …

Read the complete post, including a photo gallery of the ads, at The New Persuaders.

Google Shuts Off TV Ads Business

From my Forbes.com blog The New Persuaders:

After five years of trying to sell ads on television using the automated buying system that works so well for its signature search ads, Google has finally given up. In a blog post this afternoon from Shishir Mehrotra, VP of YouTube and video, the ad giant said it will shunt the group’s staff to other projects:

Video is increasingly going digital and users are now watching across numerous devices. So we’ve made the hard decision to close our TV Ads product over the next few months and move the team to other areas at Google. We’ll be doubling down on video solutions for our clients (like YouTube, AdWords for Video, and ad serving tools for web video publishers). We also see opportunities to help users access web content on their TV screens, through products like Google TV.

The shutdown is clearly a disappointment for Google, yet another sign that its math-driven advertising systems don’t readily translate to traditional advertising. Back in 2009, the company shut down radio and print ad efforts for lack of interest.

Mehrotra’s not being entirely disingenuous when he says that Google’s efforts are better spent on online video advertising. After all, more and more TVs get connected to the Internet and more and more people watch TV shows on their laptops, smartphones, and tablets. With its Google TV project and its fast-growing YouTube video service, Google remains in a prime position to vacuum up ad revenues as big advertisers start to follow their audience onto the Web.

Indeed, YouTube especially has shown considerable traction in attracting new ad spending–$3.6 billion this year, by the reckoning of Citigroup analyst Mark Mahaney. As I wrote in a recent story, YouTube is where Google is placing its television-scale bets:

Now Mehrotra’s goal is to try to grab a big chunk of the $60 billion U.S. television business. But to do that, and fend off TV-content-oriented online rivals such as Hulu, YouTube has to become a bit more like conventional TV. To that end, it organized itself last year into TV-like channels, investing $100 million in cable-quality launches from Ashton Kutcher, Madonna, the Wall Street Journal, and dozens of others. More and more TV advertisers are being won over, says David Cohen, chief media officer at the media buying agency Universal McCann. “They’re getting marketers to think about YouTube as a viable outlet,” he says. 

Mehrotra, who last year became ­YouTube’s vice president of product, envisions millions of online channels disrupting TV, just as cable’s 400 channels disrupted the four broadcast networks. “We want to be the host of that next generation of channels,” he says.

In other words, Google’s strategy is to attack the TV ad business from where it’s strong instead of from where it’s not.

How YouTube Turned Into a Real Business By Making Ads Optional

From my story in MIT Technology Review:

In 2008, when Shishir Mehrotra joined YouTube to take charge of advertising, the booming video-sharing service was getting hundreds of millions of views a day. ­YouTube, which had been acquired by Google in 2006, was also spending as much as $700 million on Internet bandwidth, content licensing, and other costs. With revenue of only $200 million, YouTube was widely viewed as Google’s folly.

Mehrotra, an MIT math and computer science alum who had never worked in advertising, thought he had a solution: skippable ads that advertisers would pay for only when people watched them. That would be a radical change from the conventional media model of paying for ad “impressions” regardless of whether the ads are actually viewed, and even from Google’s own pay-per-click model. He reckoned his plan would provide an incentive to create better advertising and increase the value for advertisers of those ads people chose to watch. But the risk was huge: people might not watch the ads at all.

Mehrotra’s gamble paid off. YouTube will gross $3.6 billion this year, estimates Citi analyst Mark Mahaney. The $2.4 billion that YouTube will keep after sharing ad revenue with video content partners is nearly six times the revenue the streaming video service Hulu raked in last year from ads and subscriptions. And that suggests Mehrotra has helped Google solve a problem many fast-growing Web companies continue to struggle with: how to make money off the huge audience that uses its service free.

In 2008, Mehrotra was working for Microsoft and hankered to have his own startup, but he agreed to talk to a Google executive he knew about working there instead. He decided against it—but that evening he kept thinking about how the exec was frustrated that most ad dollars go to TV, even though nobody watches TV ads. Yet at his Super Bowl party two weeks earlier, Mehrotra recalled, guests kept asking him to replay the ads. Was there a way, he wondered, to make TV ads as captivating as Super Bowl ads, every day?

The answer came to him in a flash. …

Read the complete story in MIT Technology Review.

A Glimpse Into the Future of Television

If there’s one thing that struck me while I was researching an article on the future of television for Technology Review, it was all the fake living rooms. Google has one. So does Roku. So do LogitechSezmi, and Intel (which I believe has several in different states). I’m sure I missed a dozen more. It’s a sign of how important television, the star of living rooms real and faux, is to tech companies as they look to tap into the technology and media riches of the last great mass medium.

They’re all trying to figure out how to meld the medium they know–the Internet–with the one they hope to revolutionize: television. Yet with little native knowledge of television, Silicon Valley firms must troop consumer after consumer into these cozy little corners of their corporations and observe how people watch television and how they respond to their many efforts to bring the Web to the screen watched on average five hours a day. Even now, these companies are still struggling. Google, for instance, just told several consumer electronics manufacturers to hold off on planned launches of Google TV products at the Consumer Electronics Show in early January.

At the same time, the television industry has a lot to learn, too. Like the music industry, they’re in many cases fighting to keep too many people from watching television entertainment online, because that could damage their lucrative business models. But while they may have more leverage against the Internet hordes than the music industry had, thanks to both those business models and the durability of the TV experience for viewers, they don’t know any more about the Internet than the tech companies know about TV. Ultimately they will need to give viewers more flexible ways to view their content, or someone else will.

At this point, honestly, it’s tough to know how this volatile mix of TV and Net will shake out. I know, because I asked a whole lot of experts in both, and it was kind of amazing how uncertain nearly all of them are about what will happen even a couple of years from now. I hope to have provided some insight into how things could play out, but the uncertainty about what’s coming next in television is what I find most interesting: Whatever comes of this clash of two great mediums is going to surprise us all.