You Say You Want A Revolution How Television Is Changing For Good Graham Lovelace presentation to               September ...
Video: Samsung ‘Television has changed, wonder whats next?’            http://youtu.be/Orbzwoc3Xb0
How TV Is Changing• TV technology trends• Connected TV:    From TV makers    From service providers• Second screen apps an...
TV Technology TrendsTV displays that are:• Bigger and thinner
TV Technology TrendsTV displays that are:• Bigger and thinner• Sharp
TV Technology TrendsTV displays that are:• Bigger and thinner• Sharp, and getting  sharper: 4k
TV Technology TrendsTV displays that are:• Bigger and thinner• Sharp, and getting  sharper: 4k, 8k
TV Technology TrendsTV displays that are:• Bigger and thinner• Sharp, and getting  sharper: 4k, 8k• Adding depth – 3D
TV Technology TrendsTV displays that are:• Bigger and thinner• Sharp, and getting  sharper: 4k, 8k• Adding depth – 3D• Abl...
TV Technology Trends    ‘This is all very exciting to the    worlds biggest advertisers who    spend billions on TV advert...
Connected TV – From TV MakersTV makers’ holy grail:• Recurring revenues  beyond low-margin sale• Commercial approaches  br...
Connected TV – From TV MakersMonetisation includes:• Targeted ads:    Portal display    Recommended apps    In-app adverti...
Connected TV – From TV Makers         ‘I found the new Smart         Interaction – voice, gesture, and         facial reco...
Connected TV – From TV Makers         ‘Many of the key apps,         including Facebook, Twitter and         the web brows...
Connected TV – From TV Makers         ‘There are flashes of a great         future merging regular TV and         the web ...
Quick Take #1• TV makers are positioning themselves as the new gatekeepers:     Sourcing or producing content     Selling ...
TV Makers’ Holy Grail• What could possibly go wrong?    Consumers buy shiny new internet-enabled TV, but do    not connect...
Quick Take #2• TV makers’ ‘smart TV’ risks becoming a dumb idea• Consumers are complaining of a poor user experience:    S...
Quick Take #3• That does not mean connected TV is doomed to fail• The smarter players are the service providers offering  ...
Connected TV – Service Providers
Connected TV – Service Providers                   • BSkyB and News                     Corporation in                    ...
Is Apple About To Make A TV?
Is Apple About To Make A TV?       ‘Id like to create an integrated       television set that is completely       easy to ...
Is Apple About To Make A TV?         ‘This is an area of intense         interest for us. We’re going         to keep pull...
Is Apple About To Make A TV?• Granted US patent  for interface design• Integrates broadcast  channels with online• Record ...
Quick Take #4• Apple is unlikely to make a connected display:     Apple favours a ‘single global product’, TV tech is regi...
Second Screen   • Apps augment TV viewing:       Content discovery, participation       Input and control   • Synchronised...
Second Screen• Exclusive UK tie-up with ITV:     50,000 tags Britain’s Got Talent final     Shazam-enabled Pepsi, Cadbury ...
Second Screen• Loyalty programme for TV• Incentivises viewing by awarding points,  exchanged for gift cards, tickets,rewar...
Quick Take #5• Second screen apps offer opportunities for:    Data capture    Interactive advertising, highly targeted    ...
Second Screen ‘As much as Samsung and others have promoted smart TVs the reality is that consumers with tablets think thei...
Second Screen • Tablets are displacing PCs,   laptops and smartphones • Displacing small TVs • New place scenarios for TV
Second Screen• EPG with live social ratings  and a connected TV remote• Social networking platform• Infotags created by  s...
Second Screen ‘zeebox creates a direct channel between advertisers and consumers with powerful transactional capabilities....
Quick Take #6• Challenges for second screen:    Overcoming app overload – too many apps for the    same show competing for...
Video: Sky ‘Sky+ App for iPad’http://youtu.be/KG5tlvW0f3A
Social TV• People using social networks and social apps to:      Find, rate, share programmes      Chat with friends while...
Quick Take #7• Social TV generates data which can power:     New forms of programme discovery, bypassing operator’s EPG   ...
Content Genres Influence Activity                                         Focus not required                              ...
Social TV Analytics• Quantifying social  media commentary  mapped to TV  programming:   Volume (size and   share of voice)...
Social TV Analytics
Drive To Make TV ‘More Efficient’       ‘There’s a ton of waste in television       advertising. Advertisers demand that  ...
Drive To Make TV ‘More Efficient’       Data-driven demand coming from:Targeted TV advertising      Online video advertisi...
Drive To Make TV ‘More Efficient’      Data-driven demand coming from:Targeted TV advertising    Online video advertising ...
Drive To Make TV ‘More Efficient’           ‘Via connected TV platforms we           can do sophisticated forms of        ...
Quick Take #8• There is huge confusion over traditional TV advertising• Yes, there is scope for innovation:    Campaigns i...
The Future Of TV    ‘The new technology from    TiVo and Replay… will spy    on you, destroy prime time    and shatter the...
UK Television Viewing First Half 2012          Amount    Change Live broadcast (all channels, average day) 4hrs 1min     ↓...
The Future Of TV   ‘Contrary to some expectations,   technology has not shattered the   TV schedule, but rather made it   ...
The Future Of TV  ‘As well as satisfying our needs for  entertainment and information,  television is a key enabler of  an...
The Future Of TVWatching TV is the best way of relaxing at home
The Future Of TVWatching TV is a good way of bringing the family together
The Future Of TVWatching with others is more enjoyable than watching alone
Television Is Changing FOR GOOD• Technology, and the convergence of broadcast and IP is  driving change right across the t...
@glovelaceThank You!
How Television Is Changing For Good
How Television Is Changing For Good
How Television Is Changing For Good
How Television Is Changing For Good
How Television Is Changing For Good
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How Television Is Changing For Good

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Presentation given to members of the Norwegian Association of Advertisers (ANFO) on September 5, 2012.

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How Television Is Changing For Good

  1. 1. You Say You Want A Revolution How Television Is Changing For Good Graham Lovelace presentation to September 5, 2012
  2. 2. Video: Samsung ‘Television has changed, wonder whats next?’ http://youtu.be/Orbzwoc3Xb0
  3. 3. How TV Is Changing• TV technology trends• Connected TV: From TV makers From service providers• Second screen apps and devices• Social TV, social TV analytics• The drive to make TV more efficient• Does TV as we know it have a future?
  4. 4. TV Technology TrendsTV displays that are:• Bigger and thinner
  5. 5. TV Technology TrendsTV displays that are:• Bigger and thinner• Sharp
  6. 6. TV Technology TrendsTV displays that are:• Bigger and thinner• Sharp, and getting sharper: 4k
  7. 7. TV Technology TrendsTV displays that are:• Bigger and thinner• Sharp, and getting sharper: 4k, 8k
  8. 8. TV Technology TrendsTV displays that are:• Bigger and thinner• Sharp, and getting sharper: 4k, 8k• Adding depth – 3D
  9. 9. TV Technology TrendsTV displays that are:• Bigger and thinner• Sharp, and getting sharper: 4k, 8k• Adding depth – 3D• Able to watch you!
  10. 10. TV Technology Trends ‘This is all very exciting to the worlds biggest advertisers who spend billions on TV advertising but dont know whos in the room when their ads air’
  11. 11. Connected TV – From TV MakersTV makers’ holy grail:• Recurring revenues beyond low-margin sale• Commercial approaches broadly similar• Underlying technologies vary – fragmented development environment
  12. 12. Connected TV – From TV MakersMonetisation includes:• Targeted ads: Portal display Recommended apps In-app advertising• Revenue shares: App downloads Video, game rentals
  13. 13. Connected TV – From TV Makers ‘I found the new Smart Interaction – voice, gesture, and facial recognition – unreliable and awkward …’
  14. 14. Connected TV – From TV Makers ‘Many of the key apps, including Facebook, Twitter and the web browser, seemed crude and hard to use without a keyboard …’
  15. 15. Connected TV – From TV Makers ‘There are flashes of a great future merging regular TV and the web on the Samsung Smart TV. But it needs more work’ - Walt Mossberg, WSJ.com
  16. 16. Quick Take #1• TV makers are positioning themselves as the new gatekeepers: Sourcing or producing content Selling and serving advertising Gathering relevant viewer data• Laudable strategy, harnessing potential of convergence• But the problem is: TV makers are generally clueless about all of the above And they generally fail to understand the need to provide a TV- quality experience, and managed consumer service
  17. 17. TV Makers’ Holy Grail• What could possibly go wrong? Consumers buy shiny new internet-enabled TV, but do not connect to internet Consumers connect, but do not use internet functionality• Research by McKinsey (UK and France, n=18,500): Over half of the 10% of homes with smart TVs have never connected them to the internet Just 3% of those owning smart TVs use IP functionality
  18. 18. Quick Take #2• TV makers’ ‘smart TV’ risks becoming a dumb idea• Consumers are complaining of a poor user experience: Slow, non-intuitive interfaces and clunky input device Video buffering Non-enticing app stores, app support: New apps not supported by ‘old’ sets (less than 1 year!) New sets not supporting ‘old’ apps (less than 1 year!) Poor, or non-existent customer support
  19. 19. Quick Take #3• That does not mean connected TV is doomed to fail• The smarter players are the service providers offering bundled TV and broadband: They have the content They provide the pipe They know what it takes to offer a managed service• They are using a range of devices – including connected displays – to reach connected consumers
  20. 20. Connected TV – Service Providers
  21. 21. Connected TV – Service Providers • BSkyB and News Corporation in latest $45m funding round • Roku streaming stick launching this Autumn
  22. 22. Is Apple About To Make A TV?
  23. 23. Is Apple About To Make A TV? ‘Id like to create an integrated television set that is completely easy to use. It will have the simplest user interface you could imagine. I finally cracked it ’ - Steve Jobs
  24. 24. Is Apple About To Make A TV? ‘This is an area of intense interest for us. We’re going to keep pulling this string and see where it takes us’ - Tim Cook, Apple
  25. 25. Is Apple About To Make A TV?• Granted US patent for interface design• Integrates broadcast channels with online• Record button – so device will have DVR
  26. 26. Quick Take #4• Apple is unlikely to make a connected display: Apple favours a ‘single global product’, TV tech is regionally fragmented Apple would need to negotiate content deals, and permission to do disruptive things with broadcasters’ content, in every major market• Instead it will seek to put an Apple interface on the TV you already own, offering a premium set-top box to service providers• It will also continue to extend the iOS ecosystem to TVs using AirPlay, mirroring iPad and iPhone content on the main screen
  27. 27. Second Screen • Apps augment TV viewing: Content discovery, participation Input and control • Synchronised with main screen: Active: viewer has to check-in, tag Passive: automatic • Social integration (social TV)
  28. 28. Second Screen• Exclusive UK tie-up with ITV: 50,000 tags Britain’s Got Talent final Shazam-enabled Pepsi, Cadbury ads• Exclusive US tie-up with NBC Olympics: >1m tags for additional content Half of users allowed location tracking• Now developing behavioural in-app ad targeting, and TV commerce
  29. 29. Second Screen• Loyalty programme for TV• Incentivises viewing by awarding points, exchanged for gift cards, tickets,rewards• Latest tie-up: free movies with DirecTV• Social media advice: how to cheat it!
  30. 30. Quick Take #5• Second screen apps offer opportunities for: Data capture Interactive advertising, highly targeted TV commerce New metrics, analytics• Potential for disruption: New entrants monetising second screen apps without the involvement of the broadcaster or service provider
  31. 31. Second Screen ‘As much as Samsung and others have promoted smart TVs the reality is that consumers with tablets think their tablets are even smarter’
  32. 32. Second Screen • Tablets are displacing PCs, laptops and smartphones • Displacing small TVs • New place scenarios for TV
  33. 33. Second Screen• EPG with live social ratings and a connected TV remote• Social networking platform• Infotags created by subtitles: Links to related information Links to TV commerce
  34. 34. Second Screen ‘zeebox creates a direct channel between advertisers and consumers with powerful transactional capabilities. The second screen is entirely free to be commercialised’ - Ernesto Schmitt, zeebox
  35. 35. Quick Take #6• Challenges for second screen: Overcoming app overload – too many apps for the same show competing for consumer attention Achieving scale, reaching the masses: Make it essential – the way to vote, play along Make it easy – seamless integration with programming Requires deals with service providers … just as service providers are rolling out their own second screen apps, so expect acquisitions
  36. 36. Video: Sky ‘Sky+ App for iPad’http://youtu.be/KG5tlvW0f3A
  37. 37. Social TV• People using social networks and social apps to: Find, rate, share programmes Chat with friends while watching Participate with programmes• Increasingly integrated with second screen apps• Driven by rapid take-up of tablets and smartphones, and meteoric rise of social networking• TV and social networking: symbiotic relationship
  38. 38. Quick Take #7• Social TV generates data which can power: New forms of programme discovery, bypassing operator’s EPG Interactive advertising, highly targeted TV commerce, on the second screen New forms of participation• Can drive tune-in AND keeps viewers watching live• Provides instant feedback for producers and advertisers• Provides new audience insights and some form of engagement/ appreciation metric• At the early stages of understanding social TV behaviours
  39. 39. Content Genres Influence Activity Focus not required HIGH SOCIAL Sports Clearly defined breaksContinuous action Reality/ game shows Sitcoms MID SOCIAL Reality dramas Dramas Action/ crime LOW SOCIAL Focus required
  40. 40. Social TV Analytics• Quantifying social media commentary mapped to TV programming: Volume (size and share of voice) Sentiment (positive, neutral, negative)
  41. 41. Social TV Analytics
  42. 42. Drive To Make TV ‘More Efficient’ ‘There’s a ton of waste in television advertising. Advertisers demand that in the 21st Century we leverage the power of targeting that the internet affords us … to deliver their message to exactly the right person’ - Johannes Larcher, Hulu
  43. 43. Drive To Make TV ‘More Efficient’ Data-driven demand coming from:Targeted TV advertising Online video advertising• TV platform operators • Content delivery networks• Data analytics providers • Advertising exchanges• Ad tech software vendors • Real-time bidding platforms
  44. 44. Drive To Make TV ‘More Efficient’ Data-driven demand coming from:Targeted TV advertising Online video advertising Connected TV
  45. 45. Drive To Make TV ‘More Efficient’ ‘Via connected TV platforms we can do sophisticated forms of targeting, from contextual to geo, time-of-day, and IP targeting, areas already more advanced than traditional TV’
  46. 46. Quick Take #8• There is huge confusion over traditional TV advertising• Yes, there is scope for innovation: Campaigns integrating social and search Campaigns that extend to second screens• But the traditional TV advertising model is not broken: In many markets it already provides more targeting opportunities than advertisers need or want It is a quick, simple and YES, EFFICIENT way of reaching potential customers within a large mass audience
  47. 47. The Future Of TV ‘The new technology from TiVo and Replay… will spy on you, destroy prime time and shatter the power of the mass market’ - Michael Lewis, 2000
  48. 48. UK Television Viewing First Half 2012 Amount Change Live broadcast (all channels, average day) 4hrs 1min ↓ 1min Commercial TV viewing (average day) 2hrs 36mins ↑ 1min Timeshifted viewing (all homes) 10% ↑ 1% Timeshifted viewing (DVR homes, 51%) 15.9% ↑ 1.2% (47% recorded viewing is watched same day) Ads watched (normal speed average day) 47 ↑ 1.6%Note: laptop, tablet, smartphone viewing notincluded, BARB estimates extra 1.2% viewing
  49. 49. The Future Of TV ‘Contrary to some expectations, technology has not shattered the TV schedule, but rather made it stronger by making it more flexible. Online social networks are likely to enhance the schedule’s appeal, not diminish it’
  50. 50. The Future Of TV ‘As well as satisfying our needs for entertainment and information, television is a key enabler of another fundamental human need – being social. Television is the original social network’
  51. 51. The Future Of TVWatching TV is the best way of relaxing at home
  52. 52. The Future Of TVWatching TV is a good way of bringing the family together
  53. 53. The Future Of TVWatching with others is more enjoyable than watching alone
  54. 54. Television Is Changing FOR GOOD• Technology, and the convergence of broadcast and IP is driving change right across the television industry• It is bringing new ways of finding content, new devices on which to watch it, new ways of making it even more social• The fundamental experience of watching TV, and the reasons why we watch it, is not changing• Neither is the impact and reach of traditional TV advertising• There will be innovation, but we will still be watching spot ads in linear broadcasts for many, many years to come
  55. 55. @glovelaceThank You!

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