Samsung spent $68M more than Apple on 2012 phone ads, increased budget fivefold
According to new research released on Tuesday, Samsung spent a whopping $401 million on U.S. print, television, billboards and internet advertisements in 2012, leapfrogging past HTC and its biggest rival Apple, which in 2011 outspent the Korean firm more than three to one.
Data from advertising research and consulting firm Kantar Media shows that Samsung boosted U.S. ad spending by some $323 million between 2011 to 2012, while second-biggest spender Apple's budget went from $253 million to $333 million over the same period, reports The Wall Street Journal.
In contrast to Samsung and Apple, third place HTC slashed spending to $46 million, down from $124 million in 2011. Rounding out the top five were BlackBerry and Nokia, which also cut their budgets last year.
Source: The Wall Street Journal
Despite Samsung's incredible influx of ad money, aimed at promoting handsets like the Galaxy S III, the company took second place to Apple's iPhone as America's most effective mobile phone brand, said advertising analytics firm Ace Metrix in January. Interestingly, Ace went on to name the Korean tech giant as the overall top technology brand of 2012.
The Galaxy maker is perhaps most well known for "The Next Big Thing is Already Here" campaign, which constantly ribbed iPhone users as hapless followers, and Samsung doesn't appear to be letting up, as the company's Super Bowl TV spot from February poked fun at Apple's ongoing worldwide patent litigation.
The WSJ said advertising is but one of the many investments Samsung is making to ensure that it retains its lead in the global smartphone market, which is now largely a two horse race against Apple. As noted by the publication, executives from cellular providers claim Samsung spends the most money on "below the line" marketing such as in-store advertising and promotions.
As for 2013, the Korean company will likely continue its less than frugal advertising blitz with the upcoming Galaxy S4 launch, which is expected to take place on Thursday at Radio City Music Hall in New York City.
Data from advertising research and consulting firm Kantar Media shows that Samsung boosted U.S. ad spending by some $323 million between 2011 to 2012, while second-biggest spender Apple's budget went from $253 million to $333 million over the same period, reports The Wall Street Journal.
In contrast to Samsung and Apple, third place HTC slashed spending to $46 million, down from $124 million in 2011. Rounding out the top five were BlackBerry and Nokia, which also cut their budgets last year.
Source: The Wall Street Journal
Despite Samsung's incredible influx of ad money, aimed at promoting handsets like the Galaxy S III, the company took second place to Apple's iPhone as America's most effective mobile phone brand, said advertising analytics firm Ace Metrix in January. Interestingly, Ace went on to name the Korean tech giant as the overall top technology brand of 2012.
The Galaxy maker is perhaps most well known for "The Next Big Thing is Already Here" campaign, which constantly ribbed iPhone users as hapless followers, and Samsung doesn't appear to be letting up, as the company's Super Bowl TV spot from February poked fun at Apple's ongoing worldwide patent litigation.
The WSJ said advertising is but one of the many investments Samsung is making to ensure that it retains its lead in the global smartphone market, which is now largely a two horse race against Apple. As noted by the publication, executives from cellular providers claim Samsung spends the most money on "below the line" marketing such as in-store advertising and promotions.
As for 2013, the Korean company will likely continue its less than frugal advertising blitz with the upcoming Galaxy S4 launch, which is expected to take place on Thursday at Radio City Music Hall in New York City.
Comments
Seems to be working well for them, they use new media really well too.
I don't buy Apple because the commercials are entertaining. It's the quality of the designs.
Here's one person who is sick of their 24/7 advertising in the USA. Unfortunately it will only get worse when the S4 is announced. Sigh.
So Apple spent $333 million? Apparently not in my neck of the woods. The airwaves are void of any Apple advertising in the Midwest. Only an iPad ad now and then and the carrier ads always feature Samsung products. I don't see any Apple ads in magazines, on billboards, in newspapers, on the radio, anywhere. Meanwhile Samsung is plastered everywhere you look. So much for Apple's vaunted marketing reputation.
Quote:
Originally Posted by PhilBoogie
I guess some companies have to work harder in order to sell. Other companies just let the quality of their products speak for itself.
Then why did Apple outspend Samsung by such a large margin in the prior years?
Samsung looked at what Apple was doing that worked, then turned the knob up to 11.
Sadly advertising does work for most though (not just in consumer goods either as we know!). Case in point ... A friend of my wife's was saying the other night that she was unhappy with her iPhone because it couldn't do what a Scamsung phone could do (seen on advert on TV). I asked her what specifically she was wanting to do. She says ... 'you know where you touch someone else phone and they sync.' I asked her what she would sync? She answers, 'I don't know but my iPhone can't do it.'
According to your data the entire article is incorrect. I must be missing something.
I agree. I'm amazed that the difference is as small as it is. I see Samsung ads all the time and not that many iPhone ads.
The only ads I see are on the internet, but then again, I don't watch TV.
Hmm, maybe because Apple is allowed to sell every single product they make in the US, whereas Samsung isn't allowed on supposed IP infringement, would that be correct, and a reason?
As I understand it, that is their MO, if the posts here are anything to go by. Personally I think a more admirable thing to do is to create your own products and turn up that knob.
Quote:
Originally Posted by digitalclips
According to your data the entire article is incorrect. I must be missing something.
Not my data. It's also from Kantar. You're missing that this chart is only half year totals.
Quote:
Originally Posted by PhilBoogie
Hmm, maybe because Apple is allowed to sell every single product they make in the US, whereas Samsung isn't allowed on supposed IP infringement, would that be correct, and a reason?
What product was not allowed? And how would that increase advertising costs?
Look, you claimed that Apple didn't have to advertise. The fact is, they advertised far more in the US than Samsung until around mid 2012, when Samsung decided to invest heavily in ads as well.
Personally I think a more admirable thing to do is to create your own products and turn up that knob.
Judging from the yearly sales data, Samsung became successful after they differentiated their products away from Apple and the other vendors, through features and advertising.
I remember a tablet, but don't know if that is still the case and certainly don't know the name. They have so many, and I think they use part of the name for smartphone and tablets as well and I get confused.
But that is 'new territory' for them, no?
That's a good thing, and will make them stand out from the crowd.
Quote:
Originally Posted by digitalclips
Sadly advertising does work for most though (not just in consumer goods either as we know!). Case in point ... A friend of my wife's was saying the other night that she was unhappy with her iPhone because it couldn't do what a Scamsung phone could do (seen on advert on TV). I asked her what specifically she was wanting to do. She says ... 'you know where you touch someone else phone and they sync.' I asked her what she would sync? She answers, 'I don't know but my iPhone can't do it.'
This is where advertising works, on the 'Swing Voter' consumers, which i think makes up for most people out there.
Which is a big reason all companies need to step up their games on new product releases, people don't have the same brand loyalty that they used to (apparently).
Did you know that you wanted a iPhone before it existed? People will always prefer the ability to do something and not use it than never having the option.
Quote:
Originally Posted by jragosta
I agree. I'm amazed that the difference is as small as it is. I see Samsung ads all the time and not that many iPhone ads.
All I can hope for (and yes I know I'm dreaming here) is the tech media finally holding Samsung to the high expectations they hold everyone else. My fear though is Samsung will put on the razzle dazzle for the S4 launch and the media will eat it up declaring it the best phone ever. Even if there's not much behind the hype other than gimmicks eye tracking stuff.
They only made the Tab back then, so that's how much you don't know, and it was already being replaced when it got banned.
Quote:
Originally Posted by Rogifan
All I can hope for (and yes I know I'm dreaming here) is the tech media finally holding Samsung to the high expectations they hold everyone else. My fear though is Samsung will put on the razzle dazzle for the S4 launch and the media will eat it up declaring it the best phone ever. Even if there's not much behind the hype other than gimmicks eye tracking stuff.
The media is putting Samsung on Apple level where it doesn't deserve to be at. Samsung is getting too ahead of itself if they think they can create all this hype and then not deliver on it. The fun thing about Apple rumors and hype leading up to Apple press conference is that you don't know what Apple going to show and that the fun part about it. Now I think Samsung is trying to duplicate Apple press conference with their "Samsung's Global Unpacked Event". The hype is there for Samsung but it not like Apple hype.
They just need to out-hype Motorola, HTC, LG, etc..., and that's exactly what they've been doing.
Quote:
Originally Posted by TonyLee
The media is putting Samsung on Apple level where it doesn't deserve to be at. Samsung is getting too ahead of itself if they think they can create all this hype and then not deliver on it. The fun thing about Apple rumors and hype leading up to Apple press conference is that you don't know what Apple going to show and that the fun part about it. Now I think Samsung is trying to duplicate Apple press conference with their "Samsung's Global Unpacked Event". The hype is there for Samsung but it not like Apple hype.
Apple hype isn't quite what it used to be.
Changed forever about a year and a half ago.