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

post #1 of 53
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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 ]
post #2 of 53
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.
post #3 of 53
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.
post #4 of 53
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?
post #5 of 53
So if they call their "iCloud type" service sCloud what are they going to call their "iAd type" service?

sAd?
post #6 of 53
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.
post #7 of 53
Here we go.
post #8 of 53
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.
post #9 of 53
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.
post #10 of 53
Ofcourse they are.
post #11 of 53
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?
post #12 of 53
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!
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post #13 of 53
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!
post #14 of 53
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"

post #15 of 53
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.
post #16 of 53
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.
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post #17 of 53
Quote:
Originally Posted by Rabbit_Coach View Post

Some Lemmingsung.

If only Apple wasn't trying to sell TVs like Samsung.
post #18 of 53
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.
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post #19 of 53
Quote:
Originally Posted by Tune View Post

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

Apple is selling TVs?
post #20 of 53
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.
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post #21 of 53
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.
post #22 of 53
Quote:
Originally Posted by Tune View Post

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

Who cares, as long as they won't do a copycat stunt like Samesung, they may sell what ever they see fit for. But TV isn't really my thing. So unless Apple comes up with something really groundbreaking. I will not hold my breath.
post #23 of 53
Quote:
Originally Posted by Rabbit_Coach View Post

But TV isn't really my thing. So unless Apple comes up with something really groundbreaking. I will not hold my breath.

Usually, if it's not groundbreaking, Apple doesn't bother. I don't know if Apple will make a TV. But, if it does, it will not be like anything Samsung (or anyone else) makes today. It will be groundbreaking.
post #24 of 53
When Google moved to acquire Motorola, we all wondered how that would affect the relationship of Google with its other handset carriers. Google made a calculated decision that it could manage the fallout. The problem now is that Samsung is seeing the same data we are about their share of Android phones (and profits) and they are "feeling their oats" to use an old phrase. If Google can try to make money selling handsets on a large scale (as opposed to the occasional Nexus device), why can't Samsung return the favor by getting into the ad space business?

If you think Android is fragmented now, this presents a potential rift that may devolve into a complete platform schism. Android is open source, mostly but getting to call yourself an Android device means you accept Google's terms for distribution. And at the top of the list of those terms of accepting Google's ad network. Amazon already forked Android in the tablet space for the Kindle Fire since they didn't really need or want Google's ads since they are trying to keep people in Amazon content walled garden. The article doesn't mention that Google's network is being replaced here which means you just might be getting even more ads on your Samsung Android phone. Does Google's Android terms allow companion/competing ad networks? And even if they don't, is Samsung's share of Android make it such a big player that they could just declare their own version and split the entire market? Right now, it's working for Amazon.
post #25 of 53
Quote:
Originally Posted by jj.yuan View Post

Usually, if it's not groundbreaking, Apple doesn't bother. I don't know if Apple will make a TV. But, if it does, it will not be like anything Samsung (or anyone else) makes today. It will be groundbreaking.

Quite true for basically all Apple products so far, except maybe the existing AppleTV. So If they just put this device into a big display, I wouldn't consider it as groundbreaking.
Actually I don't believe they would do just that. Nevertheless I have a difficult time to imagine what else they will do about it.

Time will tell.
post #26 of 53
Quote:
Originally Posted by NasserAE View Post

Here we go.

All your ads are belong to us. -Samsung
post #27 of 53
Quote:
Originally Posted by Tune View Post

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

You're basing your snark on rumored rumors? How cute.
post #28 of 53
Quote:
Originally Posted by lkrupp View Post

You're basing your snark on rumored rumors? How cute.

'rumored rumors'?
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post #29 of 53
Do I get points for predicting in Oct. 2011, that Google will halt active Android development "for any & all device manufacturers" as early as Summer 2012 ?

I do believe I saw this coming and posted here already last summer stating the same.

What with
1) Google purchasing Moto;
2) Amazon forking their own;
3) "The Lawsuit Larry" Affair aka Oracle vs. Google... regardless of whether it's been watered down;
4) ... and the nastiest, most inglorious fact of all...?...

...Google makes 80% of their mobile profits from iOS devices!

I expect a "googly-good" shareholder revolt soon.

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post #30 of 53
Quote:
Originally Posted by jragosta View Post

'rumored rumors'?

Are you rumoring about rumored rumors?
post #31 of 53
Quote:
Originally Posted by Tune View Post

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

By your logic, then, Apple was copying Samsung by originally selling the iPhone. I've never read of anyone implying that Samsung was copying Apple by virtual of just selling even a touchscreen phone. However, it is clear from numerous sources that Samsung is copying Apple's basic design, its package, its strategy, etc.

That being said, I don't think AdHub is an Apple copy. Samsung is the number one Android vendor and the only one, from what I've seen, that is making a profit. It is the only one selling both large numbers of phones and making money doing it (far less than Apple, but that's another story.)

So. It is now time for Samsung to stretch its wings as well as its talons.

At the risk of mixing metaphors, this is a shot across the bow at Google.
post #32 of 53
It's been evident for a while that Samsung's success in putting Android on their handsets has convinced them that they're the rightful heirs to Sony and Apple. As such, they won't be content to just sit back and act as a profit conduit for Google.

I expect there will be further announcements from Samsung around their in-house services, and that at least some of those will undercut their relationship to Google. From the way they carry on (and their somewhat problematic relationship to the ideas of intellectual property, authorship and originality), I wouldn't be that surprised if they forked Android enough to declare it "their" OS-- after all, the way they're going, they're going to be the only viable manufacturer of Android hardware, so who's to stop them?

Thing is, Samsung sucks at software, so their hubris may prove to be their downfall. The only thing they've ever been good at is adequate to good hardware. Their in-house UIs are horrible, their quality control variable, and their interoperability a joke. The only thing they have going for them is the ubiquity and mass acceptance of Android as the default "other than Apple" OS. But they don't see it that way, so I guess we'll see how that goes.
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post #33 of 53
Advertising on over 225 milion phones isn't something you can easily dismiss if you are an advertising agency.

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post #34 of 53
Quote:
Originally Posted by Michael Scrip View Post

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?

I wa wondering the same thing.

The only answer I can think of is that Samsung will have many of thier own apps on their phones, and those apps will serve Samsung ads.
post #35 of 53
Quote:
Originally Posted by Galbi View Post

Advertising on over 225 milion phones isn't something you can easily dismiss if you are an advertising agency.

Advertising is something I easily dismiss when I am on my mobile phone and am paying for minutes.
post #36 of 53
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"


And that's Google's biggest fear. Forking of Android isn't a big deal for them. They didn't really make an issue of Amazon going their own way with Fire. But taking a bite out of advertising prices would be a disaster.

I think it's going to happen anyway. I've seen some reports that online advertising prices are falling - and I expect that to continue as people are realizing that it's not really that effective. Google may be facing a serious revenue crunch in a few years.
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post #37 of 53
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.

Hmmm,

Google does mobile ads

THEN Apple does mobile ads

THEN Samsung does mobile ads......and they are copying apple????????????????????????????????????????????? ?????????????????????????????????????????????????? ??????????

Shouldn't that be they are copying google?
What a dumb thing to say.

Then again, apple did invent invention (US Patent #1) so yeah, maybe you are right
post #38 of 53
"OpenX." Very non-descriptive. I don't know what it is, but it must be good because it's "open" like Android

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post #39 of 53
Quote:
Originally Posted by addabox View Post

Their in-house UIs are horrible, their quality control variable, and their interoperability a joke...

Yet, they are the most successful seller of Android handsets and most of their users now associate TouchWiz with Android.

Which doesn't really say a lot for Android.
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post #40 of 53
Quote:
Originally Posted by DaveMcM76 View Post

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

Like this?
http://www.youtube.com/watch?v=PYP1Tjgt1Ao

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