We were already impressed to see Samsung post healthy overall profits both for 2016’s final calendar quarter and last year as a whole, knowing how much money the chaebol lost as a direct consequence of the Galaxy Note 7 double recall, but the financial results are even more remarkable when you take into consideration marketing costs.
Apparently, the chaebol spent a grand marketing total of 11.5 trillion won (US$10.2 billion) during 2016, including 4.4 trillion won, or around 4 billion US dollars, on advertisements, both figures representing a big increase from the previous year.
Galaxy smartphone promotion was obviously trickier and pricier than ever before, due to heated high-end competition, stagnating demand across key markets, and most of all, the Note 7 debacle that required a lot of PR atonement work.
Samsung may have ended up footing a higher publicity bill than even Apple last year, with the aforementioned $4 billion far exceeding the $1.8B spent on advertising by the Cupertino-based tech giant in 2015.
Incredibly enough, this super-aggressive marketing “strategy” is expected to continue in 2017, although the Galaxy S8 probably doesn’t have much customer convincing to do. Meanwhile, LG’s own ad budget grew over 20 percent year-on-year to 1.3 trillion won in 2016, as the company “struggled to promote its high-end home electronics.”
“Super-premium products”, presumably including the G6 phone, will likely warrant a higher expenditure this year for LG also.