Core Insights - The article discusses how hardware manufacturers, particularly HP, are transforming their devices into advertising platforms to capture advertising budgets in a saturated market [1][2][5]. Group 1: Advertising Platform Development - HP has launched the "HP Media Network," which covers over 100 million devices and reaches 830 million monthly active users globally, with 160 million monthly active users in the U.S. alone [3][4]. - The network is expanding by approximately 2 million devices each month, indicating a steady growth in its advertising reach [3]. Group 2: Advertising Offerings - HP is selling various advertising products, including system-level native ads (like "Toast" notifications), brand exposure through email and social media, and partnerships with ad tech companies for external placements [4]. - The "Toast" ad format achieved over 5 million impressions and a 2.6% click-through rate during the 2024 holiday season, showcasing its effectiveness [4]. Group 3: Market Context and Competition - HP's entry into the advertising space reflects a broader trend among device manufacturers facing stagnation in traditional PC sales, particularly against competitors like Apple and Lenovo [5][6]. - Samsung's advertising platform has already generated significant revenue, indicating the potential profitability of this model for hardware manufacturers [5]. Group 4: User Engagement and Data Utilization - With increased usage of PCs for streaming and remote work, HP estimates users spend over 3 hours daily on their devices, creating a natural environment for advertising [6]. - HP's ability to collect first-party data allows for precise targeting of ads based on user behavior, enhancing the effectiveness of advertising campaigns [7]. Group 5: Future Implications - The shift towards advertising on devices may redefine the user experience, potentially transforming PCs into platforms with algorithmic recommendations and interactive ads [8]. - HP's strategy indicates a move towards a closed-loop ecosystem combining devices, content, and advertising, positioning itself as more than just a hardware manufacturer [9].