Home  › Media › Mobile
video-nielsen

Samsung Mobile Exchange Key to Multi-Screen Ad Strategy

  |  April 4, 2012   |  Comments

Samsung AdHub signals desire among device manufacturers to snag digital content revenue.

Samsung Electronics yesterday said it would work with OpenX Technologies to create a new private advertising exchange specifically for global mobile inventory, signaling a growing desire among device manufacturers to snag digital content revenue.

The Samsung AdHub Market, expected to launch in the second half of 2012, will be available to advertisers that want to advertise on mobile apps on Samsung phones and tablets. In addition to serving third-party app developers, Samsung owns and operates some apps that will make inventory available.

Daniel Knapp, head of advertising research for IHS Screen Digest, said, "It's not surprising that they are trying to move from hardware manufacturing to monetizing through advertising, as well. In fact, you could wonder why other TV manufacturers aren't venturing into that space."

Earlier this year, Samsung formally launched its Samsung AdHub for SmartTV advertising. There are no immediate plans to connect the AdHub for phones and tablets to the SmartTV platform, an OpenX spokesman said, but it's possible that the deal will expand to encompass SmartTVs.

Knapp sees the latest exchange as part of a multiple screen strategy for Samsung.

"If you want to be serious about mobile advertising, you have to have multiple devices. It doesn't make sense to just occupy one device or one screen. And Samsung is in a much better position than other TV manufacturers because it’s in so many different screens. Taken all together, this becomes a very valuable advertising proposition."

Nevertheless, Knapp found it surprising that Samsung is focusing on real-time bidding. While RTB exchanges have helped online publishers optimize inventory and price, Knapp pointed out that there isn't excess, non-premium inventory in mobile.

Luxury brands are some of the biggest spenders on mobile advertising, he said, but their campaigns tend to be customized for premium placements.

"There's still so much opportunity in the premium and bespoke levels of mobile," Knapp said. "Further down the line, this makes sense."

There are already plenty of mobile ad exchanges. In March 2011, mobile marketing technology provider Velti launched mGage using assets it acquired through the purchase of Mobclix. It also provides white label exchanges to let publishers, agencies, networks, and media companies create private marketplaces. In December, Nexage opened its own private mobile exchangefor premium publishers and app developers.

And then there's the Google's AdMob-powered exchange, already delivering ads to the same Android devices that Samsung will target.

"Samsung turns into Google's frenemy," Knapp said. "And Google is obviously trying more aggressively to monetize than Apple, which can rely on high hardware revenue."

While Knapp sees little evidence yet of consumers cutting the cable cord in numbers, he said, "I see mobile as a puzzle piece in a wider strategy of having a direct content relationship with consumers through IP-based content, as gate keepers are falling away in the legacy industries. Or at least, that's the hope."

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!*
*Early Bird Rates expire April 17.

ABOUT THE AUTHOR

Susan Kuchinskas

Susan Kuchinskas has covered interactive advertising since its invention. The former staff writer for Adweek, Business 2.0, and M-Business covers technology, business and culture from Berkeley, CA.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive Marketing Apps for Landing Pages White Paper

Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...
    • Design and Publishing Specialist
      Design and Publishing Specialist (Bonner and Partners) - BaltimoreIf you’re a hungry self-starter, creative, organized and have an extreme...