Samsung Apple Ad: At this point, most people are well aware that Samsung is Apple Inc. (NASDAQ:AAPL)’s primary competitor in a number of markets. With this in mind, many wonder how the company was able to make up so much ground in such a short period of time. Like many companies before them, it appears that Samsung is willing to spend money to make money.
Apple Inc. (NASDAQ:AAPL) is actually the smart money’s second favorite publicly traded company but hedge funds have started dumping Apple Inc. (NASDAQ:AAPL) in favor of a surprising financial stock (see which stock hedge funds are buying like crazy).
The Wall Street Journal recently touched on this topic, focusing on how much more money Samsung spent than Apple Inc. (NASDAQ:AAPL) on advertising in 2012. Here is a brief excerpt from the piece:
“Outspent by rival Apple Inc. more than three to one in advertising for mobile phones in the U.S. in 2011, Samsung responded with a marketing blitz on TV, billboards, the Internet and print media that moved the Korean company into the pole position last year.”
“In 2012, Samsung spent $401 million advertising its phones in the U.S. to Apple’s $333 million, according to ad research and consulting firm Kantar Media. The onslaught—including ads that poked fun at Apple while dubbing Samsung devices “The Next Big Thing”—has helped.”
As you can see, Apple was top dog when it came to advertising in 2011. The company outspent Samsung during this year and probably felt good about doing so. However, things changed quite a bit in 2012 when Samsung spent $68 million more than Apple Inc. (NASDAQ:AAPL) on phone advertising alone.
It is easy to see that Samsung is investing heavily in advertising as a means of taking on Apple, head to head. These two companies are slugging it out for supremacy in the smartphone market, as well as many other areas such as tablets.
It will be interesting to see if Apple Inc. (NASDAQ:AAPL) strikes back in 2013 by spending more on advertising.
Do you believe that a larger advertising budget is what helped Samsung become more competitive with Apple? Share your thoughts in the comment section below.
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DISCLOSURE: I have no positions in any stock mentioned.
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