Are Samsung’s Ad Dollars Hurting Apple?

 
on March 18 2013 8:57 AM

Fans of Apple’s (NASDAQ:AAPL) iPhone and fans of Samsung’s (SSNLF.PK) Android-powered Galaxy can argue all day about the merits of one smartphone over the other. However, when it comes to the amount of advertising dollars spent trying to woo consumers to its products there is only one clear leader. According to statistics provided by the advertising research firm Kantar Media, via MacRumors, Samsung outspent Apple in mobile phone advertising in 2012 by a 20 percent margin. Samsung spent $401 million on advertising its mobile phone devices in 2012 while Apple spent $333 million.

Samsung has not always lead in advertising expenditure. Apple spent $253 million on mobile advertising in 2011, outspending Samsung’s $78 million advertising budget by a three-to-one margin last year.

Since 2012, Samsung has been engaged in a heavy promotional campaign of its products, including advertisements featuring celebrity endorsements. Samsung spent $15 million alone for a 2-minute advertisement that aired during the fourth-quarter of this year’s Super Bowl.

The ad featured well-known comic actors Paul Rudd, Seth Rogen, and Bob Odenkirk discussing the “Next Big Thing,” which Samsung clearly thinks is its products. The teaser for the ad also vaguely referenced the recent litigation between Samsung and Apple. Rogen and Rudd try to discuss the Super Bowl without mentioning the actual name of the game or teams, implying that they could be sued by an unnamed litigious third-party.

Samsung seems to be on track to spending a significant amount of money on advertising this year as well, if the Broadway-style Galaxy S4 launch event hosted at Radio Music City Hall was any indication.

Ken Segall , the creator behind Apple’s successful “Think Different” advertising campaign, notes via MacRumors that “Samsung’s message has proven to be tremendously potent. The company continues to bash away at Apple, delivering ads that are well-produced, well-written, and seem to be striking a nerve. In contrast to Apple, which has been sticking to its product-based ads, Samsung has been scoring points with its people-based ads — most of which play off some growing negative perceptions about Apple.”

However, Segall also believes that Apple “won’t take this lying down” and will soon respond with its own successful advertising campaign.

Apple Inc. shares closed up 2.58 percent at $443.66 on Friday.

aapl friday

Copyright Wall St. Cheat Street. All rights reserved.

Share this article