Samsung jumps into the billion dollar mobile ad network game

April 4, 2012

The new Samsung AdHub Market, Powered by OpenX is set to be launched as a private exchange available specifically to advertisers looking for mobile ad inventory on smartphones and tablets. 

And there may more ad network shoes to fall. Samsung said Adhub is expected to launch sometime in the second half of this year and is part of its vision to offer sophisticated targeted solutions to advertisers. 

Using a real-time bidding model, the AdHub exchange is designed to let app developers get the most from their ad revenue by selling their inventory to buyers who compete for each impression in a real-time auction with a minimum floor price. 

“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, VP of Samsung’s Media Solutions Center. “To this extent, we believe RTB (real-time-bidding) can play an important role in motivating all players and we’re delighted to partner with OpenX and use its excellent technology as the foundation for it.” 

The opportunity for Samsung, even in a crowded field of ad networks, is huge. Gartner estimates worldwide mobile advertising revenue in 2011 was $3.3 billion and is on track to grow to $20.6 billion by 2015 —  a 520% growth rate in less than five years. Although North America and Western Europe are regions where mobile advertising budgets will likely grow most in coming years (representing 28% and 25% respectively by 2015), Asia/Pacific and Japan will continue to dominate the global market share with 33.6% of the mobile advertising budget in 2015, according to Gartner. 

This was not the first “AdHub” Samsung has announced. Earlier this year, the company launched Samsung AdHub for SmartTV advertising, designed to let brands deliver 3D, video, and other interactive advertisements into the living room via Samsung’s SmartTVs. 


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