The Price of Competition: Apple’s Sizeable Ad Budget
What did Apple (NASDAQ:AAPL) spend approximately $1 billion on last year? According to Bloomberg, this is the amount that Apple spent on advertising its products worldwide in 2012. However, if past trends are any indication, the Cupertino-based company is likely to spend even more this year.
Apple’s impressive $1 billion advertising budget is an increase over its 2011 advertising budget of $933 million. Similarly, Apple’s 2011 budget was a jump from the previous year’s budget of $691 million. However, these numbers pale next to Samsung’s (SSNLF.PK) staggering advertising expenditure.
Last year, Samsung spent $4.3 billion on advertising its products worldwide reports Ad Age. Approximately $881 million of that amount was spent on marketing its products in the U.S.
Samsung is not only outspending Apple on advertising, it is also the number one fastest-growing ad spender in the overall U.S. market. Ad Age notes that Samsung boosted its 2012 advertising expenditure by 58 percent over the year before, making it the fastest-growing ad spender last year.
Although Samsung is spending far more than Apple on advertising, Horace Dediu at Asymco notes that “both Apple and Samsung grew their advertising almost at the same rate,” but “Samsung Electronics has a far higher ad budget.” The chart below outlines the stark differences in the advertising budgets for Apple and Samsung over the past several years.
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