Samsung makes some great smartphones and tablets, but maybe the reason it’s able to sell quite so many has less to do with the hardware itself, and more to do with how well Samsung’s able to promote its products. We’ve talked before about some of Samsung’s smart advertising strategies, but just what sort of effort has the company really been making to convince us to buy its gear? Some new rumors suggest that Samsung’s spending a gargantuan sum on promotion, approaching $12 billion in 2012 alone.
Supposedly Samsung spent 12.9 trillion won, or 11.9 billion US dollars, on its 2012 advertising campaigns. That dwarfs previous estimates, which had Samsung spending something more in the range of $4 billion, still a figure far in excess of the company’s rivals.
If accurate, that means that Samsung was spending 6.5% of its total revenue on advertising alone. That compares with just about one billion dollars spent on research and development of new products.
They say you can’t always solve a problem by throwing money at it, but Samsung may have found a formula that works; we just have to see if it can sustain the sales it’s been having without needing to shell out even more of its income on advertising.