Samsung outguns Apple in marketing, report says

Samsung spent $401 million to promote its products in the U.S. last year, compared with $333 million spent by Apple.

Kanye West performs at Samsung's Galaxy Note 2 event in New York. Samsung

With the success of its Galaxy S and Galaxy Note franchise, Samsung Electronics has shown that money talks.

Samsung outspent Apple in marketing in the U.S. last year, sinking $401 million in its promotional efforts here vs. Apple's marketing budget of $333 million, The Wall Street Journal reported yesterday, citing research firm Kantar Media.

The marketing muscle has been a crucial component to Samsung's success in surpassing Apple as the premier smartphone manufacturer and top cell phone player in the industry. With the smartphone market being incredibly competitive as ever, that marketing money will continue to be a key advantage for Samsung.

The results of Samsung's marketing budget can be seen virtually everywhere, from its "Next Big Thing" campaign on television to the splashy events it has held last year. In October, Samsung threw a giant party for the U.S. launch of the Galaxy Note 2 -- a product that had already had several big launches overseas -- which included a performance by Kanye West at the old James Farley Post Office in Manhattan.

Samsung previously declined to comment on its marketing efforts. CNET contacted Apple about its marketing budget, and we'll update the story when the company responds.

Apple, of course, continues to have the strongest brand recognition in the technology field, and it arguably doesn't have to spend as much. Customers will line up for the launch of new products such as the iPhone and iPad, a phenomenon that Samsung hasn't yet seen in the U.S. Apple's smartphone market share is primarily based on three products, its flagship iPhone 5, as well as the older and discounted iPhone 4S and iPhone 4.

Samsung, meanwhile, has its Galaxy S3, Galaxy Note 2, and a slew of other low and mid-tier smartphones. While Samsung is the top smartphone maker, Apple still controls a majority of the industry's profits.

With the upcoming Galaxy S4, Samsung is expected to keep spending heavily on promotion.

 

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