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

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

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33 Comments

30. Stuntman

Posts: 843; Member since: Aug 01, 2011

This is why Samsung is dominating the Android market.

29. applesucker

Posts: 81; Member since: Oct 29, 2013

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

24. jacko1977

Posts: 428; Member since: Feb 11, 2012

still half what apple pays iphonearena

16. JakeLee

Posts: 1021; Member since: Nov 02, 2013

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

19. nasznjoka

Posts: 418; Member since: Oct 05, 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

13. nasznjoka

Posts: 418; Member since: Oct 05, 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

15. xq10xa

Posts: 810; Member since: Dec 07, 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.

18. nasznjoka

Posts: 418; Member since: Oct 05, 2012

yeah and its funny

10. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

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

27. kryme

Posts: 469; Member since: Oct 24, 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

9. mr.techdude

Posts: 571; Member since: Nov 19, 2012

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

6. zuckerboy

Posts: 898; Member since: Dec 22, 2011

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

8. _Bone_

Posts: 2155; Member since: Oct 29, 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.

14. PBXtech

Posts: 1032; Member since: Oct 21, 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.

5. jaytai0106

Posts: 1888; Member since: Mar 30, 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.

11. _Bone_

Posts: 2155; Member since: Oct 29, 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.

22. jaytai0106

Posts: 1888; Member since: Mar 30, 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

25. phonetekmek

Posts: 70; Member since: Oct 04, 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.

26. kryme

Posts: 469; Member since: Oct 24, 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

33. jaytai0106

Posts: 1888; Member since: Mar 30, 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

4. xperiaDROID

Posts: 5629; Member since: Mar 08, 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

12. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

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

31. joey_sfb

Posts: 6794; Member since: Mar 29, 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.

3. rallyguy

Posts: 620; Member since: Mar 13, 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.

1. ihavenoname

Posts: 1693; Member since: Aug 18, 2013

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

2. giani

Posts: 269; Member since: Nov 13, 2012

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

32. chocolaking

Posts: 495; Member since: May 22, 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...

7. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 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

17. lifeyourlive

Posts: 126; Member since: Aug 23, 2013

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

20. DEATHSTROKE9

Posts: 399; Member since: Nov 09, 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.

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