Samsung raises its marketing budget with sights set on Apple

Samsung raises its marketing budget with sights set on Apple
We recently told you that Samsung outspends HTC in marketing dollars by a hefty 10 to 1 margin. But the Korean based manufacturer is not slowing down spending in order to allow HTC, or any other OEM for that matter, to catch up. According to information from industry publication Ad Age, Samsung's spending for ads in the U.S. rose 58% last year to $881 million. Most of that money was spent on ads for the Samsung Galaxy devices.

What makes Samsung's spending on marketing so amazing is that the top 100 advertisers in the states averaged a paltry 2.8% gain in ad spending in 2012. While overall Apple outspent Samsung by purchasing $1 billion of U.S. based ads in 2012, on a percentage basis Samsung had the largest growth among the nation's top advertisers. With the Samsung Galaxy S4 already launched and the Samsung Galaxy Note III on the way, will Samsung outspend Apple in 2013?

Among the top percentage gainers last year was the nation's fourth largest carrier, T-Mobile. Last year, T-Mobile spent $1.1 billion on ads in the U.S. which was a 27% gain from the prior year.

Samsung had the largest percentage gain in U.S. marketing spending in 2012

Samsung had the largest percentage gain in U.S. marketing spending in 2012


source: Forbes

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13 Comments

1. InspectorGadget80 unregistered

Can't wait too see what other ads Samsung have in store for Apple. the Graduation one was the funniest. but i like the ones waiting in line at the Apple Store

2. Topcat488

Posts: 1409; Member since: Sep 29, 2012

Ads are like a "bad song" on the radio... if you hear it long enough, and often enough, you'll start to like it. I guess you have to pay to play, and that means money well spent.

3. procol

Posts: 16; Member since: Feb 28, 2013

If you can get used to the song and like it eventually, it means it was not that bad song after all. There are tons of songs out there you can't love in the end no matter how hard you try to. On the contrary, there are songs you liked at first, but lose interest quickly. Moreover, some songs sounds better with time elapsing. I guess this is same with products. Only good quality products can get benefits from ads in long term view. You can't sell some sub-par products well for long even with the heavy supports from ads.

5. ardent1

Posts: 2000; Member since: Apr 16, 2011

I like how iOS 7.0 with airdrop will eliminate the low-brow dance that samsung users do, i.e. get up to meet halfway across the room, just to physically tap their handsets. That has got to be one of the dumbest features on Samsung's phone (why have wireless devices in the first place? hmm?!). Even in Japan, they have been using IR technology for a long time to exchange data between handsets and negate the need for the low-brow, Samsung dance.

6. rawbow

Posts: 428; Member since: Mar 30, 2012

samsung nfc is just an option, your "yet to be introduced airdrop" is called samsung group play and their is all share. So dunno where you are getting at

4. ardent1

Posts: 2000; Member since: Apr 16, 2011

In business, raising marketing spend is typically a bad sign -- a sign the products aren't good enough to sell themselves. Separately, is there any linkage to the drop in Samsung stock price? You know Samsung is going to have a hard time is when LG produces a comparable spec'ed phone to the S3 and the price of the LG phone is currently priced $100 less than the S3, respectively (you can verify this at boostmobile.com). At Virgin Mobile, practically all the Samsung devices (except the recent new models) are being discounted by large amounts. The moral of these observerations, Samsung may try to fool people into paying more their devices, but at the end of the day, people aren't being fooled. As a general comment, Samsung android devices are overpriced versus comparable android spec'd phones and the data for the past say 12-18 months support this. That helps explain the drop in stock price and the need for Samsung to increase marketing spend.

8. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Nevertheless I enjoy Samsung ad better. Apple Ad is rather generic these days just like their products.

10. Jason2k13

Posts: 1440; Member since: Mar 28, 2013

Now why would LG keep the same price as the S3, if it is not selling well? The smart thing to do is to lower the price, your only fooling yourself buddy with your fanboy talk. If i were to buy an LG phone or any other brands I would lose samsungs unique features, the super amoled HD screen, software support and probably SD card and removable battery to. If i were to spend big money on any phones with similar price, i would chose the phone with more features because i don't want to pay the same price on something that offers less.

13. xoatomxo

Posts: 57; Member since: Apr 26, 2011

@Jason2k13 I completely agree with you.

11. Taters

Posts: 6474; Member since: Jan 28, 2013

Who decides what is overpriced or not? You? lol I wouldn't call any Samsung overpriced or you might look like an idiot. One of the sole reasons that they are popular is because their stuff is cheap. Especially the TVs.

7. Taters

Posts: 6474; Member since: Jan 28, 2013

So does this mean that the haters can shut up and stop pretending that they are marketing geniuses now? Once this increase takes place and Samsung stock continues to drop, then the haters, and HTC, will finally stop complaining that they are out marketed and actually concentrate on making a product that people want to buy.

9. wk10k

Posts: 9; Member since: Aug 06, 2012

this ardent1 is fukcing idiot. First off, no "comparable spec'd" phone costs less than the 650$ S4 Who cares about the S3...NOBODY!!!! and .... boost mobile? virgin mobile? LMFAO !

12. androidfanboy

Posts: 162; Member since: Jun 24, 2013

shut the fuk up the galaxy s3 is still a good phone

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