The following video is from Friday's installment of the Motley Fool's Weekly Tech Review, in which host Chris Hill and analysts Eric Bleeker and Jason Moser look at the biggest stories driving the tech sector this week.
The CEO of the mobile division of Huawei, a competitor to Samsung, has come out and said that Samsung's enormous advertising spending is the defining reason it's so successful at the moment. A recent study from Ad Age showed that Samsung increased its marketing budget in the U.S. last year to $881 million, a 58% increase from the year before. Not only that, but Samsung's "sales promotion" expenses to carriers are actually higher than its spend on advertising on television and online. Which is all to say, Samsung's marketing efforts extend deeper than its many advertisements on television.
In this segment, Jason and Eric discuss the difference between a company that does need to spend huge amounts on advertising versus a company that doesn't, what other avenues of Samsung's spending have also been contributing to its success, and why Samsung's giant marketing budget has ultimately been a big win.
The full video is available here.
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The relevant video segment can be found between 10:02 and 15:09.
Chris Hill, Eric Bleeker, CFA, and Jason Moser have no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.