ADT Spends $100 Million On Marketing

Adweek reports that ADT spends $100 million per year on marketing for 6+ million customers. That is a huge sum for the security industry, though the company did $3.3 billion in revenue in its last fiscal year.

ADT's CMO emphasized the threat of cables and telco companies:

"The category is changing rapidly with Telcos and cable companies coming into the space. So we’ve got to make sure we’re relevant and we resonate with customers who are making a decision about protecting and connecting in their homes. That focus on being relevant has never been more important to the company."

And here's how they view the market:

Though they seem to be dreaming with their projections of future market expansion:

I am just sharing some stuff I found and throwing it out in case anyone has insights or comments.

That breakdown is like $17 per customer. (100M / 6M = $16.67)

It's interesting to see that they peg 100% penetration of wireless in US homes? Interesting because I see tons of marketing spent on just that segment (much more than security), but it appears the market has less upside for new business.

That's for all existing customers. If you allocate it just for new customers, it's astronomically higher. How many customers are they adding each year? A fraction of 6 million.

Coincidence? ADT just came to our door unannounced soliciting 'security solutions'.

Not sure if he went to everyone's door or was drawn to our house because of its unusual two-off camera mounting...

I would have rather got $17...

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