Blizzard's Advertising budget?

[Loop Stricken]

I'm going to ask a question that occurred to me last night when I was watching TV and saw an ad for the new WoW expansion. Why does Blizzard have to spend retarded amounts of money securing time on TV, ads in magazines and on web sites?

One would think that everyone who wanted or needed to know about the Kung-Fu Pandaland expansion, in fact a lot of us who didn't want to, were painfully aware of it well in advance of it's release. So what's the point? Why are they funneling money into advertising when their target audience (I.E. The people who are already hooked on their digital crack) is already aware of the product and it's release date? Are they hoping to get 1 player out of every 10,000 who see the ads to say "There's another WoW expansion out? I may have to dust off my armor and give it a shot."

You would think that money would be better spent on a project that isn't 8 years old and nearing the end of it's life cycle.

Why do adverts for toothpaste, cars, toilet paper still happen?

Serious question. Why do we continue to see adverts for everyday commodities?

 

[Jandau]

I'm going to ask a question that occurred to me last night when I was watching TV and saw an ad for the new WoW expansion. Why does Blizzard have to spend retarded amounts of money securing time on TV, ads in magazines and on web sites?

One would think that everyone who wanted or needed to know about the Kung-Fu Pandaland expansion, in fact a lot of us who didn't want to, were painfully aware of it well in advance of it's release. So what's the point? Why are they funneling money into advertising when their target audience (I.E. The people who are already hooked on their digital crack) is already aware of the product and it's release date? Are they hoping to get 1 player out of every 10,000 who see the ads to say "There's another WoW expansion out? I may have to dust off my armor and give it a shot."

You would think that money would be better spent on a project that isn't 8 years old and nearing the end of it's life cycle.

They are trying to bring in people who left, maybe get a few who never gave it a shot to maybe decide to find out what all the fuss is about (and has been for the better part of a decade). And no, from a purely financial standpoint I don't think it could be better spent, or at least we can't say for certain either way.

As for the game's "life cycle" as you put it, it's hardly near its end. For one thing, MMOs can last a damn long time. The original Everquest is still kicking around, for instance. The other thing to bear in mind is that WoW can hardly be said to be near its end when sub numbers are still stable. It's still pretty much a money printing device for ActiBlizz and you can be damn sure they'll be promoting their main source of income.

Seriously, how is this even a discussion topic? We're talking about the most sucessful AAA game of all time which has more people playing it than any other AAA title of any genre, despite the monthly sub. The marketing budget is peanuts compared to what it brings in on a monthly basis, and that marketing may even end up paying for itself.

 

[GeneralBob]

I'd imagine that Blizzard have a sizeable team of marketing analysts and experts who are paid to do nothing more than look at the optimum amount of advertising to do and the best places to do it in order to get greatest returns, and that they have thought about this exact problem and decided that they can attract enough new customers and resubscribers to make it worthwhile.

Then again, I'd imagine the same thing about EA, yet by this point I think they've fired anyone who might be sensible and done whatever the fuck they wanted.

You don't even need an expert, I'm a complete hack and I can see that it's profitable.

Let's look at the worst possible case: Advertising on fox during prime time will run you up half a million united states greenies, there are plenty of slots for <1/10 of that but like I said, worst case just to prove a point. Mists of Pandaria is going for $40, let's say 25% of this is packaging and shipping (I am a complete hack after all) leaving them with $30 profit per unit. For your half million advertisement you can expect about 9 million viewers. To break even only 1/540 viewers or 0.185% would have to buy the expansion, that's a pretty good deal, and not even taking into account additional profit from subscription fees as well as keeping up public appearances. Also remember this is the worst case, I'm sure the experts have figured out the sweetest method.

 

[jokr2thief]

Why do adverts for toothpaste, cars, toilet paper still happen?

Serious question. Why do we continue to see adverts for everyday commodities?

Because that's all they make, and they want to keep their brand fresh. Colgate makes toothpaste. Charmin makes toilet paper. Folgers makes coffee. That's what they do. Aquafresh and Crest make toothpaste, too. They advertise to get their brand awareness up. Just like Charmin isn't the only company that makes toilet paper and Folgers isn't the only brand of coffee. That's understandable when you're trying to be the loudest voice in a room full of people with the same message, and the cost of advertising is justified.

Blizzard's situation is a bit different. Other companies make games. Other companies make midevil fantasy MMOs, but there is still only one WoW, which completely regardless of how I personally feel about the game, is the gold standard by which all other MMOs are judged. I can see a few promotions to capture a returning audience. Banner ads on frequented gamer web sites like the Escapist, IGN and so-on, but to spend money on a TV spot? On Network TV? During Prime Time? That is not pocket change. It's not like they could just go digging for it in the cushions of their couch. That is a blatant waste, and they're not likely to see an appreciable return on an investment of that nature, and the resources could have been put to far better use. At this point, it just seems to me like they're flaunting their embarrassingly large pile of money in the faces of companies like NCSoft, Cryptic, and EA (Maybe not so much EA, But SW:TOR tanked faster than the Titanic) and saying "Look what we can do without having to make our game free to play!"

In the same vein, I didn't see *ANY* advertisements for Diablo 3. I'm not saying that they didn't exist, but I'm saying that I didn't see them... which speaks a lot to me, considering I am part of the target audience.

Seriously, how is this even a discussion topic? We're talking about the most sucessful AAA game of all time which has more people playing it than any other AAA title of any genre, despite the monthly sub. The marketing budget is peanuts compared to what it brings in on a monthly basis, and that marketing may even end up paying for itself.

Yay for missing the point. The question is why they're not using the money they're spending on this completely frivolous advertising in a more constructive manor. Blizzard is making money from WoW hand over fist. Why aren't they using it to move the industry forward, instead of just pissing it away?

 

[Charli]

Look this smacks a little of "I don't like WoW anymore and don't understand why it won't die", and I'm telling you now, person to person, just, ignore it. If you don't like something but it's not doing you personally any harm, just go about your life. It's just an ad, they rake in more than what the ad's worth, and the latest expansion feels like a labour of love, you can't really ask for more than that. All big game companies do it.

What this smacks of is not that I don't like WoW, It's that I don't like the people who play it. People like you, who will defend it as the pinnacle of what gaming has to offer. The people who will still continue to support Blizzard's cash cow, and not encourage them to innovate or encourage them to branch out and do anything new aside from sequels and expansions for franchises that have already been driven into the ground. They are a long-standing gaming company, and they keep handing us the same tired old shit. There was nothing groundbreaking about Starcraft 2. Diablo 3 is a joke, and now we have a WoW expansion with Kung-Fu Pandas. They're scraping the bottom of the barrel so they all still have jobs in the morning, and people are still eating it up.

My original question is why they're not using the money they spent on advertising to make a new game?

Okay now this is getting presumptuous, I never said it was the pinnacle of gaming. I play hundreds of other games, alot of what I believe to be far better, I just don't limit myself that way, where on earth did anyone state that? Because it wasn't me. And Blizzard are in fact working on a new I.P. weather it sees the light of day is yet to be called from the giant Blizzard announcement tower but WoW is paying for it's development, don't be so negative.

Yes people are eating it up because it isn't as bad as you're making it out to be and your opinions are not fact, others are allowed to enjoy what you don't. I reiterate. This is not hurting you in anyway. At all.
Move on and do something else. You're bordering on insulting and childish here and it's kind of pointless debating it. I defend it because you couldn't understand, it's called giving a point of view in response your topic, and you decided you didn't like my response, there's alot of things wrong with WoW and alot of people detest it and don't play it, that's fine. But you really don't need to hammer the point home, those people know and are comfortable about it, and so are the people who enjoy WoW. Why do you need to rock the boat unless you have some kind of scrotum rash that doesn't die down unless you have to have your say on the matter?

This topic was about ad budget right? Okay well head on over to MMO champion they'll be happy to do a breakdown on Blizzards spending and earnings for you. Advertisements make their own cash back. And 'project titan' (the new I.P.) is still in development following Blizzards still intact motto of 'it'll be ready when it's ready'.

They can't all have winners and I will concede Diablo 3 was a huge disappointment, but then plenty of other companies I regard highly have had shitty games too, what's new? Hopefully they cut the fat and continue on with integrity. And the newest addition to WoW is good. I'm sorry you attribute the Pandaran to what is actually a fairly enjoyable movie also but that's just the way it's panned out.

Opinions. Everyone has them, Allow it.

 

[Meatspinner]

I might be wrong here but I was under the impression that the publisher handled the promotional side.

 

[Risingblade]

Advertising leads to more people knowing about your product. The more people knowing about your product= more people who might buy it. It's common sense dude

 

[legendp]

why are they advertising?
because they can, I have never played wow nor do I ever plan on it, the thing I don't get is why they use CGI trailers, becuase I just think when I see a CGI trailer is that the game must be very very very boring if they don't even want to show it. I personally dislike mmo's in general (just behind sports games). They could put the money towards making Starcraft ghost instead (considering how much money they have wasted.
yeah it's a waste, no ones who doesn't already know is going to buy your game because of a fancy cgi trailer.

 

[legendp]

In the same vein, I didn't see *ANY* advertisements for Diablo 3. I'm not saying that they didn't exist, but I'm saying that I didn't see them... which speaks a lot to me, considering I am part of the target audience.

well I live in australia (sydney) and there was a lot of advertising down here for it.

 

[The_Lost_King]

Because Advertising works.

They will make money off of this advertising campaign.

People buy shit as a gift all of the time, most people are happy to buy their grandchild a $50 expansion or however much it is (I honestly don't even know). Stacks of people quit WoW, they want everyone to come back, this will help them achieve that goal.

Surely it can't be that hard to understand?

If you see an expansion that is $50 you are either in Australia or you are shopping in the wrong place. Usually expansions are $30 or less.

 

[likalaruku]

The answer is fairly simple - No bissnes is bigger then it's advertisment.

Didn't Mojang advertise Minecraft solely by word of mouth & going viral on the net?

 

[StBishop]

Because Advertising works.

They will make money off of this advertising campaign.

People buy shit as a gift all of the time, most people are happy to buy their grandchild a $50 expansion or however much it is (I honestly don't even know). Stacks of people quit WoW, they want everyone to come back, this will help them achieve that goal.

Surely it can't be that hard to understand?

If you see an expansion that is $50 you are either in Australia or you are shopping in the wrong place. Usually expansions are $30 or less.

Option 1. I am Australian.

I don't think it's $50 though, prolly $40.

 

[renegade7]

To ask why they advertise [dramatic pause] is to ask why leaves fall.

Ahem. Stupidest gaming line of the year.

Here is the reason: big business. WoW, despite a few obvious shortcomings as a community, typically knows what is happening with the game.

But for people who don't know as much about it, it's a way to rope in new people by saying "Look at this cool new stuff we're adding! Great time to start!"

And also, it looks good on budget reviews. If Blizzard pours money into advertising, it can go back to Activision and say they need more money for those 'big budget' projects.