Samsung to cut back on advertising for mobile related products

You might not see as much advertising for Samsung's next-generation smartphones, at least not when compared to previous years. On Friday, Samsung announced that it will lower the percentage of revenue that the Korean tech titan spends on advertising. The company just announced its fourth quarter earnings report and for the first time in two years, profits were lower. Some of the blame for the decline is apparently being placed on Sammy's high marketing costs.

Senior Vice President Kim Hyunjoon told analysts in a conference call after the earnings report, that the company will be reducing its mobile marketing budget this year. Still, the company does plan on spending to promote its mobile devices during the Winter Olympics in Sochi. At the Winter games, each athlete will receive a free Samsung Galaxy Note 3 courtesy of the Korean manufacturer. 

While lowering the amount it will spend on advertising, Samsung hopes to stretch each dollar spent by making its marketing spend more efficient. This could be a risky strategy for Samsung if one of its rivals were to go all in with a massive ad campaign.


source: Reuters

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