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Nokia threw in $450 in ads for every Lumia sold in the States?

Posted: , by Victor H.

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Nokia threw in $450 in ads for every Lumia sold in the States?
Nokia spent around $450 on advertizing for every Nokia Lumia device it sold in the United States, according to analyst estimataes. That’s a curious little detail that went a bit under the radar around the Finns’ second quarter performance announcement.

The average return of a Lumia device on the other hand is said to average at around $45 per device, or a tenth of the marketing spending. And now this could well explain why Nokia is looking for ways to change its marketing approach stateside.

Clearly, the huge ad spending on AT&T was paid for with Nokia and Microsoft cash with the sole goal to gain market share. But with only 600,000 Nokia devices sold in North America total, the number of Lumia smartphone sales didn’t seem to really catch up by any means.

The Financial Times, now reports that Nokia is seeking exclusivity deals for the Windows Phone 8 launch with carriers like Orange France, so instead of going for full scale and availability across all operators, Nokia is adopting the model Apple used in its early days and has moved from since now. Will it succeed and how much marketing will Windows Phone 8 need? Those are some questions we’d be happy to hear your thoughts about in the comments below.

source: The Register

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posted on 23 Jul 2012, 02:46 5

1. MeoCao (unregistered)

what's stupid money!

posted on 23 Jul 2012, 02:56 3

2. Bluesky02 (Posts: 1439; Member since: 05 Dec 2011)

For a starter selling 300,000 Lumia at AT&T is not bad
Imagine if
Sprint sold 100,000
Verizon sold 200,000
T-Mobile sold 50,000
This would have been a very encouraging for start, but so far U.S Carriers are very reluctant to sell Windows Phones since they are very comfortable with Android.
Only one major carrier is pushing Window Phones seriously because Nokia & Microsoft paid for it. If all carriers want money to push windows phones, then this will be the end of it, i fear.
I'm sure that this year and next, Sprint won't be touching windows phones since they made a bankruptcy deal with Apple.

posted on 23 Jul 2012, 03:28 3

3. tigermcm (Posts: 860; Member since: 02 Sep 2009)

thats why come Dec. if i hear NOTHING about wp8 coming to Sprint I will have to give up my unlimited data and go elsewhere, my fiancee is already testing at&t

posted on 23 Jul 2012, 04:23 1

4. Mobira (Posts: 4; Member since: 19 Jul 2012)

How do we then explain the growth in revenues, both Q-on-Q and Y-on-Y, in the range of 40%? Royalties?

posted on 23 Jul 2012, 05:45

5. darktranquillity (Posts: 284; Member since: 28 Feb 2012)

It must be Elop's idea

posted on 23 Jul 2012, 06:07

6. Gaurav008 (Posts: 328; Member since: 20 Jul 2012)

perhaps it might take off..what with nokia's designs nd great productd and an upcoming great os(wp8)...get the ball rolling..nokia..

posted on 23 Jul 2012, 07:57

7. cdgoin (Posts: 570; Member since: 28 Jul 2010)

The ads and launch have been horrible.. It started with horrible WP7 launch and with Dell taking the most unique and best phone, away from MS, and selling it purely online they removed any phone that would have made the WP experience different. Then there was relying on AT&T at launch.. Then not getting a Verizon or Sprint phone to the market in a timely fashion BEFORE they got the iPhone. So when iPhone hit Verizon and Sprint, they missed that boat. Then with the iPhone 4S coming out last year and NOT iPhone 5.. they really missed that window (no pun intended) of opportunity. Don't get me wrong I am a WP fan and love my DVP.. I have even stock piled a few DVPs for when my current one breaks down. But sadly I am just seeing the writing on the wall.. they have ONE shot with it.. Windows8 HAS to be great from launch and they HAVE to launch all three (Phone, Desktop, and Slate) at once.. so everyone sees the benefits.. otherwise MS is doomed in a really big way.. From a marketing and promotion standpoint they seemed to miss the boat so often with product and most importantly the carriers, it doesn't bode well for MS.

posted on 23 Jul 2012, 09:29

12. tigermcm (Posts: 860; Member since: 02 Sep 2009)

you do know its Verizon and Sprint that werent interested in wp.

posted on 23 Jul 2012, 11:35

13. cdgoin (Posts: 570; Member since: 28 Jul 2010)

Yes and no..

They got them.. but much later in the game after the intial "hoopla' was over. Because MS didnt have the CDMA software/hardware ready at launch.

Add to that since the hardware was old and nothing was special about their WP HTC models, that they didnt already have in a Droid version and they didn't have LTE or any other 4G radios... They didnt get promoted by the stores and rightfully so.

They should have had CDMA ready at launch and launched with all 4. Even using the GSM reason, they could have launched with T-mobile and been more exclusive with them. Instead they send the best phones to AT&T where the AT&T reps could give a care less and direct everyone to iPhone. T-mobile doesnt have iPhone and needed something to make them different WP could have done that. They needed a HTC Radar and Nokia 710 at Launch not months later. Up to that point the only T-mobile phone was the HD7 which was too big for most. The other phone the Dell Venue Pro had no support and you could only find at the Dell website.

Nokia could have sold a ton more if they sold the 900 at T-mobile. But instead Tmo has the 710 and only the 710 and even now teh stores are mothballing all their WindowsPhones, they took MSs money promoted the phones for about 4 months and then stuffed them in the back again.

Overall, the phone selection at places other than AT&T, execution of the launch and promotion in the US has been horrible. MS has been absolutely blind to the fact AT&T was the worst partner, and they are sticking to it to this day.. and that will be their downfall.

posted on 23 Jul 2012, 08:01 1

8. IamYourFather6657 (Posts: 321; Member since: 01 Jul 2012)

Are they burning Hell notes ? ( In chinese taoism culture we burn hell notes to our ancestors usually in big amount like 1000 a note )
They are burning cash way too fast

posted on 23 Jul 2012, 08:08 2

9. tanjunse (Posts: 5; Member since: 21 Jul 2012)

If the phone is good, it sells itself. Doesn't need much ad spending. Word-of-mouth, bloggers recommendation, etc.

SO the problem is that Lumia and Windows Phone OS sucks. No amount of ad spending can reverse the laws of physics.

posted on 23 Jul 2012, 11:40 1

14. cdgoin (Posts: 570; Member since: 28 Jul 2010)

Not true the 900 is a gorgeous phone.. and sells well outside the US.

Problem is they are only selling it at AT&T.. that's was like trying to launch the Windows Slate at a Mac store.

AT&T is in bed with Apple, and always will be.. its their bread and butter. They won't be doing MS any favors.. MS needs to launch with TMo next time.

Tmo is the ONLY Store without the iPhone..

It's unbelievable that MS doesn't see that AT&T is taking their money but not backing it up at their stores.. there is a reason all the ads arent working.. go to a AT&T store and just ask about a "New phone" see if they don't direct you to the iPhones and Androids, and down play the WindowsPhones.. I have and they do.

posted on 24 Jul 2012, 05:03

18. denied911 (banned) (Posts: 361; Member since: 31 May 2012)

900 suck

posted on 23 Jul 2012, 08:37 2

10. MISTER_H (banned) (Posts: 97; Member since: 08 Jul 2012)

Windows will never over-take Symbian or Android
because there is to much restrictions that Microsoft
put on Windows. Nokia Symbian owners thought, that Nokia
chosing Windows they would allow some Symbian
to work on Windows, but they have not. No Bluetooth sending
and receiving and no chance of improving the phones
memory with micro SD card, and not able to customise how you'r Windows
phone look, and also having to use Zune is allways a pain in
the arse, " like Apples own iTunes"..... Symbian user's will
choose Android, because you are allowed to do all u
want in Symbian. Windows Wp7.7.8 and Wp8 is a fail.....!

posted on 24 Jul 2012, 05:05

19. denied911 (banned) (Posts: 361; Member since: 31 May 2012)


posted on 23 Jul 2012, 09:05 1

11. Gaurav008 (Posts: 328; Member since: 20 Jul 2012)

Mister_H...check out windows 8..for your above mentioned problems...they are dealt in windows8...

posted on 23 Jul 2012, 15:14 1

15. andro. (Posts: 1999; Member since: 16 Sep 2011)

No matter how much you spend on advertising the product if people don't want or like it will not sell. Nokia needs to realise this before its too late.

posted on 23 Jul 2012, 19:48 1

16. aoikemono27 (Posts: 177; Member since: 27 Feb 2012)

Man why didn't they just give the phones away? No contract. Absolutely free. That would double the number of phones in people's hands! Using the existing ad budget, $450 would net two lumia 900 phones wholesale.

posted on 23 Jul 2012, 23:24

17. dmn666 (Posts: 244; Member since: 19 Oct 2011)

$450 per Lumia - holy crap! I hope that's not right. Nokia seriously lost their mind. They didn't bother to put a decent camera on 900. At least they could put the N8 camera on 900 and I bet it would have sold much more.

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