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Google May Bet $500 Million on Marketing Moto X

Google May Bet $500 Million on Marketing Moto X
July 15, 2013 2:08PM

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Along with advertising the phone's benefits and features, Google hopes to leverage patriotic fervor by stressing that the Moto X is the only one made in the United States. Google already began advertising the Moto X last week both online and in newspapers, with the tagline: "Designed by you. Assembled in the USA."

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The highly anticipated Moto X will be the first phone to come out of Motorola since Google's acquisition of the company, and according to a recent report, Google will make sure everyone knows about the device. The report suggests Google will spend $500 million marketing the Moto X, which is expected go on sale this fall.

All four of the major U.S. wireless carriers are likely to pick up the device, and the extensive marketing efforts by Google may well be the reason why, according to The Wall Street Journal. This marketing campaign will be directed at U.S. customers and some overseas markets such as Europe, but will not be a global effort.

Spend Money To Make Money

With Apple and Samsung in control of more than 60 percent of the smartphone market, Google and Motorola are in need of a widely received phone in order to increase their relatively low 7.8 percent market share.

Even though Google is not doing anything unheard of money-wise, its marketing campaign for the Moto X goes farther than most. Apple has reportedly spent more than $300 million for its iPhone advertising each year and Microsoft spent around $400 million when launching its Windows phones.

Along with advertising the phone's benefits and features, Google hopes to leverage patriotic fervor by stressing that the phone is the only one made in the United States. Even with little information being provided to the media regarding the device, Google already began advertising the Moto X last week both online and in newspapers, with the tagline: "Designed by you. Assembled in the USA."

Since Google has restrained itself from heavily marketing Google Glass, the company not only has lots of money to throw at a different device, but Google also believes the Moto X will be a popular draw.

Apple Set in Its Sights

Outside of Apple devices like the iPhone, almost every popular smartphone on the market right now is filled to the brim with carrier bloatware. Google and Motorola could even be limiting how many extra applications the carriers put on the device prior to selling it. Even though carriers frequently tout their applications and programs as being "necessary" or "beneficial," Google is reportedly listening to its customers and striking deals with carriers to keep their software off of the Moto X.

It is obvious that Google is directly targeting Apple with its campaign, considering the "made in America" text on each of the Moto X ads so far. With all of the concern and disgust that Apple has had to deal with due to its use of potentially unethical Foxconn factories in China, Google is betting customers will like that fact that the Moto X is being made in Fort Worth, Texas, and not in a Foxconn facility.

Google is expected to officially unveil the Moto X later this summer and will likely set a launch date for this fall.

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