Samsung and LG mistakes force them to spent $12 billions in marketing

As competition grows in the smartphone industry, technology companies tend to spend more on marketing to gain market to their opponents. According to 'Yonhap News Agency', Samsung and LG spent in 2016 two of the largest investments in the sector with about $12 billion allocated for marketing campaigns, but not only to stand out from other companies, but also To compensate mistakes.

Just Samsung spent $10 billion (about 9.380 billion euros) on presentations and new devices. Of this amount, 40% was invested directly in advertising campaigns. A budget which, compared to 2015, represents an increase of 15%.

LG spent a little amount comparing to Samsung but, in percentage, led to a greater increase in marketing investment. With a recent sales failure in the repertoire (LG G5) the company was also forced to keep up with the media landscape. The South Korean company invested about $1 billion in advertising, 21.4% more than in 2015.

Samsung's investment is also justified by the problems of Galaxy Note 7. The company's reputation was affected by the many cases of explosions. To compensate for lost sales of Note 7 from the market, the technology also created other promotional campaigns for the smartphones that had available.

According to the same report of 'Yonhap News Agency' both companies will again increase the budget for marketing in 2017.