Samsung launching mobile ad platform to challenge Apple's iAd, Google

Posted:
in General Discussion edited January 2014


Samsung revealed on Tuesday plans for the AdHub Market, a new service that will challenge mobile advertising platforms from Apple and Google by allowing advertisers to place ads on its mobile devices.



The South Korean electronics manufacturer will work closely with OpenX Technologies on an exchange allowing companies to bid on advertising space within applications on its devices, the two companies announced on Tuesday.



“Samsung is empowering both the developer and the advertiser, by creating a win-win solution, in which the app developer is able to achieve higher revenues and advertisers are able to reach their marketing goals," said Daniel Park, Vice President of Samsung’s Media Solution Center.



"This is the first time any device manufacturer has entered the ad tech space in this way," OpenX Chief Executive Tim Cadogan told The Wall Street Journal. "It is becoming very clear to the principals in the mobile space that advertising is going to be a very important part of the revenue mix."



Cadogan added that Samsung took a year looking into "a range of players" before choosing his company. Open X currently makes $100 million in annual revenue and is contemplating further moves into the mobile advertising industry.



AdHub Market is expected to arrive in the second half of this year. Samsung launched an AdHub advertising platform for SmartTVs earlier this year.



Samsung has risen to become the world's second-largest mobile phone maker, behind only Nokia. According to Gartner Research, Samsung held a 19.4 percent share of global mobile device sales in the fourth quarter of 2011. The company is also in fierce competition with Apple for the top spot among smartphone makers.



As it enters the advertising market, Samsung will find itself in awkward competition with Google, which makes the Android mobile operating system that has helped the Korean handset maker rise. Since it offers the software for free, Google relies on advertising revenue from Android in order to profit from the platform. Google recently revealed as part of an legal dispute with Oracle that it made just $550 million from Android from 2008 to 2011.



For its part, Apple has not had smooth sailing with its own iAd service. The company has steadily improved its terms in order to drum up support from both developers and advertisers. Apple recently increased developers' share of iAd revenue from 60 percent to 70 percent.



iAd received a significant amount of buzz when it launched in 2010, but Apple has had to decrease its minimum for advertising campaigns to attract advertisers. A report from February claimed Apple is in the midst of a "reset" of the service.



[ View article on AppleInsider ]

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Comments

  • rabbit_coachrabbit_coach Posts: 1,114member
    The wannabe Apple Samesung strikes again.

    This probably will hurt google the most. Or will the Samesung/ Android phones be cluttered with googles and Samesungs adds?

    No Wonder they need such big displays on their phones.
  • monstrositymonstrosity Posts: 2,051member
    Quote:
    Originally Posted by AppleInsider View Post


    ...but Apple has had to decrease its minimum for advertising campaigns to attract advertisers.



    "had to" you make it sound like Apple were forced. I personally think this was part of their strategy from day one to ease growth into a new revenue stream.



    AppleInsider (and others) assume apple were always going to have a $1m minimum budget policy, the minimum entry was inevitably only gonna reduce IMO.

    I doubt they had systems in place to review vast amounts of marketing material to the standard they required, or perhaps to a standard they had not even yet set.
  • michael scripmichael scrip Posts: 1,856member
    How will this work exactly?



    If you use an app on a Samsung phone... you'll get ads served by Samsung.



    But if you use that same app on any other Android phone... you get ads served by Google?
  • jsonjson Posts: 54member
    So if they call their "iCloud type" service sCloud what are they going to call their "iAd type" service?



    sAd?
  • aramisthoaramistho Posts: 1member
    Samsung Ad will not hurt Apple but Google... That will just make Google angry to Samsung and I'm thinking if Google take back Android to become close software for Motorola use only... What happen to Samsung? Samsung is too over to challenge Apple and now Google.
  • nasseraenasserae Posts: 3,134member
    Here we go.
  • dmarcootdmarcoot Posts: 191member
    I will dare say this is the fragmentation that will drive Google to do as has been suggested on other sites today that Google would distance itself from Android and focus on the Play brand. With the top selling manufacture of phones that run Android even suggesting of undercutting Google's goal of revenue from mobile ads, what choice would Google have? All those Open Source fans who thought Google was as ideological as they will have a lot of shit to swallow as they justify Google's future as a Apple, Inc clone.
  • splash-reversesplash-reverse Posts: 648member
    Good. The more the merrier. This is Google territory and not Apple's iAds which is created solely for iOS and not cross platform like Google ads. Got to like (or, to laugh) Samsung. I suppose they think since they are multi-platform , might as well copy Apple entirely. Google Play is safe from Samsung I would imagine.
  • quambquamb Posts: 143member
    Ofcourse they are.
  • davemcm76davemcm76 Posts: 259member
    If Apple jumped off a cliff do you reckon Samsung would follow?



    Seriously, is there no aspect of Apples business they won't try and copy?
  • gtrgtr Posts: 3,165member
    It will be interesting to see how Samsung fares in the 'ad. industry'.



    Failure.



    That's my prediction.



    Aren't we all living in interesting times!
  • rabbit_coachrabbit_coach Posts: 1,114member
    Quote:
    Originally Posted by GTR View Post


    It will be interesting to see how Samsung fares in the 'ad. industry'.



    Failure.



    That's my prediction.



    Aren't we all living in interesting times!



    I am not so sure. Samesung was quite successful when they copied the iPhone look and feel. They might as well be profitable when they copy Apple at the add front. The only difference now: It won't hurt Apple a bit. But Google might get very googely about that.

    I guess it's going to be big popcorn time!
  • michael scripmichael scrip Posts: 1,856member
    Quote:
    Originally Posted by GTR View Post




    It will be interesting to see how Samsung fares in the 'ad. industry'.



    Failure.



    That's my prediction.



    Aren't we all living in interesting times!



    All they have to do is make cheaper ad-buys for clients... to undercut Google.



    Once again... the "race to the bottom"



  • rabbit_coachrabbit_coach Posts: 1,114member
    Quote:
    Originally Posted by DaveMcM76 View Post


    If Apple jumped off a cliff do you reckon Samsung would follow?



    Seriously, is there no aspect of Apples business they won't try and copy?



    Some Lemmingsung.
  • gtrgtr Posts: 3,165member
    Quote:
    Originally Posted by Rabbit_Coach View Post


    I am not so sure. Samesung was quite successful when they copied the iPhone look and feel. They might as well be profitable when they copy Apple at the add front. The only difference now: It won't hurt Apple a bit. But Google might get very googely about that.

    I guess it's going to be big popcorn time!



    Quote:
    Originally Posted by Michael Scrip View Post


    All they have to do is make cheaper ad-buys for clients... to undercut Google.



    Once again... the "race to the bottom"







    True.



    Time will tell.
  • tunetune Posts: 91member
    Quote:
    Originally Posted by Rabbit_Coach View Post


    Some Lemmingsung.



    If only Apple wasn't trying to sell TVs like Samsung.
  • hill60hill60 Posts: 6,959member
    Quote:
    Originally Posted by AppleInsider View Post


    "This is the first time any device manufacturer has entered the ad tech space in this way," OpenX Chief Executive Tim Cadogan



    I'm pretty sure Apple is a "device manufacturer".



    Quote:
    Originally Posted by aramistho View Post


    Samsung Ad will not hurt Apple but Google... That will just make Google angry to Samsung and I'm thinking if Google take back Android to become close software for Motorola use only... What happen to Samsung? Samsung is too over to challenge Apple and now Google.



    Samsung has Bada to fall back on, their Android customer base wouldn't notice much difference if Touch Wiz UI was overlaying Android or Bada.



    A lot of Android apps will also run in a JVM on Bada, thanks to Dalvik's close similarity to Java.



    Samsung sell "Galaxy" not android.
  • steven n.steven n. Posts: 822member
    Quote:
    Originally Posted by Tune View Post


    If only Apple wasn't trying to sell TVs like Samsung.



    Apple is selling TVs?
  • jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by Rabbit_Coach View Post


    The wannabe Apple Samesung strikes again.

    This probably will hurt google the most. Or will the Samesung/ Android phones be cluttered with googles and Samesungs adds?

    No Wonder they need such big displays on their phones.



    Let's hope that their ads are better than Nokia's.
  • rabbit_coachrabbit_coach Posts: 1,114member
    Quote:
    Originally Posted by jragosta View Post


    Let's hope that their ads are better than Nokia's.



    Don't be afraid no add can be worse than Nokia's.

    But hey Samesung might still copy Nokia's creepy f...n ugly adds.
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