Samsung spent significantly more than Apple to promote its mobile business in the US over the last year. HTC came third at a huge distance.
When it comes to success in the mobile business, money really does talk. At least that’s the conclusion one can draw from the figures released by research firm Kantar Media, which put Samsung on the first place in ad spending in the United States.
As reported by the Wall Street Journal, Samsung splurged on ads $401 million in 2012, in the US alone. Apple came in second (in the telecom sector) with $333 million. HTC spent just $46 million, while Blackberry and Nokia completed the top five. These figures include money spent on ads on television, print, and billboards, as estimated by Kantar Media.
Even more impressive than the title of top spender is the evolution of Samsung’s advertising budget over the past few years. In 2011, the Galaxy maker spent just $78 million, dwarfed by Apple’s $253 million. Put another way, the Korean corporation quadrupled its ad budget in just two years, while Tim Cook’s company registered a far more modest 30% growth.
Many market watchers have attributed the recent success of Samsung’s mobile division to the generous amounts spent on advertising and other marketing activities, including incentives and training for sales representatives and in-store advertising. Recently, the Korea Times reported that Samsung spent close to $11 billion on marketing in 2012, in the entire world and including the company’s other activities, such as manufacturing of mobile component or home appliances.
Looking at these figures, I am wondering how much of the success of the Galaxy line is owed to advertising and marketing, as opposed to its intrinsic value. And how would the market look if, HTC, for instance, had Samsung’s marketing machine at its disposal. What do you think?