Epam Empathy Lab Discovery is Still Primary Purpose for Social TV
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Epam Empathy Lab Discovery is Still Primary Purpose for Social TV

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We’re now past the point where experts and authorities in mass media channels are the primary arbiters of quality. Our extended social circles, often comprised of a mix of people we know personally ...

We’re now past the point where experts and authorities in mass media channels are the primary arbiters of quality. Our extended social circles, often comprised of a mix of people we know personally and people we only know virtually, now have equal–or greater influence over our media consumption choices.

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Epam Empathy Lab Discovery is Still Primary Purpose for Social TV Epam Empathy Lab Discovery is Still Primary Purpose for Social TV Document Transcript

  • Discovery is Still Primary Purpose for Social TV Valeria Maltoni Senior Director of Strategy EPAM Empathy Lab We’re now past the point where experts and authorities in mass media channels are the primary arbiters of quality. Our extended social circles, often comprised of a mix of people we know personally and people we only know virtually, now have equal–or greater influence over our media consumption choices. 101 East 8th Ave, Suite 201, Conshohocken, PA 19428 ©2013 All Rights Reserved | EPAM Empathy Lab
  • Today you have more sources of information on movies and TV shows than you can ever hope to read. You also have more ways of watching entertainment programming; including catching up on your friend’s commentary while a show is on. Why is this significant? Because the success of a movie or show does not rely solely on the recommendation of experts and authorities – in fact, many a critically acclaimed movie has not done as well in box office sales. Conversely, movies that were initially panned by the critics, reached cult status among viewers – Inception, John Carter, The Girl with the Dragon Tattoo trilogy, and Snakes on a Plane manage success through engaged fan bases. Does online buzz translate into higher TV ratings? The correlation is significant, even as it still doesn’t prove causality. According to October 2011 research by Nielsen NM Incite, there is a relationship between online buzz and media ratings. A 2012 study by SocialGuide with Nielsen analyzing tweets about live TV by 32 million unique people in the U.S. confirmed a relationship between Twitter and TV ratings. Study: Percent increase in twitter volume associated with 1% increase in TV ratings Of course, Oprah still matters. The buzz from ordinary people can’t bring the massive hit she can to a show at a mere mention. A movie or a show still spreads in awareness thanks to the visibility gained through the recommendation of celebrities and experts. However, the definition of influential has changed quite a bit with social networks to include the people formerly known as the audience. Members of the community with strong ideas and a passion for a show and its characters can become instant opinion leaders. Engaged fans identify with the characters and can be a real boom in amplifying reach and involvement, often driving as much traffic to a site or show than a marketing push, and helping keep a show like Community (NBC, client) with 6.1 million Twitter followers from being canceled. [ Members of the community with strong ideas and a passion for a show and its characters can become instant opinion leaders. ] The point is when we can see what others like us are talking about and see the opinions and ratings of friends, we will likely check it out. It’s human nature. The perception of what others are doing is essential to the spreading of ideas in social media. Thanks to broadband connections and social networks, today we can see what other people are talking about and watch what they are watching. 2 EPAM Empathy Lab Source: Nielsen, © 2012 The Nielsen Company The study found that an 8.5 percent increase in Twitter volume corresponds to a 1 percent increase in TV ratings for premiere episodes, and a 4.2 percent increase in Twitter volume corresponds with a 1 percent increase in ratings for midseason episodes among18-34 year olds. A 14.0 percent increase in Twitter volume is associated with a 1 percent increase in TV program ratings for 35-49 year olds, reflecting a stronger relationship between Twitter and TV for younger audiences.
  • With social networks, our circle of friends has expanded to include other people who are as passionate about a story or a set of characters as we are. We can choose to create additional content to complement the entertainment experience, or just lean back and watch a show alone, knowing that later we can indulge our social nature and curiosity before hitting the virtual water cooler. It’s now a matter of routine for people to have a mobile device in hand while watching television. Smartphones or tablets are being called second screens because they are devices and applications that allow TV viewers to interact with the content of a show – and with each other – before, during, and often after a show or between seasons. Social TV Facts In February 2013, to turn mentions into dollars Twitter acquired Bluefin Labs, a social TV analytics company that provides data products to brand advertisers, agencies, and TV networks. Applying machine learning and cognitive science research, Bluefin Labs tracks 505 million activities/day to mine reactions to shows and ads. Social TV is the term coined by the industry to describe the action of connecting with others in social networks about a specific program. Who engages with Social TV content? While casual fans need more reasons to become involved with a show – for example, tools to ramp up their knowledge about the characters, maybe introductions to the show’s tribe – fans who are already involved with entertainment content drive their own experience and often that of their friends. Involved fans are more active in talking about entertainment and programming. They: Watch broadcasts, stream/buy and binge-watch shows, subscribe to content and participate in special promotions Love engaging with actual celebrities and TV shows characters Share social signals, show off by talking about the shows, sharing links to branded merchandise, discussing a plot or storyline and emulating favorite show characters by using sponsors’ products Teach other people to be a fan by inviting them to watch the show, talking about it on Twitter and other social networks, explaining the show’s plot and advocating for the characters and storyline in social media 3 EPAM Empathy Lab MIT Technology Review listed social TV as one of the 10 most important emerging technologies in 2010. Nielsen purchased Social Guide, aa company that analyzes the social impact of linear TV in November 2012. It announced a partnership with Twitter in December 2012. Wired magazine named Social TV one of six “trends to expect” in 2011. Media industry analyst, Jack Myers, predicts social TV could be a $12 billion market by 2020. Spend time, attention, and money consuming content and experiences by streaming/buying and gifting shows seasons, driving TV ratings and broadcast license revenue and generating ad impressions across every advertising medium During a show, the fan might 
be engaged while watching the broadcast on TV or while out and about on a mobile device or tablet. The fan may be engaged socially with other fans at a group gathering or on Twitter or Facebook Consume and create content Given this level of involvement, fans want more content associated with their favorite shows, and beyond the show’s season leading up to next season. They also want more ways to interact with the show’s characters and storyline. Fans can influence the individuals and groups who need a personal and/or close connection with a show to become interested: “Eight of my friends are watching Burn Notice, I should check it out.” How viewing habits have changed Having a mobile device on hand has become an integral part of the TV watching experience. Nielsen NM Incite 2012 Social Media Report says 41 percent of tablet owners and 38 percent of smartphone owners use their
  • Usage: Simultaneous TV/Mobile Device Usage, U.S. Program Info Product Info Looked up information related to the TV program being watched Looked up product information for an advertisement seen on TV 15% 23% 26% 35% Coupons Looked up coupons or deals related to an advertisement seen on TV Shopping Made a purchase while 12% ??? 22% 45% 24% Social Visited a social networking site during the program 38% 44% Source: Nielsen, © 2012 The Nielsen Company device daily while in front of a television screen. Use of social networks tops the list of concurrent activities, including looking up relevant program and product information. While Twitter has emerged as a key driver of Social TV interaction, with nearly a third of active users tweeting about TV-related content (June 2012), there is still opportunity to offer a richer experience inclusive of show-related content and viewer interaction. Second screen apps are engaging viewers based upon the opportunity to access exclusive content related to the show and to interact with other fans in a more intimate interface. Both are strong reasons why show fans would want to download and use it. Nearly a quarter of individuals aged 18-34 use social media to comment on what they like and dislike about a storyline while watching TV. Adults aged 35-44 are the most likely to discuss television programming with their social connections. According to recent research by Google, every screen is becoming a “mini-connected TV.” Tablet users are increasingly propping the tablet up a few feet away and leaning-back to watch video for an hour without touching the device. If you ride the subway in Seoul, you’ll 4 EPAM Empathy Lab see most passengers holding their phone in the palm of their hand and watching video for the entire length of the ride. Seoul’s subway is completely covered, and entirely in 4G - the connection is good enough to watch high-definition YouTube videos without buffering, downloadable at speeds above 4 megabits per second. There’s also local television reception everywhere, that can be picked up on all cell phones equipped with antennas. The television experience is becoming ubiquitous. And with technologies like Apple’s Airplay, mobile devices may push experiences directly to Connected TVs, or services that render TV experiences in the cloud. Regardless of how the TV experience is delivered, it is defined by the paradigm of discovery, just as search and communication define the desktop web experience. The winners in the Connected TV space will be a new crop of “TV-first” companies that will carve-up the TV opportunity by focusing on delivering delightful Discovery experiences. Early discussions about this phenomenon are focused on what industry observers call the second screen ecosystem in an attempt to capture both the ability to engage and interact with programming content while viewing it, and experience that includes Social TV and
  • the ability to watch programming any time, anywhere, on any device, which is in fact more properly defined as multi-screen.In both cases, multi-channel, immersive experiences are here to stay. of TV viewers use another device at the same time. Most often tablets. In the book The Art of Immersion, Frank Rose provides examples of the deep interactive immersion offered by alternate reality games, which have the potential to become very engaging to the point of fans controlling the story. Engaged fans identify with characters That’s when Helen Klein Ross started tweeting as Betty Draper. She didn’t know the other characters, however she knew the ad business. She completely immersed herself in the character, watching the show, taking notes, and extending it on Twitter. Carrie and Helen were relentless about being true to the period, their characters and growing the following. It was the passion and enthusiasm Carrie and Helen brought to the fore that drove such a large following of the Twitter accounts. They both started following anyone who tweeted anything about Mad Men as Peggy and Betty, respectively. That in turn had those fans start following the other characters. Study: The Metrics of Mad Men AMC’s Gross Ad Revenue License Fee Revenue Average Subscribers 150 Over three years ago, Mad Men show creators learned about the power of passionate fans first hand on Twitter. 125 Paul Isakson, a brand planner at an agency in Minneapolis, started tweeting as @Don_Draper. After just three days, Don, Peggy and Joan had a big enough following to get the attention of AMC. Based upon the following garnered by those accounts and the buzz generated in the twittersphere, by the end of the show’s second season, every major and minor character had an account on Twitter. The second Twitter @bettydraper, @PeggyOlson stream to launch was tweet actively and engage for Joan Holloway’s with the show’s followers to this day. character. The person behind it never came forward publicly. Carri Bugbee, who runs a marketing firm in Portland, OR, decided she wanted to be Peggy Olson. Bugbee confided in a friend, Michael Bissell, who she then convinced to start tweeting as Roger Sterling. 100 This was all done spontaneously, without the authorization of AMC, or the show’s creator, Matthew Weiner. nine of the characters from the show turned up on Twitter, building buzz for Mad Men. 5 EPAM Empathy Lab 75 50 25 2007 2008 2009 2010 2011 2012 Since Mad Men debuted on AMC in 2007, the cable channel’s subscriptions, licensing fees, and ad revenue have all grown dramatically. In other words, quality original programs mean big money. Source: Wired Magazine 2013 What really made any of this possible is the excellent story and character development done by Matthew Weiner, his team, and the cast and crew who bring the story to life on screen. Without such a deep and complex story full of all too human and unpredictable characters, there would have been no interest in the Twitter
  • drivers. We are getting close to measuring how online buzz translates into higher TV ratings, and can now track how the TV experience doesn’t end when a show ends. accounts. The show is slow to reveal what’s going on in the characters’ lives and that made fans want to learn more about the characters. Social buzz influences viewing decisions Layers of communities of interest extend not only around personal friends and followers, but also among those who share common interests in a particular brand, Hulu, Netflix, Apple TV, Amazon Prime, Roku, iTunes, smartphone, tablet – there are many more ways to keep watching, and building buzz for a set of characters and a story plot. This drives viewership back on the first screen, or television, when the season resumes. HBO American television series Girls was a ratings dog until it became a “must see” show in its third season thanks in big part to social word of mouth. 76 % Television lends itself to social-network multitasking more than any other medium does. While watching tv Of those who post about TV Shows Do so while watching programs Live 79 83 41 % always or sometimes visit facebook % surf the web on sites other than social networking sites % tweet about the show they are watching & 51 % Post on social networking sites while watching TV to feel connected with others who might be watching celebrity, event, or show. This ‘social web’ of interaction leads to rapid exchanges and comparisons of news, views, content purchases, favorite, and negative experiences. As for ad revenues, TV remains the best way to tell a brand story to something approaching a mass audience. With greater knowledge of who is watching what and when, this medium will change. It is already changing or being changed. Recent developments in addressable advertising TV are exemplified in the Allstate push for renters’ insurance, a relatively niche product. During the MIPTV 2012 keynote, Josh Sapan, President and CEO, AMC Networks talked about how the digital medium has shifted the way programming is viewed as well as what people are willing to pay for. While organizations cannot own these conversations, they must become aware of them, learn from them, provide service when issues appear, and feed them with useful comment and content. In the talk, Sapan discussed how AMC recognizes the emerging binge-watching patterns for drama shows, and acknowledged the shift from appointment TV driven by scheduling and connection TV driven by the fans desire to watch the shows they love when they want to. In addition to participatory experiences, social audience drivers include content discovery, and an ongoing, sharable, interactive experience, as defined by the viewer. He also admitted that Netflix, Hulu, Amazon, and Google TV have played a role in driving interest in new seasons by letting people binge-watch past episodes. On the entertainment media side, show ratings, ad revenue, and digital commerce are important business 6 EPAM Empathy Lab
  • Pay TV Whether delivered by cable, satellite, or Telco, according to AMC’s Sapan, Pay TV continues to be the sector to experience the greatest growth in all of television. For all the talk about how TV is the least used of all screen, teenagers today are watching more, not less TV, he said. Viewers are watching more paid TV than they used to in the past. In many cases, these are people who never paid for cable because they don’t see it as a necessity. The industry calls them “cord-nevers”, and its executives admit they are facing a new generation that is approaching entertainment content very differently than previous ones. According to Sapan, content drives authentication. And it’s not just any kind of content – original content drives the “hate to do without it” success of paid programming. Viewer experience and engagement are the new drivers. This Means: Entertainment content, in whatever form it takes – online, a movie, a download, a game, a recording, an e-book, video, site or blog – and those who create and distribute the content MUST connect with the audience directly, wherever they are. Direct to audience, on whichever screen/format they choose to view entertainment, means understanding their preferences, those of their friends, as well as how they are connected to what is popular and trending. Beyond addressing a show’s tweetability, this means rebuilding the engagement model with digital / technology / data at the core as a way to remain connected with audiences continuously, and allow fans to get more deeply involved with the show, series, and even with the ads, if they so choose. Shows like the Sopranos, Game of Thrones, Homeland, Breaking Bad, Walking Dead, and Mad Men, to name a few, gain a following due to strong character development and storylines. Fans develop a very personal connection with the show’s characters, which leads to... Implications for entertainment media 1 Personalization must become table stakes. Beyond personal customer details and demographics, learning about behaviors, and current mobile context such as location, proximity or mode of access. Combined with their experience of social interaction this can improve the overall customer experience and loyalty. This also leads to simplicity, which helps improve the discovery process – what program to choose among a growing catalog and how to find them. Intelligent bundling andtailoring streamlines the process. 2 The Social Network revolution is here and participation is not optional. Changes to viewing behavior means that customers no longer make decisions in isolation. This spells opportunities for content providers to enable direct to consumer entertainment media content sales through pull. Feedback from audience engagement enables gathering further insights on viewer content preferences. 3 7 Connectivity across all devices – anywhere, anytime – is a must. It’s a new multi screen world. One of Netflix’s core advantages over competitors is its ability to stream on nearly every connected device. Creating a consistent and uniform experience across hundreds of devicesis a significant technical challenge, and content licensing deals will need addressing, because the connected experience will offer a major competitive advantage. EPAM Empathy Lab
  • Stats: 150,000 downloads in one month. 3 million users who stream content from 80 channels. Estimated savings to Liberty GIobal, $1 billion. Case Study: Liberty Global Liberty Global (client) is the largest cable company in the world, with operations in 14 countries, primarily in Europe and Latin America. They deliver 34 million television, broadband Internet, and telephony services to 20 million customers through subscription. A market-leader in next-generation networks and innovative technology platforms, Liberty Global [ ] Empathy Lab was Critical to the success of this complex digital entertainment experience. We look forward to Empathy Lab’s continued guidance and support as we rollout enhanced features & new platforms. — Bob Greene, Liberty Global recently launched Horizon.tv, an immersive TV-watching experience that allows customers to share content across multiple devices. 8 EPAM Empathy Lab Five critical factors were instrumental in the successful outcome of this project: 1 Starting with a comprehensive business strategy to address content and device type in the multi-language, multi-country environment in which the company operates. 2 Addressing how to approach the user interface and the product design user experience. Multi-device applications introduce the need to create a differentiated experience with the goal to engage, delight, and surprise users through personalization. For example, you can start watching a movie on your set-top box and then continue watching it on your mobile device. 3 Designing an emotional connection and response throughout the experience, no matter the device and context. This required a deep understanding both of the user and the media, to carry over the magic of the set-top box into a device where 50-70% of the screen is taken up by images. 4 Building and managing the program while gathering the requirements. Developing a full prototype based upon use cases allowed the team to articulate what was needed clearly and keep both program development and engineering working toward the same solution. The prototype served as the project documentation and a tool to keep the team laser-focused.
  • About the Author Valeria Maltoni, Senior Director of Strategy, EPAM Empathy Lab Valeria has been helping organizations develop strategies to connect brands and customers through content, community, and commerce in digital and social for more than 20 years. She has worked with Fortune 500 clients and fast growth organizations in five industries, including Target, Allstate, GE Appliances, Anheuser-Busch InBev, SunGard, Willis International, and the Project Management Institute (PMI). For More information visit: epam.com/empathylab EPAM Empathy Lab is a digital strategy and experience design firm with a global user experience development team. We build products. Our work is based on: Meeting the needs of end users by understanding what they are trying to do through behavioral research; Achieving business objectives by supporting client Contact us David_Larkins@epam.com programs through strategic consulting. Plus, translating data into insights that inform measurement and tactics through experience planning and optimization; Delivering world-class software engineering by shaping products in code through experience development. 9 EPAM Empathy Lab ©2013, All Rights Reserved. Follow Us twitter.com/EmpathyLab