What Display Daily thinks: It doesn’t matter what we think. The new model of turning TVs into ad platforms and then having consumers pay at the store and at home for the same set is here to stay.
Is it great? No, it’s a mild rip-off, at least for the consumer. Imagine my surprise when I pay for a premium TV with all the AI wizardry and the custom interface, and software, and I get bombarded with ads, too. The joy of paying for the privilege to having advertisers run the full color gamut of OLED? And judging by the size of Samsung Ads platform, it is a serious effort to win over brands and agencies.
Is that just a gripe? Yes, of course. But, let’s dissect this approach and see why it has points of failure. The first point of failure is that it is designed by execs for board members. That means that it sounds great in internal meetings and makes total sense when you are struggling to hit your targets on TV sales or need more margin or whatever the financial argument is for this kind of strategy. So, it’s not a customer fit approach to building a product that engages consumers but a management fit to find new ways of making money from stuff you have already sold.
The second point of failure is that it bifurcates your TV business into two diametrically opposed opportunities: sell TVs, sell advertising. Judging by Samsung’s organization, the selling ads is a separate concern to the selling TVs group. The ad people wait for the TV group to get them eyeballs, and then they sell more ads on the back of that.
The second point of failure is that neither group is incentivized to support the other group. There’s no real plan here to change TV selling strategies to increase ad sales or vice versa. The consumer gets treated like a useless idiot who’ll take whatever is given to them, higher TV prices, more ads, and damn what anyone might think. It’s one thing for Roku to put ads on their screen saves, the box costs tends of dollars, but a Samsung TV may cost thousands of dollars. Gucci isn’t putting Sephora discount coupons in every bad it sells.
The third point of failure is that either group, the ad seller and the TV seller, can bring the other down. A bad quarter for TV sales is a bad quarter for ad sales, and a bad quarter for ad sales is a bad quarter for the TV business. Is there any connection to ensure that one props up the other? For example, does Samsung have any way of dropping prices on TVs, pushing sales, and making up for it with ad sales? Theoretically, if Samsung shows user number growth, it leads to ad growth, and ad growth is going to be at margins that are beyond the reach, grasp, or hope of TVs. So, wouldn’t Samsung be better off giving away the razor, the TV set, to sell more razors, the ads?
It is unlikely that any consumer electronics company with that much invested in its hardware technology, like Samsung, would be able to sacrifice short-term TV profits in order to grow its user base for ad sales. The numbers don’t add up, and the business model is a complete turnaround from years of Best Buying it. But, it is also unlikely that you can build an ad platform without the intent of growing the number of eyeballs you can deliver. Argue as much as you like about the quality of the eyeballs on Samsung TVs, but advertisers have so many direct channels and platforms to choose between that size matters.
Which brings me full circle back to why this kind of thing irks me. It’s a cynical money maker, but fully justifiable because it’s kind of easy money – you are just charging indirectly for something that you have already been paid for once. And that’s the problem, you sold me the goods, and now you are selling me.
Samsung TV Plus Broadens Content Partnerships, Amplifies Advertiser Opportunities
Samsung TV Plus recently unveiled plans to expand its content lineup through strategic partnerships with major entities such as Warner Music, Mattel, and renowned sports leagues like MLB, PGA Tour, F1, AHL, and ONE Championship. This expansion signifies a concerted effort to diversify the available content on Samsung TV Plus..
The announcement also emphasized the opportunities available for advertisers to leverage the platform’s extensive reach and engagement. Advertisers can use Samsung’s AI and data-driven advertising solutions to target specific audiences effectively and achieve their marketing objectives. With the addition of new content and channels, advertisers have more opportunities to connect with viewers through tailored advertising campaigns.
| Cross-Platform Advertising | Samsung Ads now enables advertisers to connect campaign messaging across Connected TV (CTV) and mobile platforms. Advertisers can sponsor the Samsung News Galaxy mobile app, featuring curated Olympics content, with display and video ads in its top editorial news sections. |
| AI-Powered Performance Solutions | – Smart Acquisition: Designed for content partners, this solution leverages Samsung’s proprietary data and AI technology to efficiently acquire new users by delivering targeted ads at the right time. – CTV to Mobile: Tailored for partners with mobile apps, this solution utilizes Samsung’s Smart TV real estate and AI capabilities to drive user engagement and acquisition for mobile apps. It also facilitates ROI measurement through partnerships with top mobile measurement providers. |
| Enhanced Measurement and Targeting | Samsung Ads offers sharper measurement and targeting through Optimal Reach, leveraging proprietary data to identify gaps in reach and target untapped audiences across linear and streaming platforms. |
