Samsung will launch a new mobile ad network service, which will provide the company's own ads on its smartphones and tablets. The service will be called the Samsung AdHub.

Announced on Tuesday, Samsung said the service is in conjunction with OpenX.

With Samsung being a leading maker with a range of top-tier Android devices, such as the upcoming Samsung Galaxy S3, the service will compete with Google's own ad service: ADMob. "In an Oct 2011 study by Xyologic, 89 percent of the top 1,000 Android apps that used mobile advertising as a monetization method used the AdMob SDK," PCMag report. Advertising can be bought from Samsung and developers.

By extension, then, Samsung will likely use the service for its apps and could integrate the service with its devices (though this has neither been confirmed nor denied). Prior to announcing AdHub for mobiles, the service was announced for SmartTV Advertising: video and 3D ads can be delivered through Samsung's Internet-connected televisions.

Samsung had previously estimated worldwide mobile advertising revenue at $3.3 billion in 2011, estimated to grow 520 percent to $20.6 billion by 2015.

"Samsung is empowering both the developer and the advertiser, by creating a win-win solution, in which the app developer is able to achieve higher revenues and advertisers are able to reach their marketing goals. To this extent ... we're delighted to partner with OpenX and use its excellent technology as the foundation for it. The Samsung AdHub team is continuously working to offer innovation and value in the advertising market," said the vice president of Samsung's media solution center, Daniel Park.

Users can bid real-time on advertising, which Samsung say will help advertisers maximize their revenue.

Integration into the OS is similar to Apple's ad service, iAd. Apple claims that its advertising provides the best revenue for developers because the service works closely with the operating system.

"Samsung hasn't disclosed the terms of its deal with OpenX. But if Apple's iAd is any indication, getting advertisers and developers to buy into this exchange over other advertising platforms may not be as easy as it sounds," CNET notes. The reason for this because Apple ran into similar problems, reducing the buy-in cost for iAd from $1 million to $100,000.

Samsung says the service will launch during the second half of this year.

(reported by Jonathan Charles, edited by Surojit Chatterjee)