Accidental Advertising Campaigns

For Intel, the lights went on in 1989. An advertising campaign aimed at urging computer manufacturers to switch to its latest microprocessor, the 386, had the surprising side-effect of persuading consumers to ask for 386-based computers. At the time, says Dennis Cartel, Intel vice-president and director of marketing, I didnt rea-lly know what a brand was. But it became evident that we had created a brand and that it made a difference in purchase plans.

The next step was to brand not merely one product but the whole range, using the now-familiar Intel inside logo. Intel launched the campaign in 1991 with its first co-operative advertising program-me, offering to share the costs of advertising with computer manufacturers that used Intel chips.

 

Soon after came the first Intel inside TV commercial a journey through the innards of a PC, ending up at the microprocessor stamped with Intels logo. It had become the first semiconductor company to hawk its product to consumers as though it were a new cola.

Intel initially tailored its advertising to different markets. In Japan, for example, the logo read Intel in it, but was abandoned when the company found the Intel inside brand was better recognised beca-use of information from the US. This really drove home the homogeneity of the global PC market, says Carter. Since then, its logo has appeared in more than $3.4bn wor-th of advertising according to Intel.

In comparison, Yahoo!s marke-ting resources are meagre. But the web navigation service has made full use of the global reach of the internet to build its name, relying heavily on users to spread the word.

Yahoo! grew out of a list of favourite web sites maintained by two Stanford University students. Although theirs was one of hundreds of similar hobbyist web guides at the time, it drew followers with its contemporary style and catchy name.

A big portion of what has got Yahoo! on the map is just great word of mouth, says Karen Edwards, director of brand management. In particular, Yahoo! built a grassroots following among the many newcomers to the net who regarded the service as a friendly home base among the confusion of the web.

Yahoo! also attracted users at minimal cost through strategically placed hyperlinks on other web sites, such as the home page of Netscape Communications, the leading supplier of web browser software. The start-up company demonstrated the potential of the internet for building global brands. Even before Yahoo! spent money on traditional advertising, it was attracting users worldwide. Last year, it began advertising on TV and radio in an attempt to encourage near surfers to use its services.

When we went out and advertised on television early last year, it was every last penny we had, Ms Edwards recalls. But the move paid off by helping Yahoo! to differentiate itself from a growing band of competitors by achieving broader brand recognition.

Last spring, the group launched its initial public offering providing extra funds for more advertising and expansion of its services. Yahoo! is the most highly valued internet media company, with a market capitalisation of $2.3b. An estimated average of 5 m computer users go to Yahoo!s web pages every day. About 30 per cent of visitors to Yahoo!s web site are from outside the US and the company has also established web guides aimed at international markets.

Even as Yahoo! is making more use of old media to promote its br-and name, Intel is moving on to the web. The semiconductor company is among the biggest spenders on the banner ads that adorn many web pages.

Louise Kehoe & Nick Denton