How Does Microsoft Advertise Their Products

Microsoft is the world leader in operating systems, founded by Bill Gates and Paul Allen in 1975. It ranked no. 21 in the Fortune 500 rankings in 2020 and has the third-highest global brand valuation.

It is a research and development-driven company that identifies customer needs and launches a wide variety of products and services to provide for them. Its portfolio includes consumer electronics, software products catering to business enterprises, gaming devices, and services for both enterprises and consumers.

But how did Microsoft manage to reach such a high level of recognition? 

Advertising and media campaigns are two essential methods for Microsoft products to be promoted. It has focused on advertising to attract different consumer segments. Microsoft spent a total of $21.83 billion on sales and marketing.

A significant amount of its multibillion-dollar marketing budget is dedicated to advertising that highlights the advantages and applications of Microsoft products which can help people and companies maximize their potential. 

Mainly, Microsoft advertises the following products and services on the market: 

• Devices

• Software products

• Social media

• Games

How Microsoft Advertises Devices 

Microsoft's products include operating systems for desktop computers, servers, phones, and other intelligent devices. They also develop and market hardware such as the Xbox 360 gameplay and leisure system, Kinect for Xbox 360, Xbox 360 accessories, and Microsoft PC hardware products.

Out of all devices, in the spotlight, there are the Microsoft Surface Laptop and Xbox gaming consoles.

Microsoft Advertising on Surface Laptop Studio

Microsoft launched a new product range called Surface Laptop Studio on September 22, 2021, at their Surface Event. Microsoft's new Windows 11 operating system already runs on the Surface Laptop Studio.

Microsoft has several strategies for promoting the Surface Laptop Studio, both through specific platforms and various campaigns. For example: 

• Uses retail marketing to advertise the Surface Laptop Studio in its shops as well as through collaborations with sellers like Best Buy, Amazon, and others.

• Frequently collaborates with influencers and content makers such as Marques Brownlee, Austin Evans, to promote the Surface Laptop Studio in photos, videos, and other formats on social media. And last but not least, Surface Studio is also active on social media, like Instagram, Twitter, Facebook, and YouTube.

• Microsoft showcases their Surface Laptop Studio at events such as trade shows and experiential marketing campaigns, it gives consumers the opportunity to physically see and try the product.

• To create buzz and interest in the Surface Laptop Studio, Microsoft applies public relations tactics like press releases, media interviews, and product reviews.

How does Microsoft promote Xbox 

Microsoft created Xbox in 1999 to compete against Sony's Playstation 2. Four engineers from Microsoft's DirectX team, Kevin Bachus, Seamus Blackley, Ted Hase and Otto Berkes, envisioned what a Microsoft console would look like.

Today, Xbox includes five video game consoles, also games, streaming services, an internet service known as Xbox Network, and the Xbox Game Studios' production arm. 

One of the largest Xbox ad campaigns was back in the mid-2000s when Microsoft launched a $40 billion marketing campaign for the 2007 Xbox 360 exclusive Halo 3 game, which was a record-breaking success, selling 14.5 million copies. By September 2007, a second trailer made by global advertising firm McCann-Erickson and launched on December 4, 2006, had been viewed over 11 million times.

Starting September 11, 2007, the last major Halo 3's commercial campaign included a series of videos with the slogan “Believe”, a virtual reality game, 10,000 worldwide launch events, and commercial collaborations with PepsiCo and Burger King. Probably this was the essential marketing push Xbox needed to become a serious competitor in the gaming console market. 

Xbox Australia and New Zealand are aiming to increase brand awareness and engagement during PAX Australia in 2019, offering both attendees and viewers at home an active brand experience.

Xbox has a strong presence on all major social media platforms as Instagram, Facebook, LinkedIn, and Twitter, with posts ranging from promotional, informational, and product launches to relatable memes. This ensures high engagement from users.

However, Microsoft doesn’t spend by far on Xbox advertising compared to Sony’s PlayStation. Footage from 2020 shows that the ad budget for PlayStation 5 compared to the one for Xbox Series X was more than x2 higher. 

How Microsoft Advertise its Software Products 

Microsoft 365

Microsoft rebranded the majority of their standard Office 365 editions as “Microsoft 365” to represent the addition of features and services beyond the core Microsoft Office suite.

• Microsoft promotes it's 365 using a variety of online advertising channels, including Google Ads and social media sites like LinkedIn, Twitter, Facebook, YouTube and Instagram.

• Highlights information about Microsoft 365 on its websites, such as its features, payment options, and client testimonials.

• Attends a variety of industry events and trade shows to promote Microsoft 365 and its powers.

• Partners with other companies and organizations to promote Microsoft 365, such as through co-marketing campaigns and joint webinars. For instance: 

• Microsoft collaborates with hardware manufacturers such as Dell, HP, and Lenovo to integrate Microsoft 365 into their products, making it simpler for users to sign up for the service.

• Partners with industry associations to promote Microsoft 365 within specific industries, such as the National Restaurant Association, which offers a specific suite of tools for restaurant owners.

• Teams up with educational institutions to deliver its 365 product on all levels. Especially considering that Microsoft Office 365 is targeting the educational system across the globe through its features

• Microsoft uses email marketing campaigns to connect with potential buyers and tell current clients about new functions and improvements.

How Microsoft Advertises Windows

Microsoft has used a variety of advertising methods to promote its Windows operating system over the years, including television commercials, internet campaigns, and partnerships.

Some of the most effective Windows advertising efforts in history include:

• The 1995 “Start Me Up” campaign featured the Rolling Stones' tune and promoted the new features of Windows 95, becoming one of the most iconic tech advertisements of all time. Microsoft spent $200 million on its debut promotion, of which $8M went to the Rolling Stones for their song Start Me Up. The first Microsoft television ad was produced by Wieden+Kennedy. However, not everyone was buying the hype.

• “I'm a PC” is the title of a television commercial campaign developed by Crispin Porter + Bogusky for Microsoft (CPB). The series was first shown in September 2008. The new commercials take the position of those that starred Jerry Seinfeld and Bill Gates. The $300 million advertising campaign was created to compete with Apple's Get a Mac effort by showing ordinary people as PC consumers. 

• “Windows 7 was my idea” - This 2009 campaign encouraged Windows users to contribute their advice for improving the operating system. The advertisements usually feature one person and close with the words “I'm a PC, and Windows 7 was my idea”. Huge ads for Windows 7 cover Times Square in New York. Banners and posters were everywhere, everyone knew that it was the launch of Windows 7.

• Windows 11 Brings You Closer to What You Love is the title of the latest windows generation, and was launched in September 2021. In addition, Microsoft launched a commercial video to introduce the 11th generation of Windows, which gained more than 10 million views on YouTube. 

Microsoft has sponsored events and organizations that match its brand worth and also used social media to promote new features of its operating system to reach a wider audience.

How Microsoft Advertises LinkedIn 

LinkedIn was acquired by Microsoft for $26.2 billion to expand the business networking site and incorporate it into Microsoft's enterprise products. So, Microsoft had access to the large user base of LinkedIn and got sales and distribution power. 

• Microsoft frequently cross-promotes LinkedIn to customers using other products, such as Microsoft Office and Windows. LinkedIn's notifications, for example, can appear in an Outlook email inbox of users, as well as LinkedIn Learning Courses may be offered to Microsoft Teams users.

• Microsoft creates highly specialized advertising campaigns for LinkedIn using its massive user data, including lookalike targeting, retargeting, account-based marketing, job title targeting, and industry-specific targeting.

• Microsoft collaborates with intellectuals and influencers across a range of sectors to promote LinkedIn as an excellent tool for professional growth and networking. These influencers may provide sponsored content, take part in webinars, or deliver speeches at trade shows which makes LinkedIn more visible. 

Bill Gates is one of LinkedIn's super influencers, a network of business moguls who contribute blog posts. President Barack Obama, Deepak Chopra, and Richard Branson, one of LinkedIn's most well-known users with over 1.8 million followers, are a few more remarkable influencers.

• To give consumers a smooth experience, Microsoft has integrated LinkedIn with a number of its other products, including Microsoft Dynamics 365. Targeted advertising efforts are frequently used to promote these campaigns. The company's subscription business will grow, and it will also enhance user engagement. It also makes way for more precise advertising.

How Microsoft Advertises Games 

Minecraft 

Microsoft paid $2.5 billion to acquire Minecraft intellectual property. In addition, the game had no distributor support at the time and had never received paid commercial promotion outside word-of-mouth and a few uncredited mentions in popular media, like the Penny Arcade webcomic.

Minecraft's popularity is also due to its “earned media” from its fans who created videos about Minecraft on YouTube which were and are very visualized, which is free to the brand.

YouTube became a main platform for sharing and community-building outside the game, helping fans make money via advertising and engagement tools. This made Minecraft become the biggest streaming video platform for the game, and its community is key to its success.

Minecraft is among the top 5 games on YouTube as you can see in the chart below, leading the way due to its popularity among fans. Minecraft went viral with the help of YouTube, increasing its popularity quickly.

Additionally, the Xbox 360 version of Minecraft sold 400,000 copies in just 24 hours, beating the previous record for the fastest-selling Xbox Live Arcade game and the first-day digital sales for the Xbox Arcade.

Microsoft held a convention - The official launch of Minecraft (Minecon 2011) in Las Vegas with 5,000 fans, showing an early playable version of Minecraft for the Xbox 360. This launch brought “Minecraft” to the console generation. By April 2021, it had sold 238 million copies worldwide.

Blizzard

Activision Blizzard is one of the largest video game publishers in the world, with annual revenues of $8.8 billion in 2021. Investing in the gaming industry is a bet on a new revenue stream.

Microsoft declared its intention to buy Activision Blizzard for $68.7 billion in cash on January 18, 2022. Under the terms of the agreement, Microsoft will acquire Activision, Blizzard Entertainment, and King under the Xbox Game Studios brand, expected to close by Spring 2023.

Let's find out how Microsoft promoted Activision Blizzard to gain more popularity: 

• In its effort to convince UK and US Regulators that the Blizzard deal is compliant with international and local laws, Microsoft ran a full-page ads campaign on news websites as the starting point of advertising Blizzard itself.

• Microsoft has also advertised Blizzard games by announcing Xbox-exclusive games.

• Cross-platform play is viewed as a way to maintain an important player base for a game even after it has been released for a while. For instance, cross-platform play is a feature that some Blizzard games, like Overwatch, enable, users from various platforms to play together. This functionality has been advertised by Microsoft to the Xbox and PC gaming communities.

According to Statista, Activision Blizzard spent $882 million on advertising in 2022, its highest ad spending yet. The gaming industry was one of the few industries that grew during the global coronavirus pandemic. Activision Blizzard increased its spending during 2020-2021 compared to 2019.

Blizzard has recently released the following games: Overwatch 2 (2022), Diablo Immortal (2022), World of Warcraft: The Burning Crusade Classic (2021), and Diablo II: Resurrected (2021). 

Tying it all together

Over the years, Microsoft has implemented various promotional campaigns that have helped to gain visibility on the market. Though only about 6% of Microsoft's $198 billion in income last year came from advertising. Microsoft earned $12.23 billion from digital advertising last year, but this represents just 2.2% of all digital advertising globally.