Currently, it seems that Samsung is endeavoring to set its all effort to extend its business across the world. This time, what Samsung is planning, is beyond of our expectation. The South Korean company has decided to enter into the mobile ad business in order to have better exposure to its products. Is the company emulating what Apple and Google is doing right now? Yes, Samsung has planned to introduce its AdHub in amalgamation with Open X Technologies in the second half of this year. On Tuesday this week, the company promulgated that AdHub will allow advertisers to place ads on its mobile devices.
Vice president of Samsung’s Media Solution Center—Daniel Park—said, “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.”
I think this is the first time when any OEM company has decided to enter into the mobile ad space. Undoubtedly, as the penetration of Smartphone is increasing worldwide, it’s creating a great opportunity for mobile ad marketers. How advertisements are playing a crucial role in mobile space which seems from Samsung’s decision to launch AdHub? However, Open X generated $100 million annual revenue last year and it was seeking for a potential partner for further move into the mobile ad space, definitely, none of the options are currently better than the South Korean Company.
Samsung is currently world’s second largest mobile handset manufacturer after Nokia. Last year, Samsung shipped 327.4 million mobile handsets, among total shipment, the company sold 35 million Smartphone in just Q4 last year. In a recent survey, an average of three months period ending in February this year, Samsung was at the top in Smartphone vendors in the US. In February this year, Samsung alone dominated 25.6% of Smartphone market share in the US.
Indeed, entering into the advertising market, Samsung has become a great threat for Google, which developed Android mobile OS and helped the Korean manufacturer to grow its market share worldwide. It’s quite well-known that Android is an open source, which is available for free for everyone. Google is making the revenue from mobile ads on the Android powered devices. If Samsung will enter in this era, definitely, it will cut Google’s revenue worldwide. Previously, we have described how does Google generate four times more revenue from iPhone than its own Android. However, Apple’s iAd services are not so impressive as Google’s. Now, Apple is trying to make a better understanding between developers and advertisers in order to improve iAd services. Anyway, the decision of Samsung to embark its “AdHub” business is highly incredible.
