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Samsung's, LG's marketing costs rise in 2016 amid heightened competition

2017/04/05 08:31

SEOUL, April 5 (Yonhap) -- Samsung Electronics Co. and LG Electronics Inc., South Korea's two leading tech giants, expanded their spending on marketing last year amid increased competition, data showed Wednesday.

According to industry data, Samsung spent 11.5 trillion won (US$10.2 billion) on marketing in 2016. The figure included 4.4 trillion won on advertisements, which advanced 15 percent on-year.

LG Electronics also spent 1.3 trillion won on advertisements last year, a 21.4 percent increase over the cited period.

Industry watchers said the rise seems to be tied to Samsung focusing on promoting its smartphones and LG struggling to promote its high-end home electronics.

Samsung struggled to promote the Galaxy S7 and the ill-fated Galaxy Note 7 last year.

The South Korean tech giant also made efforts to maintain its brand reputation after the suspension of the Galaxy Note 7's production. The phablet was discontinued on reports that some of the devices caught fire while charging around the globe.

LG aired its first advertisement during the Super Bowl, the annual U.S. National Football League championship last year, promoting its organic light-emitting diode (OLED) television.

"We have expanded spending on marketing to bolster our strategy on super-premium products," a LG Electronics official said.

Industry watchers said Samsung and LG are expected to continue their aggressive marketing strategies in 2017.

The logo of Samsung Electronics Co. (Yonhap) The logo of Samsung Electronics Co. (Yonhap)

colin@yna.co.kr

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