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Samsung's sales promotion costs top ad spending through Sept.

2013/12/17 10:24

SEOUL, Dec. 17 (Yonhap) -- Sales promotion costs incurred by Samsung Electronics Co. have topped its advertisement spending in South Korea through September this year, as the world's No. 1 smartphone maker directly targets customers amid severe competition, data showed on Tuesday.

According to the data based on its regulatory filings, Samsung's sales promotion spending reached 934 billion won (US$888 million) in the first three quarters of the year, up 38.7 percent from a year earlier, while its spending on advertisements dropped to 695 billion won from 1.71 trillion won over the cited period.

It marks the first time that Samsung's sales promotion costs on its home turf have exceeded its advertisement spending.

Sales promotion refers to marketing activities aimed at boosting sales by issuing coupons and providing rebates among other financial incentives provided to consumers and retailers.

The data suggest Samsung is providing a series of incentives to buyers to achieve the short-term goal raising sales figures amid increased competition with local and foreign rivals.

This year, Samsung has released a series of new products, including the Galaxy S4, the Galaxy Note 3 and other smart devices.

The data also showed that Samsung's sales promotion in overseas markets totaled 4.89 trillion won in the first nine months of the year, sharply rising from 2.37 trillion won a year earlier.

Another data released earlier showed that Samsung has surpassed Apple Inc. in advertisement spending in 2012.

According to the data compiled by Kantar Media, Samsung spent $401 million in advertisements in the U.S. The spending was used on television, print, billboards, and Internet ads. Apple ranked second with $333 million in spending, while HTC placed third with $36 million.

sam@yna.co.kr

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