Samsung to Open Mobile Ad Exchange

Smartphone-SamsungThe leading smartphone device maker, Samsung, has tossed its hat into the mobile ad ring with the announcement this week it would launch an ad exchange later this year. Samsung says it will work with OpenX to create a private ad exchange using real-time bidding (RTB) on mobile inventory. The Samsung AdHub Market, Powered by OpenX claims to be the first such private ad exchange aimed at global mobile inventory across both smartphones and tablets.  Samsung is the largest maker of Android-powered smartphones, and it maintains a line of Android-powered tablets as well.

Slated for a second half launch, AdHub will allow purchasing of inventory both from app developers as well as from Samsung directly. The RTB model is meant to appeal to developers, who can set minimum pricing on their inventory and let advertisers bid for each impression served on the devices in real-time. Samsung says that the market will allow developers to control their inventory and approve all sources of ads.

The AdHub puts Samsung in direct competition with one of its chief partners, Google. Google not only makes the Android operating system that powers the most popular Samsung models, but it also runs the AdMob ad network that already serves inventory in Android app.

The announcement indicates Samsung’s increased determination to take on Apple on multiple fronts. Apple already has the iAds ad network running within its iOS operating system. And while Apple continues to eye the TV market, Samsung has already launched a TV app ad marketplace, also called AdHub.

Samsung is partnering with an established player in the Web ad technology arena. OpenX is extending into mobile with an ad serving platform that supports standard mobile ad formats as well as the newer MRAID rich media standards.      

1 comment about "Samsung to Open Mobile Ad Exchange".
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  1. Matthew Snyder from ADObjects Inc, April 4, 2012 at 11:47 a.m.

    I think a key take-away with this strategic move is that there is a strong reason for Device manufactures to build out their own Ad Networks/Exchanges that integrate seamlessly with the device architecture.

    As the Android OS has been established to be FREE and Open, the business models of monetizing the web/apps via ads is a key bundle of money that the OEM's will not shy away from given the fact they can bring lots of value over-the-top with better integration at the device level. Areas of integration will come throughout the entire OS and the embedded apps as well. The link between contact book, social media with the context of location and environment will lend itself as a possible "gold-mine" for relevant advertising if done properly.

    If we look at the results of the trading of the IPO of Millennial Media, we can see the market is ripe to move into forecasting that mobile marketing and advertising is going to be big, big, big as we all imagined...... Mobile First is now a reality given that >50% of US subscribers now have smartphones...

    Given the fact that we are in the middle of the FTC privacy discussions it only makes sense for other players like Samsung to now jump into the arena. Why should they wait for the results but be actively involved with their own
    business models surrounding these discussions.

    I look forward to this continued thread Steve!

    Thanks!
    Matthew Snyder

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