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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