Samsung's advertising campaign this year is expected to reach 14 billion dollars

According to foreign media reports, Samsung's advertising spending this year is expected to reach 14 billion U.S. dollars, the figure is equivalent to Iceland's GDP for a year. However, such huge advertising spending did not give Samsung a corresponding return, such as Gear smart watch. High input, low output also exposes Samsung's marketing strategy error: Too much emphasis on the ego, but ignore the user. The following is a summary of the article:

Samsung's ads are ubiquitous-television, film advertising, outdoor billboards, sporting events or artistic activities. Samsung's advertising spending has even surpassed Google's acquisition of Motorola's handset business.

Marketing too much emphasis on self

At present, Samsung's market value has reached 227 billion U.S. dollars. It is no secret that Samsung has been throwing money into crazy advertising campaigns to get the same brand name as Apple. However, the huge amount of money spent on it has not had the desired effect on Samsung.

Last month, in a micro-film competition sponsored by Samsung and held at the Sydney Opera House, viewers gave a bad comment on the advertising of Samsung products that appeared at the end of the video. In addition, the "British talent show" appeared in the Samsung ads also attract harsh "criticism."

Earlier this year, Samsung's latest Galaxy smartphone New York product launch also attracted a variety of spits, with male users accusing it of being too "explicit", depicting a group of women talking about jewellery and nail polish, giggling at the conference. Similarly, Samsung's new refrigerators and washing machines were similarly complained about when they were released in South Africa.

"Samsung's marketing is too focused on itself, trying to show what they want: innovation and avantgarde," said Oh Jung-suk, a professor at Seoul University Business School. But they have not been able to effectively combine their expectations with the consumer's response to the marketing campaign. Samsung should pay attention to the balance of the two. ”

Samsung advertising revenue 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%.

"When your brand is not clearly positioned (Samsung, for example), continuous advertising is probably the best strategy." However, the long-term maintenance of such large advertising spending will not yield much. No one can beat Samsung in terms of advertising, but the effectiveness of these ads is questionable. "Moon Ji-hun, head of Interbrand, a brand consulting firm, said.

Samsung said it would continue to use its brand influence to maintain its growth momentum, while also optimizing its advertising strategy to boost its marketing effectiveness.

"Samsung's product innovation and marketing strategy make us the most popular smartphone brand in the world," said J.k.shin, president of Samsung Mobile operations. Now we are moving from the most popular brands to the world's most coveted brands. ”

Innovation, not imitation.

Samsung's marketing strategy of "next blockbuster" (Next big Thing) and "Change is happening" (It's time to shift) has always been emphasized: Samsung's products are very avantgarde and its technology is the most advanced in the world.

For a company that has long acted as a copycat, "innovation" is now a big selling point.

But, according to Interbrand and Ad Age research data, Samsung's advertising spending reached $4.3 billion trillion last year, and it has become the world's largest advertiser, but its brand value is only 396 billion U.S. dollars, less than half of Apple, the latter last year ad spending only 1 billion U.S. dollars.

There is no doubt that Samsung has a broader range of mobile products, coupled with chips, home appliances business, its marketing strategy needs to target different consumer groups. However, the huge advertising spending shows that the company is eager to convince consumers that Samsung is at the point of the pyramid. Although Apple has less advertising, it has acquired brand awareness.

Horace Dediu, founder of Asymco, a marketing research firm, said: "The more powerful, the more unusual the product, the less advertising you need to advertise, Apple is the example." Jores de Dio ”

Samsung can consolidate its leading position in the global smartphone market through huge advertising spending. Samsung now occupies one-third of the global smartphone market, with a market share of more than twice times that of Apple. In addition, Samsung's heavy investment in distribution channels has strengthened its Galaxy mobile brand.

But Benedict Evans, a research firm Enders Analysis analyst, said: "The Samsung Galaxy brand has built its own profile, and Samsung is now more powerful than any other Android or OEM brand, except Apple." Evans The fundamental problem is that Samsung has branded its brand as a quality brand, not a unique or premium brand. ”

Samsung has been working with a number of advertising agencies, including the Lion group, the Interpublic Group and MDC Partners.

High input and low output

Samsung's latest marketing ad spending is on smart watch Galaxy Gear, but the device has been blamed by global commentators on almost one-sided charges. Although the device through a variety of channels to promote publicity, but the effect is very little, open for two months, only 800,000 shipments. , and Note3 smart watches since September, shipments have reached 5 million.

However, Samsung has said that they will be more publicity for the gear in the year-end holiday season, thereby gaining a leading position in the wearable technology market and proving their ability to innovate.

Samsung may know better than anyone that gear could not be a mainstream product. But the company is still sparing no effort to deliver this message: we have the technology and we can do it first. Moon Ji-hun said.

Samsung, which gained 9.6 billion of dollars in operating profits in the third quarter, is still investing to get consumers.

As a sponsor of the winter and Summer Olympic Games in the past 8 years, Samsung has funded 11 world-class soccer stars, including Lionel Messi, to publicize its galaxy equipment ahead of next year's World Cup in Brazil.