Apple Narrows Gap in U.S. Advertising Spending With Rival Samsung
Samsung is the leader in mobile advertising, significantly outspending all its rivals on commercials that target the U.S. market. Though still number one, the Korean company's advertising dollar lead is shrinking, reports the Wall Street Journal, with Samsung's rivals increasing their advertising spending by 33 percent year over year in 2013.
According to ad research company Kantar Media, the top seven U.S. smartphone makers spent over $1.3 billion in 2013 on advertisements for print, TV online, radio and outdoor venues. Apple spent $351 million last year, with the bulk of that money ($339 million) going toward TV ads.
While Apple increased its spending 5 percent year over year on mobile phone ads, Samsung scaled back its advertising efforts, reducing its U.S. advertising by 10 percent in 2013 to $363 million. The gap between Samsung and Apple now has narrowed to $12 million, which is less than the $68 million gap in 2012.
Samsung is known for its aggressive Galaxy marketing campaigns, which routinely target rival devices. Samsung's clever tagline "The next big thing" reportedly infuriated Apple executives and lead to a tense email exchange between Apple's head of marketing Phil Schiller and the company's longtime ad agency, TBWA/Media Arts Lab.
Despite outspending Apple in advertising dollars, Samsung trails Apple in U.S. smartphone subscribers, with 26.7 percent market share as compared to Apple's 41.6 percent. Apple's market share continues to grow, but the overall rate of adoption is slowing as the smartphone market approaches saturation.