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Social TV: Television in the mobile-first era

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The definitive report on the future of TV in the mobile-first era. This report combines two decades of professional experience in legacy and modern television technologies. It contains primary and secondary consumer research to paint a picture of exactly where we are in the transformation of TV - and where we're headed. The report defines SocialTV and places metrics around the phenomenon to help measure it's presence and impact. It includes an original content analysis that shows which genres of content could most benefit from aggressive SocialTV strategies. It contains an analysis of Twitter. If you are trying to understand where the TV technology business is headed, this is the report for you! Plus, it's free.

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Social TV: Television in the mobile-first era

  1. 1. #SocialTV: Television in the mobile-first era It’s not a 2nd screen, it’s our second brain. September 10th 2014
  2. 2. EVOLUTION of TV TV MARKET WEB TV Mobile Social, Pmts Cloud, Location 2 Fragmenting content genres, audiences & platforms - converging markets & technology. Tech has hit the TV biz in three big waves - free TV, pay TV and now OTT. The last two shifts - pay & OTT - have coincided with major evolutions of the web. Free Platforms Open Web 1.0 Web 2.0 UGC, Video, 1960s 2007 2014 $18B Home Video $85B Pay TV Subs $80B Free-to-air Broadcast $6B Premium Over-the-top $1B? Auth TV Everywhere $4B ad-based online video $42B Notes: 2013 data, U.S. only, sourced from Needham, Pivotal Research, BIA Kelsey, IAB, DEG
  3. 3. MOBILE-FIRST TV 3 Today, mobile is adding a flurry of amazing new dimensions to our lives - digital and physical. #SocialTV leverages the power of mobile to extend TV’s usefulness & connection to daily life. #SocialTV Web 1.0 Mobile 1960s 2007 2014 $18B Home Video $85B Pay TV Subs $80B Free-to-air Broadcast $6B Premium Over-the-top $1B? Auth TV Everywhere $4B ad-based online video $42B Social, Pmts Cloud, Location UGC, Video, Free Platforms Open $2.3B Social/ Native Ads Web 2.0 Free TV > Pay TV > Web 2.0 TV > #SocialTV @brianlring
  4. 4. BIG MOBILE IMPACT Our new mobile device habits - sleeping, eating and watching TV with our digital companion. •84% on mobile while watching TV • 9% Voted / Sent Comment to Live program • Nielsen Digital Consumer (Feb 2014) However “Voted/Sent comment to Live program” may well be too narrow to properly frame the #SocialTV opportunity across TV. 4
  5. 5. #SOCIALTV INDEX ~23% of the internet population has been an active social TV user. #SocialTV Index - Phrasing 1 Have you ever used social media to vote, post, share or comment about something on TV? (2,475 responses) 23.7% YES Note: Full stats on Google Consumer Surveys available by email #SocialTV Index, Phrasing 2 Have you ever used social media to post comments about something you saw on TV? (1,415 response) 21.2% YES 5 How should we measure Social TV? We ran a Google Consumer Survey. To sponsor the next one, contact me at brian@RingDigital.tv @brianlring
  6. 6. #SOCIALTV INDEX Coming soon - more users. ~47% of 18 - 24 year olds have been active social TV users.* 6 #SocialTV Index, Phrasing 2 Have you ever used social media to post comments about something you saw on TV?* While more study is needed* - it looks like SocialTV is going to be yet-another a tidal wave of disruption - and opportunity - coming at the broadcast, pay TV and OTT (over-the-top) TV markets. @brianlring
  7. 7. Social + mobile + TV is a powerful platform for inventing creative & meaningful use cases. 1. Interactivity - talk, news, variety, reality, game, sports - participation TV 2. Hashtags - rooms, comments, shares - community-driven content & UGC 3. Chat/text - real friendships, hangouts, Snapchat, Whatsapp 4. Bonus and additional content - bios, stats, pics, data - mobilization of web 5. Mobile & personal EPG - find shows, create alert, integrated friend wisdom 6. Broadcast graphics, text, tickers - glue between TV silos in production & sales VOTING, PARTICIPATING SHARING, COMMUNITY CHAT, TEXT RELATED CONTENT EPG, SEARCH & DISCOVERY See our in-depth analysis on social TV conversation types - and how they are deployed across content genres - in Part 2 A PLATFORM CONTENT CREATION 7
  8. 8. 8 MONETIZATION What’s the business model? Can #SocialTV work at scale? How do technology tools fit in? Selected Monetization Examples for Social TV Real-time & near-live clips - portals with instant highlights for mobile Apps and portals will obtain rights to near-live content and sell video ads against the inventory. Rent, buy or subscribe - social commerce & marketing Storefronts like Netflix or Amazon will use social marketing & viewer engagement to encourage transactions - tell-a-friends, etc. Subscription retention and upgrades - social CRM Ratings, ratings, ratings - and for local stations - local ad dollars $2.3B Social/ Native Ads $6B Premium Over-the-top $1B? Auth TV Everywhere $4B ad-based online video Pay TV nets will use social to drive tune-in & build franchise value. MVPDs will use the data to shape packaging and pricing. Broadcasters will drive tune-in and ratings for their product. Local stations should also use it to drive a greater share of digital ad dollars.
  9. 9. MONETIZATION Monetization is about re-arranging attention & cognition - measuring that - and charging for it. • Nielsen Viggle, July 2014 - TV + Social yields brand recall of 46% vs 33% for TV Only • Millward Brown, Dec 2013 - Twitter + TV improves recall from 40% to 53% • Nielsen - 15 second “neuro-optimized” spots are just as effective as 30 second spots 9 How should we think about what an engagement is worth? @brianlring
  10. 10. MOBILE Is it a distracting 2nd screen? Or our second brain, helping us to boost productivity? Pew Internet & American Life April 2012 What Teachers Say About Kids & Digital Pew Internet & American Life April 2012 What Teachers Say About Kids & Digital 87% say “Today’s digital technologies are creating an easily distracted generation with short attention spans 88% say “Compared with previous generations, today’s students have fundamentally different cognitive skills b/c of the digital technologies they have grown up with. On one hand - it’s self evident that mobile is splintering our attention. On the other, it enables a kind of hyper-productivity around content creation, consumption & enjoyment. 10 @brianlring
  11. 11. ENJOYMENT = $$ The amazing effect of Social TV: More Enjoyment & More Live TV. Paying attention? I’m taken with this stat b/c I spent years in the set-top ‘Interactive TV’ business deploying a range of socialTV-like use cases that never took hold. What’s different? The iPhone. And the rise of a new kind of human computer interaction (“HCI”). The so-called mobile-first era is ubiquitous & pervasive - and enables mass adoption of surprising, new behaviors. Industry Timing. Social TV is rising just as the TV business successfully - albeit not without hiccups - grapples through a decade of innovation marked by DVR, VOD, OTT, TVE, tablet, live streaming, cloud TV & Aereo. In this context, social TV looks like a video product extension with substantial growth potential and commercial viability. Will the “enjoyment” metric cap out in the 15 - 20% range? Or does social TV have enough steam to hit 50%+ penetration of the social TV population? @brianlring 11
  12. 12. CASE STUDY Source: June 29 2014 Adweek (anon source) “NFL, Champ of Twitter’s Amplify” Incremental ad rev $10MM* Video view rate - 5% Engagement rate - 4x avg Major sponsors - McD, Vz, MSFT Twitter followers - 7MM Twitter audience - 30MM Est avg re-tweet - 300 - 800 12 Twitter NFL case - Amplify, the rise of Social + TV advertising - and Facebook - what’s next? “Going into 2014, we have a lot more rights flexibility - near-live content has become the NFL’s to distribute, independent of the game window” -NFL @brianlring
  13. 13. PLATFORMS Seven structural TV advantages to Twitter - but nothing is locked - we’re in inning #1. Twitter advantages 1 - Public - broadcast 2 - Real-time - voting, participation 3 - Conversational - polls, contests 4 - Distributed - public newswire • Currency - Twitter gives depth to TV’s key currency, Nielsen - social CRM, sentiment analysis and other advances will make this data even better • Broadcast - a real-time RSS, it’s a syndication powerhouse - flexibly handling any combination of photos, video, text, graphics, and URLs • Hashtags - human-powered semantic structure - more efficient info conveyance - the Twitter protocol is well suited to mobile • Re-filtering - a new kind of public square, enabling celebs, journalists and super-fans to arise and drive targeted, deeper and/or broader influence • Time-warp - the DVR broke TV’s linear model - Twitter enables a more fluid connection from Live to VOD; Ep 1 to 2; and Season 1 to 2 • Graphics - on-air CG, critical to the TV business, has made social the intersection between linear & digital teams everywhere • Sideshow - related content of incredible depth and diversity, and the power of human + machine curation to contain the chaos 13 Twitter is RSS 3.0 - an advanced human<>machine com protocol <Twitter> Public ID #Semantics Natural language Pics & Clips URLs & Buttons </Twitter> Twitter also has weaknesses & vulnerabilities - they may be unable to support the diversity of use cases growing on the platform. Twitter as an S1 filing Twitter as a protocol Twitter as an extension to TV
  14. 14. 14 Content Genre & Monetization of #SocialTV An in-depth section on how #SocialTV is developing across content genres and conversation types
  15. 15. GENRE STRATEGIES In prime-time TV, the share of ad spend varies by genre - so too, will #SocialTV strategies. The Content Genre is an economic variable that will impact how #SocialTV can be monetized. The Index at right translates Nielsen data into numbers that indicate the relative economic strength of each genre. Source: Nielsen Ads & Audiences 2012 E.g. News gets low ad revenue relative to viewership, so its index is low @brianlring 15
  16. 16. GENRE STRATEGIES Fragmenting bundles, audiences - each genre needs its own social TV monetization strategy. • News - despite high reach & influence, local news stations have done a poor job of exploiting digital opportunities. Can a post-roll off a near-live clip generate enough offset dollars? • Drama - getting killed by the DVR - but a bright future in the premium model a la HBO / Showtime / Netflix / Hulu - thus, needs social to create web-scale franchises that can stand alone - or monster brands like Orange is the New Black from Netflix • Reality - singing contests, live tours, merchandise - the rise of the event-driven TV model • Sports - explosive growth in content programming relative to collective hours viewed** - the ‘sports premium’ reflects the power of live sports in a Social TV context • Sitcom - seems to have the the least engagement - except around live TV events 16 **Nielsen: From 2003-2013, sports programming was up 232% while collective hours viewed was up only 27%. Some have speculated whether the sports business is in a content bubble.)
  17. 17. GENRE BREAKDOWN How does the volume & creativity of social TV engagement vary across content genres? Multiple Answers: For which of the following 5 genres of prime-time TV have you posted? Source: Google Consumer Survey; Full details available via email 17 Note that all genres can have a ‘live TV event’ component - think Seinfeld Reunion ep - which typically have high social TV ratings. @brianlring
  18. 18. What are the unique insights developing within each genre of content? What’s coming next? Source: Google Consumer Survey; full details available via email GENRE BREAKDOWN 18
  19. 19. GENRE ANALYSIS 19 Pew Research identified six different Twitter conversation networks (1/2) Pew Research Center, February 20, 2014
  20. 20. GENRE ANALYSIS 20 Pew Research identified six different Twitter conversation networks (2/2) Pew Research Center, February 20, 2014
  21. 21. GENRE ANALYSIS Quick Study: What do different genres look like against Pew’s 6 Twitter conversation types? 21 CONTENT GENRE (2013 Ad Spend) VISIBLE TWITTER NETWORKS NOTES Drama ($12B) Brand Cluster//Community Cluster// - Highest number of different hashtags per show Polarized Crowd//Tight Crowd -Most visible push for ‘live-tweeting with the show’ -Tweeters actively seeking interaction with other fans by participating in hashtag trends, “live-tweeting” -Official Twitter account “take-overs” by a star of the show, Sitcom ($6B) Brand Cluster//Community Cluster answering - Tweeters questions, not actively interacting seeking interaction with fans - few hashtags or attempts to get the show trending, special events excepted -Highest number of tweets containing quotes or video clips -Low number of users “live-tweeting” Feature Film ($5B) Brand Cluster//Broadcast Network - Highest number of campaigns and contests that incite user interaction and interest -High quantity of individual tweets; low quantity of conversation Documentary ($4B) Brand Cluster//Polarized Crowd// - A slow trickle of tweets consisting of opinions or Tight Crowd recommendations on the documentary -Not “must-see TV”; often viewed at leisure, does not arouse a large influx of tweets upon its release -Audience is self-selecting, often choosing to view a documentary Participation / Brand Cluster//Broadcast Network// based on the familiarity of topic variety ($3B) Community Cluster - Official account acts as “digest”, retweeting tweets by show’s stars, any relevant news, or anything by its sub-accounts -Faction accounts created for “teams” to create tighter community Note: Ad Spend numbers from Nielsen Ads & Audiences May 2014; unbolded text indicates a lighter presence of that conversation type on Twitter @brianlring
  22. 22. GENRE ANALYSIS Quick Study: What do different genres look like against Pew’s 6 Twitter conversation types? 22 CONTENT GENRE (2013 Ad Spend) VISIBLE TWITTER NETWORKS NOTES General News ($9B) Brand Cluster//Broadcast Network// Polarized Crowd//Tight Crowd// Community Cluster//Support Network - Highest variety of social media networks used - Major networks have a blanket, main account that acts as a “digest” for individual programs, pundits, and other accounts - Local news stations not as prominent Special News ($5B) Brand Cluster//Broadcast Network// Community Cluster - High number of posts and retweets promoting program - Low frequency of conversation; high frequency of individual tweets Reality/Variety ($5B) Brand Cluster//Community Cluster// Broadcast Network - Endless streams of individual tweets regarding stars - Small communities of fans who discuss latest episode and live-tweet airings - High usage of accounts, low interaction with fans by stars NFL Regular Season ($4B) Brand Cluster//Community Cluster// Broadcast Network//Tight Crowd - Official team accounts post real-time updates, interviews, post-game events, photos of team camaraderie or fans, and contests - Fans “live-tweet”, retweet game results and tweet opinions of players, managerial decisions, and moments in the game - Large number of all-caps tweets Interview / chat / table talk ($3B) Brand Cluster//Broadcast Network// Community Cluster - Official show Twitter posts announcing guests, fans of guest or show retweet and expressing excitement - If guest has a large fanbase, large efforts are made to get the interview trending and a variety of hashtags are employed @brianlring
  23. 23. 23 RING DIGITAL LLC Expert business development, product strategy & technology services for video & TV innovators. RingDigital.tv ! brian@ringdigital.tv ! @brianlring 23
  24. 24. 24 #SocialTV: Television for the mobile-first era Appendix
  25. 25. MOBILE-FIRST What do we mean by “distraction”, “attention” & “engagement” if cognition itself is changing? Is mobile re-wiring our brains? Google Consumer Survey: Do you think your brain function is being impacted (either positively or negatively) by your usage of your mobile device? What iPhone Users Say (ages 25-54) 36% say “not at all” - 31% say “haven’t thought about it” - 10% say “yes, most def” - 8% say “I think so, but I’m not sure” - n=118 Ages “I’m in this camp - we’re re-wiring our brains - the iPhone ushered in a new, unknown frontier of human computer interaction - expect the unexpected in changing user experiences.” @brianlring 25
  26. 26. DATA VISUALIZATIONS Trending, stats, fantasy, metadata - content creation for Apps includes fancy data viz A finer line between content, graphics, text, data, stats, and visualizations 26 What are examples of case studies & future use cases - where great visualizations have resulted from Social TV efforts
  27. 27. IN-STADIUM APPS Rapid growth of ad-hoc social pre-game, in-game & post-game habits - diverse, growing use cases Instagram in last place? Nope - DOMINATING the post game!
  28. 28. “Addicted to screens” may be too strong - but experimenting with users is already underway. Nudge - the power of the default Made to Stick - why storytelling is so powerful Shopper’s Mind - how we buy Happiness Hypothesis - the brain biology of ancient wisdom Top Dog - what research teaches us about raising kids Iconoclast - imagination sprouts from the visual cortex End of Overeating - addiction biology applies to other stimuli The Shallows - the web is re-wiring our brains You Are Not a Gadget - let’s be careful about this re-wiring Singularity is Near - uber-intelligent machines are coming 2nd Machine Age - uber-intelligent humans-w-mobiles coming The Social Animal - our brains are deeply socially wired HABIT-FORMING 28 We half-joke about ‘screen addiction’ - but there is already a developing science around “building habit-forming technologies”. See Nir Eyal, “Hooked” @brianlring

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