Marketing was the 'main reason' for Samsung success last year: here is the mind-boggling amount it spent

Marketing was the 'main reason' for Samsung success last year: here is the mind-boggling amount it spent
There are three huge things that happened in mobile in the past few years. First, Apple changed our perception of a smartphone with the launch of the iPhone in 2007, then Nokia could not react in time and lost its long-held leading position, and third Samsung started growing like a snowball. Fast forward to today, and Samsung is the world’s biggest smartphone and overall phone manufacturer, a hugely profitable company driven by booming sales of its Galaxy S and Note flagship lineups.

But it is not just the devices - marketing has an equally important role in Samsung’s success as the company spent a mind-boggling $11 billion on marketing, nearly ten times more than it spent on R&D in 2012 (it was $1.06 billion for R&D).

All of that spending came despite the ‘thermonucleal’ legal war going on when Samsung knew it could suffer financially if Apple won.

“Samsung’s focus on marketing was the main reason the company was so successful last year,” an anonymous source inside Samsung said.

Moreover, this marketing warfare is not likely to stop as long as the Galaxy device continue selling well. “With its strategic Galaxy S3 and Galaxy Note smartphones selling tens of millions, the company doesn’t care too much about allocating a gigantic marketing budget," the Samsung source added.

source: Korea Times

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42 Comments

1. VJo003

Posts: 365; Member since: Mar 11, 2012

Mind boggling is right 11 Billion Wow

8. hung2900

Posts: 966; Member since: Mar 02, 2012

11 billion in marketing but about a large amount of money is for discounting. I don't say it's intelligent, but it's smart. And I have no idea where Phonearena found the infomation of "Samsung spent $1.06 billion for R&D in 2012"http://www.dailytech.com/Samsung+to+Invest+42B+USD+in+2012++Mostly+on+Chipmaking+OLED+TVs/article23796.htm

16. AFnerdTP unregistered

maybe 1.06 only for Samsung Mobile.. wait nm.. your article says 6 in comparison to apple... so... wth...

26. WirelessCon

Posts: 311; Member since: May 11, 2010

Yeah, Phonearena just copies and pastes, they don't research, double check or vet their sources.

9. GALAXY-STORM

Posts: 328; Member since: Oct 13, 2012

Samsung is smart, clever and brutal when it comes to marketing their products.

2. schinnak

Posts: 116; Member since: Oct 26, 2011

Loved the DP put up by PA for this article

3. _Bone_

Posts: 2155; Member since: Oct 29, 2012

Damn, that'd some serious dough. But being the main sponsor of the Olympics wasn't going to be cheap (not to mention the thousands and thousands of S3s handed out to all participants), but in the end, ironically, Apple's lawsuit generated the most attention and Samsung mentions. At the end of the day, 2012 in the news generated so much attention for Samsung that they could stay no1 without spending a dime on marketing this year, there's so much user and service provider demand, but they'll continue to advertise the crap out of their stuff which separates them from say HTC, a superb company with not so superb PR staff.

4. InspectorGadget80 unregistered

Marketing is the key of success

5. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 2011

meanwhile in Africa

6. timtimity

Posts: 196; Member since: Aug 13, 2012

I guess the Olympics cost Samsung a lot, but I'm still surprised by the difference in amount spent. I occasionally see Samsung adverts on TV but I see a lot more Apple adverts. However, I see more print adverts for Samsung than Apple.

7. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

11 billions spent to market their Android smart phone, Google should be happy to have Samsung onboard. Google please do not bad mouth Samsung they have earned every cent from Android. While the fruit brand is keeping every cent in it's own piggy bank. Enriching only a few top executives.

10. Hemlocke unregistered

It's all marketing hype." Now where have I heard that used... They outspent Apple in marketing by ~ 5 times, and they spent less on R&D for their smartphones.

14. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

That's what partners is for, the low level OS functionilty is done by Google, and so far i am impress. Android is getting more and more powerful while stable. Compare to earlier build like 1.5, 1.6 Android don't even have bluetooth file transfer while my symbian has it. Not impress. i never own Android device till Android 2.2/2.3. Might be a blessing.

35. ph00ny

Posts: 2031; Member since: May 26, 2011

I highly doubt the R&D figure listed above. iirc, samsung is up there with drug manufacturers in terms of r&d spending

11. GALAXY-STORM

Posts: 328; Member since: Oct 13, 2012

Phonearena can you please tell us how much you own from samsung ads...plz. You should be pretty rich by now :/s

12. pwnarena

Posts: 1129; Member since: Feb 15, 2013

not purely marketing. they also created good products despite the arguably ugly designs. i prefer sony or htc but i can't deny that samsung introduced good flagships after they attracted attention for being iphone copycats.

13. LionStone

Posts: 1048; Member since: Dec 10, 2010

“Samsung’s focus on marketing was the main reason the company was so successful last year,” an anonymous source inside Samsung said. Yes, we knew that.

15. BadAssAbe

Posts: 507; Member since: Apr 22, 2011

You can tell me all you want how much your Poop don't stink but there is no way i'm gonna take a sniff. Marketing Helps but only if you have something worth Marketing. I'm Gonna assume Samsung Success was mostly based on its Good Design, Thin, Lightweight, High Specs Great Exnos processors AMOLED Screens

31. beefalo

Posts: 16; Member since: Nov 10, 2011

Mostly agree with you, although most normal consumers don't care about specs or the processor. I think Samsung did a good job getting carriers to push their S3 as it has a nice large screen, very thin and light, expandable storage, and thin bezels(keeps the phone relatively compact compared to say if apple had a 4.8" phone). I disagree on the AMOLED screen part though, they do not perform as well in sunlight, and although consumers don't know about pentile, they should be able to see that it isn't as crisp as other screens.

17. jroc74

Posts: 6023; Member since: Dec 30, 2010

Wow...now I feel like an Apple fan... It wasnt ...just...marketing. They had good phones. Nice specs, features, a nice overall experience. They try to cover all the bases as far as specs and features too. And they went after the low end and mid range crowd with decent phones.

18. jan25

Posts: 470; Member since: Feb 26, 2012

No, memory expansion and removable batteries are the secret of its success /sarcasm

19. Stuntman

Posts: 843; Member since: Aug 01, 2011

It also helps to have a great product. I'm very impressed with the SGS3. I always thought that Apple's success was due to marketing. For years, I have felt really bombarded Apple ads.

20. b1acktiger

Posts: 223; Member since: May 19, 2012

No wonder ! I can see "Samsung" everywhere. TV, Billboards,Internet..i dont know where ever they put their advt.

21. Aeires unregistered

Gotta love those Superbowl rates! /j

37. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Advertising industries should love Samsung!! I am happy the dough could be spread out more evenly putting more food on the table for more individual vs hogging to all those money that benefit no one!!

22. XPERIA-KNIGHT unregistered

We're slowly turning into "samsungphone arena" ......beware fans of other companies

23. ngo2dd

Posts: 896; Member since: Jul 08, 2011

For all the people who say it is not just marketing and Samsung made a great better then the rest. The US phone where their best selling model. The most ofbthe S2 model were using the same tech as everyone else. The processors was the snapdragon S3. The S3 was using the S4. People were in fact not buying it for the 'great' headware. If marketing not important then why would they spend 12 billion. Great hardware is only important to the small minority on this tech site and other.

24. Taters

Posts: 6474; Member since: Jan 28, 2013

Heh heh I can see the typical butthurt haters are here. Anyways, 11 billion is a lot. They should just use that on R&D and make the GS4 100 times better than the HTC One instead of the 20 times better it will be.

27. techspace

Posts: 1037; Member since: Sep 03, 2012

now they spend more than any other company in the world on research and development.........if they spend 11 billion only to make an s4, then even if it becomes the most popular smartphone in the world, they wouldn't earn much from it, because many people wouldn't buy it without marketing and also because when they sell millions of phones and earn 11 billion, the actual profit will be $0......they spend billions on r and d but its not spent only for the s4, they have many other products

39. ngo2dd

Posts: 896; Member since: Jul 08, 2011

No you are just a blind fanboy. I been n say a large reason why Samsung doing so well was their market and you said I had no proof. Here is it. 11 billion. No other company beside apple have this kind of money.

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