Samsung takes on Google with ad platform

Korean handset vendor Samsung has launched its own mobile advertising exchange, to rival those set up by Google and Apple, as well as plays from several mobile operators.

Samsung AdHub Market lets companies buy advertising space on mobile devices from either app developers or Samsung directly. The exchange sees Samsung stepping up its rivalry with Apple, which runs its own iAd network, and also long-serving Android partner Google, which sells advertising space on its platform through its AdMob exhange.

Samsung did not provide details on how AdHub Market will compete for business with AdMob.

“The new exchange enables advertisers worldwide to purchase mobile inventory from mobile developers and Samsung Electronics within a closed marketplace environment, allowing easy targeting of desired audiences,” Samsung wrote in a statement.

Nick Dillon, analyst at Ovum, believes the move indicates a growing power struggle between Samsung and Google.

“It seems to be quite a perilous relationship at the moment, which could go one of several ways. At the moment, Samsung is reliant on Google because Android is really driving its smartphone sales. It has a vested interest in Android continuing to improve. At the same time, the majority of Android smartphone sales are Samsung devices, so Google’s very reliant on Samsung as well.”

“There are rumours of Samsung making demands over the future direction of the platform and, being in that position of power, it probably has more sway than other handset manufacturers.”

Earlier this year, Samsung announced the formal launch of Samsung AdHub for SmartTV advertising, enabling brands to deliver 3D, video, and other interactive advertisements into the living room via Samsungs SmartTVs.

Samsung AdHub Market is powered by OpenX and slated for release in the second half of 2012.