LONDON - Mobile phone manufacturers, including Sony Ericsson and Nokia, are substantially increasing their marketing spend to compensate for networks extending contract lengths from 12 to 18 months in the face of the mounting credit crisis.
Sony Ericsson has boosted its marketing spend by more than 40%, while rival Nokia has upped its spend by a quarter, according to Nielsen Media Research. Elsewhere, Motorola has increased its spend by almost 10%, while the launch of the Apple iPhone has brought almost £8m of promotional spend to the market.
In particular, Sony Ericsson is dedicating more of its marketing spend to pre-pay phones, despite the fact that mobile operators do not subsidise these products for their customers. The shift reflects the growth of the pay-as-you-go market as consumers seek ways to reduce their spending as financial pressures increase.
In a bid to further differentiate itself from the competition Sony Ericsson is to increase its investment in events and digital marketing. This week the group will launch its latest camera phone - the Cybershot C902 - with a TV, press, outdoor and online campaign.
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