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Samsung to cut back on advertising for mobile related products

Posted: , by Alan F.


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.

"We'll actively leverage global sports events such as the Sochi (Winter) Olympics and our retail channels... but we will try to raise the efficiency of our marketing spend and lower our overall mobile marketing budget to revenue this year compared with last year."- Kim Hyunjoon, Senior Vice President, Samsung

source: Reuters

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posted on 24 Jan 2014, 00:40

1. SandraB (banned) (Posts: 75; Member since: 07 Aug 2013)

How much have Samsung pay to microsoft for using the Linux-based Android?

No wonder really if the Chinese and Indian Governments will allow a deal between Nokia and Microsoft? Huawee and Microsomax will have it really hard aginst microsoft

Then the risk of hitting the entire industry when microsoft will have a senseless cones tage

posted on 24 Jan 2014, 00:42 2

2. galanoth (Posts: 330; Member since: 26 Nov 2011)

Samsung cutting their marketing budget. If Samsung still sells more phones than the other OEMs I wonder if people will still blame Samsung's success on marketing.

posted on 24 Jan 2014, 00:57 6

3. Feanor (Posts: 317; Member since: 20 Jun 2012)

It's not so straightforward. If Samsung now cuts on marketing costs, it will still have the advantage of the brand recognition that it gained with with previous marketing campaigns. And brand recognition is what marketing is all about, much more than advertising just a single product. Once you become a famous brand, everyone knows what you produce, even without explicitly advertising it.

posted on 24 Jan 2014, 04:54

9. superduper (Posts: 151; Member since: 20 Oct 2013)

If, by brand recognition, you mean those weird, unintelligible Galaxy ads. Or those ads where they mock users of other brands in the hope of winning their loyalty. Because that's not the kind of brand recognition any company would want.

posted on 24 Jan 2014, 08:10

12. itsdeepak4u2000 (Posts: 2767; Member since: 03 Nov 2012)

e.g. Nokia

posted on 24 Jan 2014, 01:06 1

4. istitch (Posts: 170; Member since: 19 Mar 2013)

im glad i need not to see samsung phone ALL OVER PLACE, internet, TV, billboards, train stations, bus stops, radios, and in the malls

posted on 24 Jan 2014, 02:42 2

5. Bozzor (Posts: 140; Member since: 02 May 2012)

Samsung will indeed get the fallout from last years utterly insane marketing spend - $14 billion for 2013. But marketing is a strange business: whilst people won't forget your name, they may de-prioritize it if not reminded constantly.

posted on 24 Jan 2014, 03:09

6. AfterShock (Posts: 2862; Member since: 02 Nov 2012)

Good post.

posted on 24 Jan 2014, 04:10

8. Taters (Posts: 3460; Member since: 28 Jan 2013)

They are cutting back marketing because they know that they don't really need it to beat down HTC, Sony, and Nokia. Which effectively destroys those really weak theories about Samsung selling Galaxy phones over garbage Nokia, HTC, and Sony phones strictly because of marketing.

posted on 24 Jan 2014, 06:14 1

10. emadshiny (Posts: 1142; Member since: 05 Dec 2012)

From your post, I could understand that you know nothing from technology as you call Nokia, Sony and HTC products as garbage.

posted on 24 Jan 2014, 07:36

11. QWIKSTRIKE (Posts: 903; Member since: 09 Mar 2010)

They need to cut back on imitation knock off of their top tier phones like the Note lite vs the Note 3. Their strategy to flood the market with all kinds of cheap phones waters down their brand in my opinion.

posted on 24 Jan 2014, 11:30 1

13. kryme (Posts: 142; Member since: 24 Oct 2013)

yall need to read between the lines... samsung is gonna be spending aalot more time on tizen.....

posted on 24 Jan 2014, 17:34 1

14. Vanster (Posts: 124; Member since: 15 Jan 2014)

yeah i think sammy buy it smartphones their self to make their smartphone sold, haha so they lost many profit

posted on 24 Jan 2014, 17:34

15. Vanster (Posts: 124; Member since: 15 Jan 2014)

yeah i think sammy buy it smartphones their self to make their smartphone sold out, haha so they lost many profit

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