Samsung's marketing budget to exceed $14bn

Samsung's enormous marketing budget is expected to exceed $14bn this year- higher than the cost of the 2012 London Olympics or Iceland's GDP.

In a bid to promote its brand power, the South Korean company will advertise its products through more outlets than ever before. $14bn equates to around 5.4 percent of its revenue, compared to Apple's 0.6 percent investment in the sector. 

Samsung is now expected to appear on additional TV and cinema ads, billboards and at major events from the Sydney Opera House to New York's radio music hall.

Reuters reports the mammoth budget does not guarantee a smooth operation. Last month, short-film contest "The Shoot" was widely criticised after Samsung products were placed in a series of 'behind the scenes' videos. Furthermore, X-Factor viewers were supposedly blatantly exposed to Samsung advertising and product placement during its most recent season.


A Galaxy s4 makes its way onto X-Factor UK.

Interbrand's Korean consultant Moon Ji-Jun says while the move will benefit the company in the short-term, more options need to be considered for the future.

"When your brand doesn't have a clear identity, as is the case with Samsung, to keep spending is probably the best strategy. But maintaining marketing spend at that level in the longer term wouldn't bring much more benefit. No one can beat Samsung in terms of (ad) presence, and I doubt whether keeping investing at this level is effective."

In a statement, Samsung said it would "continue to leverage our brand power to maintain growth momentum, while focusing on optimizing the efficiency of our marketing activities."

Source: Reuters | Image: DynamixDaily Mail

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16 Comments

And through their marketing they've sold a lot of products.

On an unrelated note, that first photo is from across the street of Flinders St Station in Melbourne, Australia.

That photo is the only reason I clicked on this article, I thought I recognized that hotel!!

I'll admit that Samsung has done well with their advertising, just as Apple has done in the past. Everyone and their mum seem to be saying their next phone will be a Samsung, if they haven't already got one. When I ask why I don't really get much of an answer. When I suggest this phone or that, equivalent in specs and features for less, its a straight out no. It all seems to be about the ads and status of having a phone they've seen on TV.

..but I guess that's the way the world works.

My nexus 4 gets "mistaken" for a Galaxy S4 more often than not!

Yep. After the Knox debacle, most enthusiasts are looking elsewhere for better phones which can be easily customized.

The Smart TV having gesture based controls are gimmicky and gestures do not work.

The smart watch or what Samsung calls.. Galaxy Gear failed hard.

In short, I can see Samsung's goodwill starting to slowly fade. They have already summited. It's hard to stay at summit forever. They need to tighten up their budget.

I myself going to sell Note 2 and switch to LG.

TMYW said,
What Knox debacle?

Knox security implemented from Samsung's Android version 4.3 onwards makes it near impossible to install a custom rom and again go back to stock TouchWiz rom. The e-fuse trips permanently and warranty becomes void.

Not a good thing to implement and screw your loyal enthusiasts.

If you will never ever intend to install plain AOSP android, then Samshit phones are for you.

This is the Knox debacle.

Fun Fact : That's about the same amount which Google makes in one quarter and here Samsung is spending this amount just in marketing its products. Oh boy! Samsung must really be grateful to Google for Android

stevan said,
That's a ridiculous amount of money. I wonder where they will be doing most of the spending...

I think some of that money has inbuilt future copy lawsuit from Apple and other manufacturers. Overall some marketing companies must be enjoying these windfalls.

stevan said,
That's a ridiculous amount of money. I wonder where they will be doing most of the spending...

Samsung also spends a ridiculous amount on R&D. There's nothing wrong with spending marketing money to monetize the R&D. Spending makes the world (economy) go-round, so I'm glad to see Samsung do its part instead of being a money hoarder like Apple is.

TMYW said,

Samsung also spends a ridiculous amount on R&D. There's nothing wrong with spending marketing money to monetize the R&D. Spending makes the world (economy) go-round, so I'm glad to see Samsung do its part instead of being a money hoarder like Apple is.

I think one segment where Samsung should absolutely copy Apple is spending less on advertising and more on it's products. Not saying Samsung makes bad products, just this much money on advertising is ridiculous.

stevan said,
I think one segment where Samsung should absolutely copy Apple is spending less on advertising and more on it's products. Not saying Samsung makes bad products, just this much money on advertising is ridiculous.

Agreed - here we are in December and where is Kitkat? Samsung has just started rolling out 4.3 - anyone else out there maybe questioning why Samsung spends so little on actually supporting their existing customer base in favour of ignoring it until it absolutely must throw some sort of bone to them?

Hang on, we're constantly told by the anti-Apple fanboys that all Apple do is spend money on marketing to sell their otherwise uncompetitive products but when Samsung spends more than apparently these same anti-Apple trolls either defend it or absent from this article's comment section. Interesting.

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