Is the Macklemore and Ryan Lewis Endorsement a Smart Move by Microsoft?
Apparently, pop/hip-hop duo Macklemore and Ryan Lewis are set to perform at a Microsoft store opening in Atlanta, Ga. This caught my attention 1) because I used to live in the city and was familiar with the mall where the store will debut and 2) I found it odd that a rap duo would perform a concert on behalf of a software store opening.
According to the ad, the Grammy-winning duo will be performing on May 31 to celebrate the store’s grand opening. Fans were encouraged to line up early (even the night before) for the possibility of meeting the performers.
As my music station returned, my thoughts lingered with the ad. What a creative marketing ploy!
At first mention, the grand opening of Microsoft store doesn’t sound like an event anyone wants to dedicate his or her Saturday evening to. But when you add the details of “free,” “concert,” and “Macklemore and Ryan Lewis,” I’m sure (for the group’s fans anyway) the idea of attending a store opening doesn’t sound too shabby.
And after some research, I soon discovered that this partnership has been an ongoing thing. Macklemore and Ryan Lewis have been performing at Microsoft store openings over the past few months, with upcoming concerts in New Jersey and Florida as well.
And perhaps I’m late on this information, but it seems Microsoft has also been using the duo’s music in its commercials promoting the new Outlook software. (I ended up watching two commercials featuring the pair’s “Get Going” song.)
I find this to be a really creative move by Microsoft. Macklemore and Ryan Lewis are extremely popular right now, and have even more prominence since winning four Grammys. We’re all familiar with the power of celebrity endorsements, and it’s clear that Microsoft is trying to use this to its advantage.
But will it work?
That’s the question Fast Company Writer, Austin Carr, poses in his article, “Can Macklemore Help Microsoft Fend Off Gmail ?” He notes that Microsoft’s reputation as the “go-to” mail service provider has declined and wonders if this new, aggressive ad campaign will change the company’s fortunes.
According to Carr, Microsoft has tried this tactic before with disappointing results. He writes:
The problem? Microsoft’s tried this strategy before, without much success. The public has been hit with a barrage of ads from Microsoft in recent years–with commercials for Windows 8, Windows Phone, Bing, Explorer, and its Surface tablet. Anyone who has watched TV in recent months can likely recite Alex Clare’s “Too Close” by heart due to the overuse of the company’s Explorer commercial…Yet Windows 8 sales haven’t accelerated at a fast enough clip to impress investors; Windows Phone market share remains low; Explorer has failed to stop Google’s Chrome browser from gaining popularity; and its Bing advertisements (or anti-Google ads) have failed to move the needle in terms of search market share.
Will this time be different?
In the article “Demand Spillovers, Combative Advertising, and Celebrity Endorsements ” from the American Economic Journal: Applied Economics 2014, author Craig L. Garthwaite studies the economic effects of celebrity endorsements on the publishing industry. He uses Oprah Winfrey’s former book club as an example.
Over the Club’s 15 years of existence, Winfrey endorsed 70 titles that sold millions of post-endorsement copies…I find three main effects of endorsements. First, consumers immediately increase purchases of an endorsed product. This estimated sales effect peaks at an approximately 6,000 percent increase during the week following the endorsement. In sub-sequent weeks, the effect smoothly declines, but remains large and statistically significant more than half a year later.
Garthwaite also says that another celebrity endorsement effect is that they “generate meaningful spillover benefits for cobranded goods. Immediately following the endorsement, the sales of nonendorsed titles written by endorsed authors increase.”
In Microsoft’s case, this could mean Macklemore and Ryan Lewis’s endorsement can lead to an increase of purchases for other Microsoft products besides Outlook.
The company may have used a popular song in its commercials before, but adding real-life concerts for free where fans may get to see and interact with popular artists is a totally different thing. This could be a major move to not only increase Outlook sales, but boost the company’s employer brand.
Do you believe this a smart move by Microsoft? Share your thoughts in the comments section below.