Microsoft leads tech-ad spending in the first quarter with Windows 8 push

 Windows 8 Professional $200.00 Windows 8 isn't for everyone. If you're mostly a desktop PC user comfortable with Windows 7, upgrading to Windows 8 is probably not worthwhile. If you're a mobile user who needs easy access to the...

Tech advertising jumped 30 percent from a year ago during the first quarter, led by Microsoft, which pushed out Intuit to promote its latest operating system, called Windows...something or other.

In all, ad spending by tech companies totaled  $723 million, up 30 percent from a year ago. The jump was especially noteworthy because ad spending actually declined across all other sectors, Nielsen said.
For the last five years, Intuit has led all tech companies in advertising during the first quarter, as it promotes its TurboTax and Quicken software as the tax preparation season ramps up.

But this year, with Microsoft’s aggressive promotion of its Surface tablet, Windows 8, and Windows Phone, Redmond's ad spending jumped by 200 percent compared to the same period in 2012, when it was winding down Windows 7.

“Technology has become so widely available that it pervades every aspect of life to some degree,” said Randall Beard, global head of advertiser solutions for Nielsen, in a statement. “But with increased accessibility comes increased competition, and companies are investing hefty sums into creating buzz around their biggest products in order to secure a share of this sizable market.”

Other top advertisers included Apple, Google, and Amazon, Nielsen said. Its study included “hardware and software products including but not limited to cameras and photographic supplies, computers, handheld music players, stereo systems, and others.”

Whatever your feelings about Microsoft’s products, its advertising has arguably dramatically improved over the past quarter, with its Surface ads ditching the all-singing, all-dancing, all-clacking “Movement” premiere, replacing it with one that emphasized productivity.

Back in May, Wes Miller, an analyst with Directions on Microsoft, said that the second ad marked a sea change. “It is significant, because it is the first ad that really shows what Surface can do that the iPad cannot,” Miller said. “Rather than ‘dancing around’ the Surface, I like that this ad actually tries to clarify the unique features of the device.”

Meanwhile, Microsoft’s Windows Phone ads have skewered both the Android market as well as iOS fanatics, both with ads that attack Siri and the iPad as well as my personal favoreite, embedded below.
Has Microsoft’s advertising affected your view on the company and its products? Or is it the same old stodgy Microsoft? Let us know in the comments below. 

Gartner downgrades 2013 global IT spending forecast on currency shifts

Gartner has lowered its expectations for growth this year in global IT spending, saying it will rise 2 percent to $3.7 trillion. Earlier this year, the analyst firm predicted 2013 growth of 4.1 percent.

The reduction "mainly reflects the impact of recent fluctuations in U.S. dollar exchange rates," Gartner said Tuesday.

Predicted weaker sales for devices played another role in Gartner's downgrade, analyst and managing vice president Richard Gordon said in a statement. Gartner had previously forecast 7.9 percent growth in device revenue, but has now dropped that estimate to 2.8 percent due to continued decline in PC sales.

"While new devices are set to hit the market in the second half of 2013, they will fail to compensate for the underlying weakness of the traditional PC market," Gartner said in a statement.

Meanwhile, tablet sales are expected to grow 38.9 percent and mobile phones 9.3 percent in 2013, according to the announcement. Overall, device revenue will total $695 billion in 2013, Gartner said.

Enterprise software revenue is expected to show the most strength, rising 6.4 percent this year to $304 billion, driven by higher demand for CRM (customer relationship management) software.

Data center systems sales will rise 2.1 percent to $143 billion and IT services revenue is set to jump 2.2 percent to $926 billion, both slightly higher growth rates than in 2012, according to Gartner.

The largest segment in Gartner's survey, telecom spending, will rebound this year, growing 0.9 percent to $1.65 trillion. "Fixed broadband is showing slightly higher than anticipated growth," Gartner said. "The impact of voice substitution is mixed as it is moving faster in the consumer sector, but slightly slower in the enterprise market."

Last year, telecom spending fell 0.7 percent.

Gartner is planning to discuss the forecast in more detail during a webcast July 9.

US consumer spending rose in May

The consumer spending figures helped lift Wall Street US consumer spending rebounded in May, rising by 0.3% and reversing a 0.3% fall in April, official figures show.


Other data published on Thursday also suggested that the US economy remains on a growth path.

The number of new claimants for unemployment benefits fell last week, while contracts to buy previously-owned homes were at a six-year high in May.

The data helped lift Wall Street, with the Dow Jones up 1% and S&P and Nasdaq indexes up about 0.8%.

Analysts said the figures were not spectacular, but at least showed that the economy was heading in the right direction.

The Labor Department said initial claims for unemployment benefits last week fell 9,000 to a seasonally adjusted 346,000. The four-week moving average for new claims, which irons out week-to-week volatility, fell 2,750 to 345,750.

"Economic growth is not over the top, that's for sure," said Chris Rupkey chief financial economist at the Bank of Tokyo-Mitsubishi. But he added: "We expect, however, economic growth will be strong enough to bring unemployment down at an acceptable pace."

Consumer spending rebounds, income jumps

WASHINGTON - Consumer spending rebounded and incomes recorded their largest increase in three months in May, adding to data that have suggested the economy has shifted to firmer ground.

The Commerce Department said on Thursday consumer spending increased 0.3 percent last month after a revised 0.3 percent drop in April. Consumer spending in April was previously reported to have declined 0.2 percent.

Last month's spending increase was in line with economists' expectations. When adjusted for inflation, consumer spending rose 0.2 percent last month after dipping 0.1 percent in April.

Consumer spending accounts for 70 percent of U.S. economic activity. Though the pace of spending has slowed from the 2.6 percent rate notched in the first three months of the year, consumers will likely continue to drive growth in the second quarter.

Recent data, including housing, regional factory activity, business spending plans and consumer confidence, have pointed to an economy that is regaining some speed after stumbling early in the second quarter.

That is broadly supportive of Federal Reserve's view last week that the downside risks to the economy's outlook have waned.

That theme held as other details of the Commerce Department report showed income grew 0.5 percent last month, the largest gain since February, after nudging up 0.1 percent in April. That reflects a steady pace of job gains.

There was also a bit of inflation in the economy last month, pointing to some pick-up in demand.

A price index for consumer spending inched up 0.1 percent in May after declining two straight months. A core reading that strips out food and energy costs also rose 0.1 percent after being flat in April.

Over the past 12 months, inflation rose 1 percent, still below the Fed's 2 percent target. The index had increased only 0.7 percent in the period through April.

Core prices were up 1.1 percent from a year ago after rising by the same margin in April.

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Consumer spending rebounds, jobless claims fall

WASHINGTON - Consumer spending rebounded in May and new applications for unemployment benefits fell last week, suggesting the economy remained on a moderate growth path.

The Commerce Department said on Thursday consumer spending increased 0.3 percent last month after a revised 0.3 percent drop in April. Consumer spending in April was previously reported to have declined 0.2 percent.

Last month's spending increase was in line with economists' expectations. When adjusted for inflation, consumer spending rose 0.2 percent last month after dipping 0.1 percent in April.

In a separate report, the Labor Department said initial claims for unemployment benefits fell 9,000 to a seasonally adjusted 346,000. The four-week moving average for new claims, which irons out week-to-week volatility, fell 2,750 to 345,750.

U.S. stock index futures slightly added to earlier gains after the data. U.S. Treasuries prices extended price gains and yields fell to session lows, while the dollar pared gains against the yen.

Recent data, including housing, regional factory activity, business spending plans and consumer confidence, have pointed to an economy that is regaining some speed after stumbling early in the second quarter.

That is broadly supportive of the view the Federal Reserve expressed last week that the downside risks to the economy's outlook have waned. Fed Chairman Ben Bernanke said the U.S. central bank could start scaling back on the pace of its monthly bond purchases this year.

Consumer spending accounts for 70 percent of U.S. economic activity. Though the pace of spending has slowed from the 2.6 percent annual rate notched in the first three months of the year, consumers will likely continue to drive growth in the second quarter.

The firming growth theme held as other details of the Commerce Department report showed income grew 0.5 percent last month, the largest gain since February, after nudging up 0.1 percent in April. That reflects a steady pace of job gains.

Households also saved a bit more last month, lifting the saving rate to a five-month high of 3.2 percent.

There was also a bit of inflation in the economy last month, pointing to some pick-up in demand.

A price index for consumer spending inched up 0.1 percent in May after declining two straight months. A core reading that strips out food and energy costs also rose 0.1 percent after being flat in April.

Over the past 12 months, inflation rose 1 percent, still below the Fed's 2 percent target. The index had increased only 0.7 percent in the period through April.

Core prices were up 1.1 percent from a year ago after rising by the same margin in April.

Falling healthcare costs are dampening inflation pressures. Bernanke has said the weak healthcare costs were likely to transitory.

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