Samsung Plans to Launch AdHub Market - an iAd Competitor
Samsung recently revealed plans for AdHub Market, a new service that is expected to challenge mobile advertising platforms from both Apple and Google by allowing advertisers to place ads on its mobile devices. The South Korean company is working closely with OpenX Technologies on an exchange that would allow companies to bid on advertising space within applications on its devices.
According to Daniel Park, Vice President of Samsung’s Media Solution Center, “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.” According to OpenX Chief Executive, Tim Cadogan, “this is the first time any device manufacturer has entered the ad tech space in this way. It is becoming very clear the principals in the mobile space that advertising is going to be a very important part of the revenue mix.” It apparently took Samsung roughly a year before choosing the right company to go with. OpenX currently makes $100 million in annual revenue and is contemplating further moves into the mobile advertising industry. The finished AdHub Market is expected to arrive in the second half of this year.
The move leaves Samsung in a strange competition with Google, which makes the Android mobile operating system that has helped the handset maker rise in the first place. Since the software is free, Google relies on the revenue from advertising on Android platforms in order to profit from the platform. The AdHub Market would conflict with Google’s interests here but we’ll have to see if anything is done about it upon its release. The other thing that remains is how successful Samsung’s iteration of the service would be. Apple’s version, iAds, have failed to gain a significant amount of buzz but the Cupertino California company is in the process of revamping it as well to make it more appealing.
Source: The Wall Street Journal