Samsung's advertising and marketing spending is expected to reach $14 billion trillion this year, Reuters reported December 2. However, such a huge amount of spending has also sparked controversy, and industry experts say the Samsung approach is unwise.
Samsung advertising spending accounts for 5.4% of its annual revenue, according to Thomson Reuters, a figure that has left the world's top 20 companies behind. Apple advertising revenue accounted for only 0.6% of the total, GM for 3.5%. Last year, Samsung's advertising spending reached $4.3 billion trillion, the world's largest advertiser, but its brand value of only 396 billion U.S. dollars, less than half of Apple, the latter last year ad spending only 1 billion U.S. dollars.
Brand experts say Samsung may want huge advertising spending to quickly change its image in the consumer, from "imitators" to "innovators".
Samsung may know better than anyone that its smart watch gear cannot be a mainstream product, says Interbrand, a brand consulting firm. But the company is still trying to deliver the message-"We are technologically superior". Samsung hopes to build itself into a technology-technology-based company brand through frenzied advertising campaigns.
In addition, Reuters cited the failure of some of Samsung's marketing cases, such as in the "British talent show" in the absurd, pompous ads and the Sydney Opera House at the end of the micro-film competition, the ads have attracted collective audience.
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