What’s Up with SocialTV A Return to The Family Room IMEDIA ENTERTAINMENT SUMMIT June 26, 2012Picture source: http://www.leggetter.co.uk/pres/techmeetup_edi_2012-02-08/images/sports_med.jpg and nationalarchives
WHERE DOES IT FIT? • Start with Kawaja’s Social Lumascape • As with all shifts in consumer behavior and media, SocialTV is a convergence of a number of other influences, growing sophistication of the Internet Stack and tools along with newSee Terry Kawaja’s 2012 SF ad:tech keynote at: technologies, productshttp://www.youtube.com/watch?v=GPo3qoW1B8g and services
CAN WESIMPLIFY ITFURTHER?• Companies that define their focus on SocialTV discovery or companion apps trying to: • Enable a better TV Guide, recording and viewing experience • Make TV more Social• Analytics and eventually ad delivery
BREAKING DOWN SOCIALTV TO ITS SOCIAL Audience+Network TV Audience ELEMENTS • Social: Our closest, most intimate & influential connections • TV: Scale (2-commas, save the drama); last legal addiction?; about to get even betterSocial: Closest, most-intimate & inﬂuentialconnections; interest graph; place; meta-dataTV: Mass reach; one of last legal addictions; potentialto get better w/more info, accountability
HOW ABOUT A DEFINITION OF SOCIALTV? rm for“Soc ial television is a general te on andtechnology that supports communicati xt ofsocial in teraction in either the conte nt.watching televi sion, or related to TV conte elated It also inclu des the study of television-r rks.” social b ehavior, devices and netwo
SIZE OF THE PRIZE? • Gartner: $3 trillion infotainment market by 2015 – Branded Content Opportunity • Nielsen: 90% smartphone and tablet owners use them while watching TVSOURCE:
GRATUITOUS INFOGRAPHX FOR YOUR NEXT SOCIALTV DECKSource: Digital Ministry: http://digitalministry.com/UK/articles/1397/The+future+of+TV+is+social+and+the+revolution+is+coming+%21/1
GRATUITOUS INFOGRAPHX FOR YOUR NEXT SOCIALTV DECKSource: Ann-Marie Roussel 2012: http://www.edgeofdigitalculture.com/2012/06/05/the-social-tv-puzzle-infographic/
GRATUITOUS INFOGRAPHX FOR YOUR NEXT SOCIALTV DECKSource: TrendRR, Wireset, AdAge 2012: http://adage.com/article/trending-topics/a-snapshot-exploding-social-tv-ecosystem/234926/Speaking of Pie Charts & Ecosystems, Joe Kraus ofGoogle Ventures predicts that 70% of these companieswill be acquired/acqu-hired or disappear; 20%obscurity & 10% breakout
GRATUITOUS 10% INFOGRAPHX FOR YOUR 20% NEXT SOCIALTV DECK 70% Acquire Obscure BreakoutSource: TrendRR, Wireset, AdAge 2012: http://adage.com/article/trending-topics/a-snapshot-exploding-social-tv-ecosystem/234926/Speaking of Pie Charts & Ecosystems, Joe Kraus ofGoogle Ventures predicts that 70% of these companieswill be acquired/acqu-hired or disappear; 20%obscurity & 10% breakoutSpeaks to volatility of the space which makes it achallenge to keep pace, prioritize tests/bets, etc. So,how to engage ecosystem. Propose approach infollowing slides.
INNOVATION Fast, Faster, Fastest Device Adoption AROUND THE BOX • When broadband hit 50%, YouTube happened • When smartphones hit 50%: Instagram • When is SocialTV’s tipping point moment and what is the new behavior/device enabler that will win? Source: Apple, Mary Meeker, KPCBDrawing comparison with the mobile app market, mass-adopted innovation happened in The Valley not withthe carriers or studios, incumbent gatekeepers in TV. It’s happening in and around the box--we need to watchfor tipping point/new capability/behavior adoption
CUDDLE UP MEDIUMSource: Nielsen Q3 2011 Connected Device Report, Jason Calacanis post “Cuddle Up Medium”
FITS-IN 89% 82% MEDIUM 80% 76% 47% 39% 49% 43% Source: Nielsen Q3 2011 Connected Device ReportEntertainment and escape. Even the bathroom usage stat, we’ve heardfrom one ethnographer that a fair amount of that is with “seat down”
DEVICE SocialTV: An Accretive Opportunity ADOPTION • Just as mobility drove adoption and utility for phone subscription revenues we anticipate SocialTV to drive accretive revenues for the entire food chain Source: Apple, Mary Meeker, KPCBhttp://www.scribd.com/doc/95259089/KPCB-Internet-Trends-2012
REAL, REAL- TIME ANALYTICS When the show airs on the East Coast, and we’re on the West Coast, we hit Twitter, and watch people watching the show and basically in real time, laughing on Twitter. We get instant feedback about which lines work. Stephen Levitan, Modern Family Source: Kara Swisher, AllThingsDEarly adopter use case for Social Analytics & TV from2010.
VISIBLY ENGAGED AUDIENCES GATHERING AROUND TV CONTENT • Economics and 4,593,467 Likes results of a Fan 49,467 talking Page are hard to about this debate with Entertainment • Built-in infrastructure and audiencesEven niche shows have potential for large social reachand real-time engagement
TV DOLLARS TO Adjusting to New Currency DIGITAL DIMES TO MOBILE PENNIES • By most measures the hyper- accuracy, timeliness, locality and context of Mobile are driving growth and relevance, but at the cost of CPMs • Good news: more effective for marketers Source: Apple, Mary Meeker, KPCBhttp://www.scribd.com/doc/95259089/KPCB-Internet-Trends-2012eCPMs lowerARPU lower on Mobile v Desktop for Pandora, Tencent & ZyngaGoogle’s Cost-Per-Click lower constraining revenue growthFacebook ARPU lower constraining revenue growth
ARPU=SILVER Growth in Mobile-Centric Societies LINING IN NEW PLATFORM FUNDING • Good news found in mobile-centric society, Japan w/Gree & Cyberagent showing rapid growth in mobile ARPU in past few quarters Sources: Mary Meeker, KPCB, Morgan Stanley, Gree & CyberAgenthttp://www.scribd.com/doc/95259089/KPCB-Internet-Trends-2012Good news found in mobile-centric society, Japan w/Gree & Cyberagent showing rapid growth in mobile ARPUin past few quartersEntertainment will want to consider models such as Disney’s Playdom acquisition or EA’s Playﬁsh--precisionmarketing efforts that drive cross-marketing to right minded for conversion, offer rewarding across properties,channels, etc.
“IT’S LIKE THE 2011 US Ad Spending INTERNET 200 WITH MORE ZEROES” 150 DAVE MORGAN, CEO, SIMULMEDIA @DAVEMORGANNYC $31,700,000 • Internet comprises 100 $171,700,000 $162,000,000 $144,000,000 <20% of US ad spend • TV still dominant 50 medium for spending • Argument goes: TV is 0 US Media 2011 the “scale solution,” with social it is also the IAB/PwC Kantar Magna Internet smart-buyThere’s one argument that the allure of SocialTV is that it’s the brands’ most powerful weapon of mass-persuasion combined with digital smarts, relevance and potential for virality. It’s an opportunity to engage andnot just interrupt.Question for the room--are you ready to spend more than experimental budgets today on SocialTV?
WHAT BRANDS Top Internet Ad Categories EMBRACE THE DIGITAL AGE BEST? • Retail, Financial Services, Telecom, Automotive, Computing and Travel have all transformed business models with digital • Growth opportunity great in CPG, Media and Entertainment Source: IAB/PwC 2012http://www.iab.net/media/ﬁle/IAB_Internet_Advertising_Revenue_Report_FY_2011.pdf
BIG BRAND ACQUISITION EXAMPLES: Walmart: • Kosmix • Grabble • Set Direction • One Riot The Walt Disney Co: • Playdom • Club Pinguin • TapulousWays big brands are engaging the ecosystem--there’s a spectrum between physical presence and acqui-hires/talent to virtual and investments
BIG BRAND INVESTMENT EXAMPLES: PepsiCo and Unilever: • Physic Ventures • Yummly American Express • Establishes $100m fund for paymentshttp://techcrunch.com/2011/11/08/american-express-launches-100m-fund-to-invest-in-digital-commerce-startups/http://www.businesswire.com/news/home/20111108005153/en/American-Express-Announces-100-Million-Digital-Commercehttp://www.physicventures.com/news/yummly-snaps-6-million-series-round-digital-kitchen-platform
BIG BRANDS SETTING UP SHOP IN THE VALLEY: Anheuser-Busch/InBev • Beer Garage Best Buy Proctor & Gamblehttps://foursquare.com/v/abi-bg/4dc0adbce4cda3b87f112528
A NEW WAY TO LOOK AT MEDIA BUYING AND PARTNERS: SCALE + ADAPTIVE + ADVISORY + PARTNERS + STRATEGIC + VALIDATIONLoved that Sony SVP Digital, Jake Zim, talked aboutScale earlier today--”Two commas & spare the drama”on vetting scalability of an idea from creative or media.Big companies are large-scale and perceived as beingslow moving as a result. However, these big giants areshowing up better equipped with new tools andweapons for competing for new technologies andmedia than ever before. In addition to ad-buys,consider their value in ability to validate new platforms,hone strategies, adapt them to future application andsuccess.
Adam Broitman Adam Burg Mark Ghuneim Lori Schwartz Circ.Us Digit TrendRR, Wireset World of Schwartz Huge Thanks to The SocialTV EcosystemThought leaders tapped for advice & input on thispresentation.
Thank you. Let’s Make Stuff Happen. @MarkSilva on Twitter, LinkedIn & Facebook +RealMarkSilva on Google & Skype ANTHEM WORLDWIDE 77 Maiden Lane Fourth Floor San Francisco, CA 94108 digital.anthemww.com Awesome compendium of links for the space: @anthemww Facebook: Anthem http://bit.ly/SocialTeeVeehttp://bit.ly/SocialTeeVee for links to articles, research,presentations and players in the SocialTV space