Samsung’s new Smart Hub could transform connected TV advertising

Samsung's rebuffed Smart Hub demonstrates the trend to provide TV buyers with the option to access videos on the web from their screens.

Posted on Jan 10, 2013 by YuMe

Samsung recently re-released its Smart Hub connected TV platform with an improved user interface and a variety of new features, which tech critics believe will drastically change the playing field for connected TV advertising, according to Video News and Advertising.

"The new Samsung Smart Hub will change the way you discover content," said Samsung's Tim Baxter, the president of the consumer electronics division, at a recent product launch, reported TechnoBuffalo.

While users once had to activate their TV's connected functionality, the redesigned interface is now the first thing users see when they turn on their Smart Hub TV. Smart Hub's connected TV interface supports five home screen panels for apps, browsing the web and other features.

The first panels shows users what is currently playing on regular television. Smart Hub features channel choices customized based on the user's preferences. The second panels features on-demand movie and television show offerings users can stream directly to their screens.

The third panel features users' personal photos, video and other content stored on devices that are virtually connected to the TV. The fourth window allows users to view videos trending in their social networks. The last panel houses Samsung's apps.

Introducing T-Commerce and S-Recommendation"We're introducing an entirely new way to interact with your TV," Baxter said, "We're calling it T-Commerce."

Samsung is meshing content services and consumer goods marketing. Users will be able to buy products featured in the programs they're watching.  This represents a huge opportunity in the advertising realm, as it calls for a new form of ads once only imagined in Sci-Fi fiction.

Meanwhile, the S-Recommendation feature gives viewers time-specific personalized content recommendations. Video Ad News predicted Samsung will soon include sponsored recommendations, through which broadcasters can advertise content to demographics that watch similar shows. This may even be a chance for other brands to boost sponsored shows and videos that contain their ads.

Some figures to keep in mind
Samsung's rebuffed Smart Hub demonstrates the trend to provide TV buyers with the option to access videos on the web from their screens.

In a survey of more than 700 connected TV owners, YuMe found viewers prefer ad-supported content over subscription or pay-per-view videos. Streamed movies and shows hold a lot of promise for internet video advertising, as 90 percent of respondents reported noticing ads when watching connected TV, the majority interact with the ads and one-fifth of those subsequently purchase the product advertised.