Samsung Electronics runs past Proctor & Gamble to become the largest advertiser in the world, with an advertising spend of an incredible $11.2 billion. P&G, however, remains in second place with an overall advertising spend of $10.5 billion.
Samsung increased total advertising budget by 13% in 2017. The FMCG focused company, P&G, cut $200 million out of their advertising budget as their ads weren’t effective. The budget cuts did not, however, extend to P&G’s wider media spending as funds were directed elsewhere to increase TV, radio, ecommerce and audio spend.
Thus, P&G remains the world’s largest spender on overall advertising (offline and online), reporting $7.1 billion in advertising costs in the year ended June 2018, including TV, print, radio, internet and in-store ads. Samsung’s reported advertising expenses, excluding its massive sales promotion budget, came in at $4.8 billion in 2017.
The dedicated ad spend is part of Samsung’s overarching mission to reposition itself as an “aspirational consumer electronics brand.” According to Thomson Reuters data, Samsung spends a larger proportion of its annual revenue, 5.4%, on advertising and promotion than any of the world’s top 20 companies. This year, Samsung is forecasted to spend $14 billion on advertising and marketing.
Out of the 100 biggest ad spenders, there was a 4.9% increase in ad spending with increases by 68 companies. Alibaba Group Holding had the fastest growth, as they more than doubled their spending compared to the previous year, which stood at $2.7 billion.
Apple spent just $1 billion on advertising in comparison. The increase in Samsung’s ad spend follows a difficult period for the tech giant after multiple recalls of its Galaxy Note 7 handset. Other notable ad spend increases include Alibaba Group Holding, doubling spending compared to the previous year at $2.7 billion.