Sony Ericsson shifts adspend into digital

by Gareth Jones, Marketing 19-Feb-08, 08:45

LONDON - Sony Ericsson is boosting its digital adspend to £13m as it gives the internet a more central role in its global marketing strategy.

The handset manufacturer plans to increase the proportion it invests in website development and online advertising from 15% to 25% of its £50m marketing budget during 2008.

At the Mobile World Congress in Barcelona, Sony Ericsson head of marketing Dee Dutta outlined a strategy to strengthen the brand's online presence in key international markets in an effort to remain relevant to youth consumers.

Over the coming year, Sony Ericsson will begin diverting spend from TV, press and point-of-sale advertising to digital marketing around its handset brands, including Cyber-shot and Walkman.

The company also intends to give the internet a crucial role in establishing its Xperia sub-brand. In the first phase, it will launch a web portal showcasing its X1 handset, which is being seen as a competitor to Apple's iPhone.

Sony Ericsson currently works with Dare on digital global projects, but Dutta is considering appointing a roster of agencies to handle the increased workload. 'Digital will soon be the de facto method by which we communicate and engage with consumers,' he said. 'A strong online presence is crucial to the future of our brand on a global scale.'

Sony Ericsson is the world's fifth-biggest mobile phone manufacturer behind Nokia, Motorola, Samsung and LG. The company hopes its digital strategy shift will help it gain ground on rivals.