Samsung beats P&G to emerge as the world’s largest advertiser

Final updated: Dec 4th, 2018 at thirteen:47 UTC+01:00

According to a new report from Advertizing Historic period, Samsung Electronics beats consumer appurtenances giant Procter & Gamble (P&G) to emerge equally the globe's largest advertiser in 2017. The rankings which are based on reported and estimated spending by companies on various forms of advertising, including sales promotions, placed Samsung'southward spending at a whopping $11.2 billion concluding year, alee of P&K'due south estimated $ten.5 billion in the twelvemonth ended June 2018.

Samsung's ad spending went up by 13% yr-on-year, while P&G didn't see much of a modify compared to the previous twelvemonth. Though there is no evidence of a straight correlation, the report observes that Samsung'due south marketing costs increased as the company tried to put behind the Galaxy Note vii disaster.

Samsung'due south massive sales promotion upkeep

Interestingly, the report says P&G is still the largest advertiser in the globe when you consider a "narrower definition of advertising." The consumer goods company spent a reported $vii.1 billion on TV, print, radio, internet, and in-store ads, while Samsung spent $4.viii billion on the same. This excludes Samsung's "massive sales promotion budget" (freebies, discounts, contests, etc.) which is what catapulted the S Korean company to the top of the rankings.

Though Samsung Electronics continues to postal service tape earnings in the recent quarters, near of it is driven by the stellar performance of the visitor'south semiconductor business, which doesn't need or rely on huge ad spending. Consumer products like smartphones, tablets, television, PCs, etc. which crave massive marketing costs oasis't been performing likewise every bit Samsung would have wanted.

Due to increasing market saturation and contest from Chinese brands, smartphones sales, in particular, has turned out to exist a major concern for Samsung. The company has already undertaken many measures to counter the slump in sales, but the results are far from satisfactory so far. A recent study stated that the company is now reviewing the operation of the PR agency looking later its mobile concern in its latest attempt to turn around the smartphone concern.