Report: AT&T spending $150 million on Lumia 900 ad campaign

AT&T has already said that it will be promoting the launch of the just released Nokia Lumia 900 quite a bit more than their normal smartphone product launches. Now a new report on Ad Age gives a specific number, claiming that AT&T will spend over $150 million to help sell the Lumia 900 to its customers.

That's a lot of ad money for one smartphone. The story says that AT&T spend $3 billion for its entire 2010 ad budget. Officially, AT&T has not confirmed the report.

One possible reason for such a huge marketing budget for the Lumia 900 is the fact that AT&T is losing subscribers to Verizon. AT&T lost its exclusive iPhone contract to Verizon in early 2011 and since then is getting close to losing its lead in terms of smartphone subscribers.

The article claims that in the year since Verizon added the iPhone, it saw a gain of 81 percent of smartphone subscribers, for a total of 32.2 million. By contrast AT&T still has 33.8 million smartphone subscribers but its rate of growth in the past year was only 37 percent.

AT&T most likely sees the Lumia 900 as a way to make itself look different than Verizon and Sprint, which also sells the iPhone now. Only time will tell if this effort will succeed.

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11 Comments

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AT&T deserves all the "grief and aggravation" it gets. When they abandoned the huge (but not very profitable) customer base who just want a phone: (1) to make and receive calls, and (2) possibly take some pictures; they left that marketplace wide open to others. Remembers, not everyone, but a long shot, has to have a phone glued to their ears. Hello "JiggerBug" and others.

este said,
Hard to see how they won't be losing money on this deal.

well, if you think about it....

They can easily make it back from the rates of charges. especially since it is a smartphone.
Id say they can make it back, just that they are going way out of the way to do make a good show.

Good for Nokia (and MS) but we will have to see how well it turns out

So with At&t putting all these money behind the Lumia 900 for Windows Phone 7 platform, does that mean they are finally going to start supporting it with updates like they are suppose to?

And yeah, I just visited one of the AT&T stores close to where I work to check the device out, and the Lumia and the Titan II are in a corner that is not highly visible to the customers.

thealexweb said,
That's quite a big gamble you have to admit.

I don't see it as one, if anything so far people who've seen and used a Lumia 900 all say they like the device. It looks good, feels good, has good build quality etc. If the ads do their job AT&T can make at least 2x of that back off of the contracts I'd say.

GP007 said,

I don't see it as one, if anything so far people who've seen and used a Lumia 900 all say they like the device. It looks good, feels good, has good build quality etc. If the ads do their job AT&T can make at least 2x of that back off of the contracts I'd say.

Yeah, this is the ad campaign Windows Phone should have had. I hope this leads to some good sales.

Good thing all the profits they get from charging outrageous amounts for their service is going to a good cause.