In 2021, as the market rebounded post-pandemic, smartphone sales rose by 6% globally according to Tech Radar, leading to even more smartphones out there in the ecosystem. So, why are advertisers still putting the majority of their spend into social and search rather than widening their nets to these channels? Advertising directly on users’ phones is a safe, sure-fire way to reach every user turning to their smartphones, despite what they plan on doing once they get there. The world’s largest smartphone brand? Samsung.
In the very beginning, back in 1938, Samsung traded dried fish and other food products. It was even once a major player in insurance, textiles, and construction. Today, Samsung is the biggest electronics company in the world and a big driver of the booming Korean economy. Let’s dive into the Samsung smartphone market and what it looks like in 2022.
Samsung in numbers
- Samsung revenue was $244.4B in 2021 (1)
- Samsung is the 6th most valuable brand in the world with a brand value of $107.28B (2)
- Samsung shipped almost 74M smartphones in Q1 2022, 17M more than Apple (3)
- Samsung hits highest global smartphone market share in five years in Q1 2022 (4)
- Samsung holds the majority, 21%, of the market share of smartphone shipments in Q2 2022 (5)
- There were 992.4 million active Samsung smartphone owners in the world in 2020 (6)
Identifying the nearly 1B Samsung users
There were 992.4 million active Samsung smartphone owners in the world in 2020 according to Newzoo. This number is undoubtedly higher in 2022. Being aware of the customers you’ll be reaching will allow you to optimize your on-device campaigns as effectively as possible.
Samsung users are Gen X
Generation X ( 1965 – 1980) and Millennials (1981 – 1996) make up around 90% of both Apple and Samsung’s user base. While the distribution on Apple devices is fairly even, a significant majority, 65% of Samsung users are part of Generation X.
With Gen X taking up a large portion of the US workforce, 33% according to LiveCareer, Samsung users are largely business age and have likely reached the top in their professions. Gen X also makes up a large portion of purchasing power in the US - they have money to spend. This means that by making Samsung a core channel of your marketing strategy, you’re reaching an audience with great influence over household and company decisions. You’re also reaching an audience that spends more time on their phones - Gen Xers spend about 21 hours per week on their smartphones while millennials spend 19 hours according to Herosmyth.
Samsung users care more about features than design
Android users are 57% more likely to prefer a full-featured, advanced device that’s less attractive as opposed to a sleek device that only does a few things according to ansonalex. With all Samsung smartphones and tablets using the Android operating system, this statistic can be extended to Samsung users.
Samsung pushes the envelope on innovation with every phone they release, and its users put a lot of value in the tech advancements that have improved device functioning. For example, the ability to work on two apps on the same screen at the same time with a Samsung device is much more important than the size and color of the device.
By advertising directly on Samsung devices, you’re reaching early adopters. They are likely to look past the potential challenges of being the first to jump into a new technology and are looking to share their opinions. Samsung users will embrace on-device advertising as a new and unique feature on their device. For example, ironSource Aura’s Game Spotlight puts a new game on users’ phones every week based on their current preferences. You can even recommend your app to users during device updates.
Samsung phones have high brand loyalty
Samsung leads Android phones with 63.9% trade-in brand loyalty, while just 10.8% of users stick with other Android devices according to Tom's Guide. Once consumers start using Samsung devices, they’re likely to stay loyal to the brand. Even more so, Gen X has the highest rate of brand loyalty of any of the generations according to Streng.
When running UA campaigns, the ultimate goal is to acquire users that will remain loyal in the long term. Advertising on Samsung devices means reaching users that are dedicated to the brands they engage with and are unlikely to switch their loyalty once they get started.
You’re also reaching the generation with the highest likelihood of making brand loyalty a priority. All of this means that if you reach users with your food delivery app early on in the Samsung device lifecycle, users are likely to be unwavered by ads for other food delivery apps later down the road.
So, get to Samsung users first with on-device advertising, and they’re likely to stick around.
Trends and innovations from Samsung
Let’s dive into the innovations and trends shaping the Samsung brand.
The future is foldable
Half of US consumers are either very (16%) or somewhat (34%) interested in buying a foldable phone as their next device according to CNET, and Samsung is the first-mover in this cutting edge technology. In 2019, Samsung released the Galaxy Z series which is where all of its foldables live, including the most recent Fold 4 and Flip 4.
Watch how foldable phones are made: https://news.samsung.com/global/video-behind-the-foldable-phones-in-our-pockets
For advertisers, these types of devices are a valuable place to reach an engaged, growing demographic of users turning to foldables for work and play. After all, these phones make it easier to complete certain tasks historically unachievable on mobile and are able to adapt to fit users’ needs at any moment. For example, users can easily switch between watching a movie and updating a powerpoint.
You can even leverage the fold to keep users engaged and entertained, such as designing ads that allow users to reveal more ad content as they fold or unfold their devices. You also have more room to fill your ad with more important, detailed information. For example, you could have an ad that begins on one screen and ends with, “unfold to learn more.” When users unfold their phones, they’re taken to a page where they can test your app or go through an onboarding.
Foldable phones will only continue to evolve as Samsung creates more advanced folding technology. At the most recent Samsung Unpacked event, they announced that the new Flip 4 will be stronger, lighter, and thinner, and will include a flex camera. The Fold 4 will come with a redesigned gear and cog-based hinge. The future is most definitely folding and Samsung is leading the way.
The world’s largest chip company
Samsung was the world's largest chip company in 2021, according to Counterpoint Research, with revenue totalling $81.3bn in 2021, up 30.5% from 2020. Much of this was driven by a shortage from chip suppliers and high demand post-pandemic, pushing manufacturers to develop their own chips.
Samsung remains invested in chip production and was the first manufacturer to kick off mass production of 3-nanometer chips, ahead of TSMC and Intel, and is already working on the second-gen 3 nm chips for 2023. The first-gen 3 nm chips have 16% smaller surface area, a 45% reduction in power usage, and a 23% performance improvement over the 5 nm chip.
As the leader in chip making, Samsung phones are always one, or even two, steps ahead of competitors in smartphone performance. With each new chip generation, Samsung phones have faster processing, reduced power consumption, and more sustainable performance over longer periods of time. As technology continues to evolve and get stronger, Samsung phones clearly make a great channel for your advertising strategy.
“Samsung has grown rapidly as we continue to demonstrate leadership in applying next-generation technologies to manufacturing.”
- Siyoung Choi, President & GM, Foundry Business, Device Solutions Division
A focus on innovation
In an effort to design more complex chips at faster speeds, Samsung is using artificial intelligence (AI) to automate the process. How does it work? A technique called ‘reinforcement learning,’ which trains an algorithm to perform a desired task through reward or punishment, solving the potential errors in human judgment.
“We will continue active innovation in competitive technology development and build processes that help expedite achieving maturity of technology.”
- Siyoung Choi, President & GM, Foundry Business, Device Solutions Division
Samsung has also broken ground on a new semiconductor R&D complex in Giheung, Korea. The complex will lead advanced research on next-generation devices and processes for memory and system semiconductors. It will also assist in the development of innovative new technologies based on a long-term roadmap.
“Our new state-of-the-art R&D complex will become a hub for innovation where the best research talent from around the world can come and grow together.”
- Dr. Kye Hyun Kyung, President & CEO, Device Solutions Division
If you’re not already leveraging Samsung for your advertising strategy, it may be time to look into it, especially before the competition. After all, the users, technology and innovation are some of the best in the world, making these devices an incredibly valuable, unrivaled channel.
4. (Business Wire)