Samsung Galaxy Smartphones Success Thanks to Ads?

Posted by Unknown on December 03, 2012 1

Info Tech - The success of Samsung Galaxy smartphones and tablets family, could not be separated from the incessant marketing stunt. Asymco research institute projected, Samsung spent nearly 12 billion dollars a year on advertising, commissions, and sales promotion of their Galaxy smartphones and tablets products.

Analyst Horace Dediu of Asymco, experienced in the technology industry predicts, advertising costs incurred by Samsung in 2012 for the Galaxy smartphones and tablets products reached 4 billion U.S. dollars, far greater than the advertising costs incurred by Apple, Dell, and Microsoft.

Because mobile devices are popular in the market, especially the Galaxy smartphones and tablets based on Android, Samsung allocate the cost to advertise a higher price for the product. Advertising expenditure for LCDs, TVs, semiconductor, and household appliances, considerably less than the Galaxy smartphones and tablets products.

From the above chart, we can see that the Samsung ad spending in 2010 and 2011 for the Galaxy smartphones and tablets , nearly matching the cost of advertising Coca Cola, a company whose main lot pouring budget for advertising.

However, advertising is not the only major expense in the cost of marketing. The South Korean company are also paying high commission fees and sales promotion of the Galaxy smartphones and tablets. From the graph below to see the sales promotion costs are relatively high compared to estimates ad spending.