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.
Top Rated Comments
Missing in this analysis is the fact that Apple has huge own retail operation. It literally pay a lot of salespeople to sell iPhone exclusively. This is also a reason why Samsung promotional budget is much higher than Apple's. Obviously what Apple spends on retail counts as different budget category.
I'll just add that it seems (at least with my extended circle) that the iPhone is the "de facto." Many I know have bought the iPhone because that what's everyone says to get. Not because they've actually done any homework on their own.
My father in law is an example. Owns an iPad. Loves it. However when he was finally ready to give up his dumbphone this past year, everyone was pushing him to get an iPhone because it was "easier" and "you already have apps on the iPad" etc. But he also wanted a bigger screen. He was torn because he knew little about Android - only that most of his family had iPhones. I told him ultimately what you stated above. They all would do whatever he needed to and handed him my phone for him to play with to see how much of an "adjustment" it would be. Now this is NO power user and other than his iPad usage - had never used a smart phone. Somehow (I say sarcastically) he was able to figure everything out he needed to do very quickly and when he went into the store ultimately decided on the S4. The screen was the deciding factor. But also, the "relief" that switching to another OS wasn't going to be mind boggling as some had intimated.
No features you don't like or would never use aren't flaws. If so, iOS has a bunch as well.
I have a Samsung device - tell me what Malware is on my phone. My battery life on my S4 is longer (way) than on my newest iPhone. By at least an hour or two.
Google Play services and core apps are constantly updated. Almost weekly. I don't care about MAJOR os updated because I buy the phone for what it can do - not what it might do in the future.
I have never had an app on iOS that I couldn't get on Android and that didn't function the same or similar. This is a subjective comment based on what Apps one uses.
My viewing angles are no better/no worse than on my iPhone.
And the camera and software on my Samsung blows the iPhone away. I rarely pick up my iPhone to take a picture now.
I guess different people have different experiences. Crazy huh?
No - but the issue being addressed is that Android OEMs offer incentives, right? Part of that is profit margin carriers make by selling their phones. Apple phones have less margin.
So all things equal - assume no kickbacks and no contracts - carriers make more money selling (some) Android phones as I understand it.
Apple "gets away" with low profits AND big sales because they HAVE contracts to sell a set amount.
Flaws such as what?
Features that you don't like/see no benefit in are not flaws.
I have a different experience. I love my iPhone - but use my S4 way more now. The camera software is far superior as are the images/videos I can take with it.
NFC as a payment method hasn't been very useful for me - however since my wife also has an Android phone - the ability to tap our phones to transfer pictures, a webpage we're looking at, etc has been great.
I also have had few glitches with Android as an OS - nothing that I didn't experience with iOS either.
But everyone should use the phone and OS they prefer. And leave it at that. Everyone has a different use case and subjective opinion. Bashing other phones just because it's not the one you use is silly. Let everyone enjoy their purchases. The "judgy" behavior is pretty appalling.