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Samsung spent an absolutely mind-blowing sum on advertising and sales promotions in 2013

Posted: , by Chris P.

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Samsung spent an absolutely mind-blowing sum on advertising and sales promotions in 2013
We all know that Samsung is a truly giant company. We also know that its daughter company, Samsung Electronics, hardly limits itself by just making smartphones – it also produces anything from batteries, through flash memory, down to semiconductors. And yet, when we saw the latest numbers from Sammy's regulatory filings in its homeland, our minds were absolutely blown at the scale at which the electronics giant's marketing department continues to operate.

It's interesting to note that the company has, in a first, changed its marketing approach and has re-directed the river of cash from advertising to sales promotions like rebates, coupons and other incentives. For just the two first quarters of 2013, Samsung Electronics spent a whopping 934 billion won ($888 million) on sales promotions, up 38.7% from a year earlier, and another 1.71 trillion won ($661 million, down 60%) on advertising in its home country of South Korea alone.

Samsung's spending on such promotions overseas has also spiked sharply this year, with an increase from 2.37 trillion won ($2.2 billion) last year, to 4.89 trillion won ($4.6 billion) in 2013.

In other words, it's quite likely that Samsung will top Apple's marketing spending for a second year in a row, and that's not overly surprising, considering the sheer amount of cash that's being thrown around. There's obviously nothing wrong with Samsung spending its piles of cash in any way it feels appropriate, yet these figures do showcase just how hard it is for smaller manufacturers to actually compete.

source: Yonhapnews via G4Games

33 Comments
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posted on 17 Dec 2013, 08:23 12

1. ihavenoname (Posts: 1191; Member since: 18 Aug 2013)


DAMN that is much. But great products=sells well=money=ads=more sales=money=better development=even better products, so well done!

posted on 17 Dec 2013, 08:35 8

2. giani (Posts: 269; Member since: 13 Nov 2012)


All those students...could this be an explanation for all those brained washed people ?!

posted on 18 Dec 2013, 03:39

32. chocolaking (Posts: 428; Member since: 22 May 2012)


Your money goes to advertisement .
Your money does not go to R&D
You are just helping the company growing
who ever bought samdung is just being trapped in the system...

posted on 17 Dec 2013, 08:55 4

7. SuperAndroidEvo (Posts: 3723; Member since: 15 Apr 2011)


Samsung is like the NY Yankees of the mobile world. They take their earnings & heavily invest in themselves so they can in turn make the higher profit.

Kinda sounds like Verizon Wireless to me also....

+1

posted on 17 Dec 2013, 11:13

17. lifeyourlive (Posts: 126; Member since: 23 Aug 2013)


Too bad this doesnt apply for samsung :D but still nice equation

posted on 17 Dec 2013, 11:19 2

20. DEATHSTROKE9 (Posts: 347; Member since: 09 Nov 2013)


I disagree. It's a shame that they chose to spend so much on advertising Instead of spending on the build quality of their devices.

posted on 17 Dec 2013, 11:42 5

21. Sauce (unregistered)


You act like their build quality is horrendous, just like the rest of the haters who use this teamed up insult to belittle Samsung's Galaxy series. As an iPhone user speaking, I can say that their build quality is where it should be at, and it quite nice if you ask me. Sleek. Sexy. Superb. It feels great in the hand, and is quite sturdy as well. If you're looking for something with outstanding build quality, maybe you should invest your time into buying one of those old yellow/black Motorola brick phone's that construction workers use.

posted on 17 Dec 2013, 12:11 2

23. ihavenoname (Posts: 1191; Member since: 18 Aug 2013)


Samsung quality has been good enough since S4.

posted on 17 Dec 2013, 17:03 1

28. applesucker (Posts: 81; Member since: 29 Oct 2013)


their quality is better than apple because every time i visited different carriers and every time i looked at the iphones all of them you can already see all the factory defects such as scratch and dents fresh from the box, lean outward screen (mostly on top part) faulty battery

posted on 17 Dec 2013, 08:36 1

3. rallyguy (Posts: 516; Member since: 13 Mar 2012)


No small company ever has an easy time getting into a market with high profits or else everyone would be doing it. The Chinese companies have the help of the Chinese government to help fund and promote their product in China to start a base. A hudge advantage most companies don't get. Thank you for not criticizing the amount of money spent. Like you said, it's their money.

posted on 17 Dec 2013, 08:42 5

4. xperiaDROID (Posts: 5042; Member since: 08 Mar 2013)


Samsung knows how to advertise their phones properly, they advertise it on TV and billboards and that's why they are earning a lot of money. While HTC didn't advertise their phones, but what's surprising is that I saw the first billboard showing the One Mini, One, and the One Max together in one big picture at the highway and that makes me happy, I don't know why. lol

posted on 17 Dec 2013, 09:20 5

12. ArtSim98 (Posts: 2042; Member since: 21 Dec 2012)


I also get a happy feeling if I see adverts from some electronics OEM's other than Samsung or Apple lol.

posted on 17 Dec 2013, 22:12

31. joey_sfb (Posts: 2452; Member since: 29 Mar 2012)


I am happy when Samsung throw in freebie with my purchases. This time they give me a free battery with stand alone charger and a dock.

Samsung please consider giving pre-order owners of Galaxy S5, AllShare Cast dougle for big screen mirroring.

posted on 17 Dec 2013, 08:43

5. jaytai0106 (Posts: 1142; Member since: 30 Mar 2011)


I think they should just make a good product, sell it cheap, and cut all the advertisements. This way they will sell more units because it will be more affordable for more people.

posted on 17 Dec 2013, 09:11

11. _Bone_ (Posts: 2099; Member since: 29 Oct 2012)


Google makes good products, sells them cheap and cuts all the advertisement, and makes zero profits off it's consumer gadgets.

On the corporal level it's spend more to earn more, think Avatar and the half billion dollars that was spent on it from 3D R&D to studio construction, shooting & pp to the filthy amount of dollars burnt on the hype. Some even claim the final tally is a full billion.

It made 3.

posted on 17 Dec 2013, 11:42

22. jaytai0106 (Posts: 1142; Member since: 30 Mar 2011)


Not trying to be anal but Google doesn't make any device. They do partner with manufacturers to make cheap devices. I have the Nexus 4 and I love it :D

posted on 17 Dec 2013, 13:57

25. phonetekmek (Posts: 65; Member since: 04 Oct 2013)


Not so fast my friend. Google now owns Motorola, Motorola makes devices. Motorola X & G are both made under the control of Google. And I'm sure this is just the beginning.

posted on 17 Dec 2013, 16:53 1

26. kryme (Posts: 124; Member since: 24 Oct 2013)


google is different.... google dont make money from devices so it would make no sense to advertise..... google is like a pimp... samsung lg htc sony work for google... haha

posted on 18 Dec 2013, 08:04

33. jaytai0106 (Posts: 1142; Member since: 30 Mar 2011)


Google owns Motorola Mobile but they still don't make phone directly. They don't design, they don't produce. But Moto X is a pretty good phone with a stiff price tag :/ Nexus 4 & 5 are good phones with great price tag, my friend :D

posted on 17 Dec 2013, 08:46

6. zuckerboy (Posts: 874; Member since: 22 Dec 2011)


but still they havent sold 100 mils s4....

posted on 17 Dec 2013, 09:02 4

8. _Bone_ (Posts: 2099; Member since: 29 Oct 2012)


True, but that's just one of the hundreds of products they've released and promoted this year, most of them not even being mobiles. And the mobile division alone sold about 300.000.000 units, so ad money was well spent.

posted on 17 Dec 2013, 10:27 1

14. PBXtech (Posts: 966; Member since: 21 Oct 2013)


Not even Apple has sold a 100 million units of an individual model. The 5 got close at 89 million, but it's discontinued.

posted on 17 Dec 2013, 09:07 1

9. mr.techdude (Posts: 529; Member since: 19 Nov 2012)


DAMMNNNN, that's like 4 times bigger then what HTC makes on profits alone.

posted on 17 Dec 2013, 09:09 1

10. ArtSim98 (Posts: 2042; Member since: 21 Dec 2012)


No wonder they sell well. It's not ONLY the product. It's about everything around it.

posted on 17 Dec 2013, 16:58

27. kryme (Posts: 124; Member since: 24 Oct 2013)


finally someone who understand.... even if u have a very high premium phone without good marketing it will fall flat.... for the year of 2013 no phone sell as much as the s4... and the s5 is coming in the next 3 to 4 months

posted on 17 Dec 2013, 09:27 1

13. nasznjoka (Posts: 259; Member since: 05 Oct 2012)


They get more so let them spend it. Can NOKIA do the same?? Their annual sales are less than 2 quarter sales of a single flagship from sammy

posted on 17 Dec 2013, 10:43 1

15. xq10xa (Posts: 114; Member since: 07 Dec 2010)


I don't think they have that kind of money anymore. If just their commercials were a little better....they really need to get some young people into the marketing team...or someone that better understands how to sell the phone. Those Windows 8 commercials pushing the Lumia's and Tablets are so sad. The "I WANNA SEE YOU BE FREEEEEE" commercials. So sad. I just can't believe a company of that caliber throws that out.

posted on 17 Dec 2013, 11:14

18. nasznjoka (Posts: 259; Member since: 05 Oct 2012)


yeah and its funny

posted on 17 Dec 2013, 11:12

16. JakeLee (Posts: 403; Member since: 02 Nov 2013)


This again.
And I have to ask again as well : Is the amount Sammy paid to commenters and reviewers included in that number?

posted on 17 Dec 2013, 11:17

19. nasznjoka (Posts: 259; Member since: 05 Oct 2012)


you can bet. The thing is these devices from Samsung have become mainstream such that every reviewer gotta say it. The same as iphones

posted on 17 Dec 2013, 13:57

24. jacko1977 (Posts: 382; Member since: 11 Feb 2012)


still half what apple pays iphonearena

posted on 17 Dec 2013, 17:06

29. applesucker (Posts: 81; Member since: 29 Oct 2013)


plastic build doesn't mean low quality in fact more companies prefer polycarbonate over aluminum in building high quality products

posted on 17 Dec 2013, 19:42

30. Stuntman (Posts: 699; Member since: 01 Aug 2011)


This is why Samsung is dominating the Android market.

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