Samsung Ads connects OTT, linear ad inventory for brands
- Samsung Ads now lets marketers connects ads across its over-the-top (OTT) and linear inventory, a Samsung executive told AdExchanger. The electronics giant, which can reach viewers on its mobile devices, smart TVs and desktop computers, sells its ad inventory directly, unlike other makers of smart TVs that license their first-party audience data.
- It's not clear if Samsung is the only company that can connect OTT and linear inventory, as all makers of smart TVs can gather content recognition data from their devices and determine whether viewers saw an OTT ad. However, Samsung apparently gathers data more quickly to help marketers adjust TV ad campaigns "in flight," AdExchanger reported.
- Samsung gathers audience data from viewers who opt to provide their personal information when they set up their smart TVs. Tom Fochetta, the head of Samsung Ads, declined to disclose how many viewers have provided their data.
Samsung Ads has unique advantages with a parent company that's the top maker of mobile devices and smart TVs in the U.S. The company can reach as many as 200 million devices, including 32 million smart TVs, with linear and OTT ad insertions, while offering marketers the capability to adjust their campaigns on the fly. As millions of households cancel their cable and satellite subscriptions, and instead sign up for OTT services that have ad-supported packages such as Hulu, Roku and Pluto TV, Samsung Ads may be able to help brands that are looking to reach a mass market. It's not clear if the capability extends to smartphones but such a move is likely something that Samsung is exploring as more consumers watch video from their phones. The company also has cross-platform capabilities to reach audiences through gaming consoles and other connected devices.
The Samsung Ads website touts its capabilities without naming specific advertisers. The company claims to have boosted the usage of an OTT app 10 times and increased the traffic for an automotive brand 4.4 times.
OTT ad insertions are especially significant as cord-cutting rises 32.8% this year to 33 million U.S. adults, per eMarketer predictions. About 147.5 million people watch Netflix at least once a month, followed by Amazon Prime Video (88.7 million), Hulu (55 million), HBO Now (17.1 million) and Dish's Sling TV (6.8 million). About 70% of cable and satellite subscribers said they don't get enough value for their subscription fees, Deloitte's 2018 Digital Media Trends Survey found. Just over half of pay-TV customers keep a subscription solely because of bundling with a broadband internet connection, per Deloitte.