Not satisfied with being the leading global supplier of smartphones, Samsung Electronics (OTC: SSNLF) is going into the mobile ad network business. The company yesterday announced a partnership with OpenX Technologies Inc., a privately held company that provides the advertising platform.
The new Samsung/OpenX network is called the Samsung AdHub Market and is scheduled to launch in the second half of this year. The service will go head-to-head with iAds from Apple Inc. (NASDAQ: AAPL), AdMob from Google Inc. (NASDAQ: GOOG), and recently public Millennial Media Inc. (NYSE: MM).
So far, the mobile ad market is more promise than reality, but most observers expect the market to become huge. But there’s no denying that Samsung has made a shrewd move here, as it tries to insure its margins on Android-based handsets and prepare for the day when Apple might select another supplier for all those iPhone and iPad microprocessors and screens.
Alas, for Millennial Media, Samsung’s announcement has pushed the shares to a post-IPO low of $19.17 so far today. The shares are currently off -6.1% at $19.80.