According to a new report quoting “people familiar with the matter”, Samsung is going to make a pretty unpopular move in Europe in the next few months. The Korean company will begin showing ads on its smart TVs in Europe, following a similar rollout that happened in the US in June of last year.
The tile ads will just suddenly appear in the main menu bar of the company’s newest smart TVs. Samsung will use software updates to activate the tile ads on older smart TVs. As for when this will happen, unfortunately there’s no more precise timeline to speak of at the moment than “in the coming months”. Samsung is reportedly working with agencies and its own ad sales team in New York to “expand its pool of advertising clients”.
If you’re wondering why it’s making this move, well, it all has to do with money naturally. Samsung dominates the TV market with 20% market share globally, and it sells around 50 million units each year. However, its profit margins from TVs are speculated to only be 3-5%, which really isn’t a lot. What’s more, market saturation and weakening demand mean less and less TVs are expected to be sold in the future, so Samsung needs to do something to diversify its revenue stream in the TV business. And apparently ads are the solution.
Source | Via