Samsung to launch first private mobile ad exchange

Samsung Electronics has partnered with OpenX, a digital advertising technology company, to create Samsung AdHub Market, the first private mobile ad exchange, said OpenX CEO Tim Cadogan. The exchange, which OpenX first announced yesterday at ad:tech San Franciso, is expected to be available beginning in the second half of this year.

“This is the first time one of the big device players comes directly into this part of the ad-tech space,” Cadogan said. “There are maybe a couple other smaller players doing this, but none of the big guys.” 

The new real-time bidding (RTB) exchange allows advertisers worldwide to purchase mobile inventory from mobile developers and Samsung Electronics within a closed marketplace environment to target desired audiences. Bidders can compete for each impression in a real-time auction with a minimum floor price.

Because the exchange is private, Samsung can choose which ads are the most relevant and therefore which bidders get to participate in the bidding, Cadogan said.

The OpenX CEO said the companies have been working on the project for about a year. Cadogan said Samsung decided to enter the space for two reasons.

“The primary reason is that there is an understanding that adverting revenue stream is going to become a more important part of the economics of mobile,” Cadogan said. “Second is the recognition that the world of real time ad trading is growing very quickly and becoming more important. To be able to leverage that and effectively embed that into mobile relatively early in the life cycle of adverting could be really important thing.”

The exchange builds on Samsung’s goal to profit on targeted advertising. In January the electronics manufacturer also launched Samsung AdHub for SmartTV advertising, which allows brands to deliver 3D and video ads to consumers.

“With the OpenX partnership, Samsung AdHub is expanding its capabilities to include an integrated RTB mobile market to capitalize on the mobile advertising opportunity,” the release stated.

Samsung declined to comment.

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