Smart TV hit Samsung·LG…

As’Zipcock’ becomes common due to Corona 19, a new advertisement market that provides customized advertisements by analyzing smart TV viewing patterns is expanding. [사진 픽사베이]

Samsung Electronics and LG Electronics clash once more in the’customized advertisement’ market through smart TVs.

According to the home appliance industry on the 22nd, Samsung Electronics and LG Electronics have started in earnest in the business of expanding the free channels operated by their smart TVs into advertising platforms. Just as the advertisements related to the user’s search word are exposed on Naver, Facebook, Google, etc., advertisements related to programs frequently viewed by viewers are transmitted to their smart TV channels.

Currently, the two companies are operating their own channels on their smart TVs since 2015. Unlike Internet multimedia broadcasting (IPTV) or online video service (OTT), which charges a monthly fee, the channel allows you to enjoy movies, dramas, entertainment, news, and sports for free if you connect the Internet. There is no need to sign up for a separate membership or connect a set-top box or cable.

Samsung Electronics is operating’Samsung TV Plus’. It provides 742 channels in 13 countries including Korea, the US, Canada, the UK, France, and Germany. This year, it plans to double the number of service countries. Overseas, it provides popular local content for each country. In particular, it is gaining popularity in the US by providing additional Korean movies and K-pop content.

Samsung TV Plus installed on Samsung Electronics’ smart TV. [사진 삼성전자]

LG Electronics is servicing 1617’LG channels’ in 14 countries. Especially, Korean Wave content such as’YG TV’ of YG Entertainment, which is a member of the world-famous girl group Black Pink,’Mubit’, a K-pop video platform, and’Mokbang TV’, a K-food channel, are popular. An official from LG Electronics said, “As of the end of last year, compared to 2018, the number of channel users increased by 100% and service countries increased by 64%.”

It is not just customer service that the two companies offer free content. It is because the content is provided for free and it is possible to make money by exposing advertisements.

An industry insider said, “The two companies are operating in the form of having several agencies in the region, presenting advertisement quotas, and the agencies seeking advertisers.” “Samsung and LG analyze the viewing history of consumers through their own algorithms, Among the advertisements, advertisements suitable for the taste of the viewer are selected and transmitted.”

LG Electronics acquired Alphonso Inc., a TV advertisement and content data analysis startup headquartered in Silicon Valley, USA in January. [사진 LG전자]

The advertising market through smart TV is expected to grow in the future. Industry analysts say that the number of people watching TV has increased as the life of’Zipcock’ has expanded due to Corona 19, and the ad reach rate has also increased. In addition, the smart TV accounts for 84% of the total TV sales in the global market. 90% of Samsung and LG’s TV shipments are smart TVs.

According to market researcher eMarketer, the TV advertising market reached 70 billion dollars (about 77 trillion won) as of 2019. Customized TV advertisements amounted to only 2 billion dollars (about 2.2 trillion won), but the market is expected to grow steadily.

Accordingly, the’advertising war’ between the two companies is no less than competition in TV sales. Samsung Electronics is rearranging its camp by hiring a large number of customized advertising experts from the game and portal industry. LG Electronics’ acquisition of’Alfonso’, a data analysis company in Silicon Valley, USA last month, is also a strategy to grow customized advertisements for smart TVs.

However, there are obstacles for Samsung and LG to reveal and expand their advertising business. Shin Min-soo, a professor of business administration at Hanyang University, said, “If smart TV’s own channel is monetized, it is no different from general OTT operators.” “I pointed out.

Reporter Park Hyung-soo [email protected]