As is the case with any other consumer market, advertising plays a big role in the success of a product, or a company. That’s the main reason why LG has actually spent so much money on marketing the G2. But, speaking of Korean smartphone manufacturers, we’ve just received word on how Samsung handled its marketing expenses this year. The sums are huge, and the expenses are much higher than they were last year.
Evidently, Samsung intends on remaining on top, and with the competition becoming fiercer with each passing quarter, Sammy needs to remain in the spotlight. Check back after the break as we’ll talk about these mind-boggling figures.
Samsung Sets New Record on marketing Expenses
According to the Korean media, Samsung has managed to set new records in marketing costs, by increasing the sales promotion budget by 38.7% from last year. In Korea, Samsung spent 934 billion won (roughly US$889 million) on sales promotions alone, during the first three quarters of the year. Interestingly enough, the company cut the investments in advertisement from last year’s 1.71 trillion won (roughly US$1.63 billion), down to 695 billion won (US$661 million).
In other words, Samsung has tweaked the way it spends its money on marketing, and decided to invest “a bit” more in sales promotions (such as rebates, promotional coupons and other incentives), rather than investing in advertisement.
Sources also suggest that Samsung’s sales promotions outside of South Korea have reached 4.89 trillion won (US$4.65 billion) in the first three quarters of the year. This sum represents a huge increase from the 2.37 trillion won (US$225 billion) spent last year.
We should also mention the fact that Samsung has overtaken Apple in the US. When it comes to 2012 advertisement costs directed towards TV and Internet ads, prints and billboards, Samsung finished first with $401 million spent, whereas Apple ranked second with costs of $333 million. HTC ended up on a distand third place, with a “mere” $36 million spent in advertising.