What’s Up with SocialTV A
Return to The Family Room IMEDIA ENTERTAINMENT SUMMIT June 26, 2012

INTRODUCING SOCIALTV For next 15-minutes
we’ll cover: • Definining SocialTV Space • Influences in SocialTV • SocialTV for Entertainment • Thoughts on Engaging A Who? Fast-Moving Ecosystem @MARKSILVA • Conclusions #imediasummit #SocialTV Proprietary and Confidential ©2012 Schawk, Inc. All Rights Reserved 2 CREATING COMPELLING AND CONSISTENT BRAND EXPERIENCES

Defining the
SocialTV Space

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 new See Terry Kawaja’s 2012 SF ad:tech keynote at: technologies, products http://www.youtube.com/watch?v=GPo3qoW1B8g and services

CAN WE SIMPLIFY IT FURTHER?
• 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 better

HOW ABOUT A DEFINITION OF
SOCIALTV? “Social tele vision is a general term for technology that su pports communication and social interaction in either the context of watching televisio n, or related to TV content. d It also includes th e study of television-relate s.” social beh avior, devices and network

SIZE OF THE PRIZE? •
Gartner: $3 trillion infotainment market by 2015 – Branded Content Opportunity • Nielsen: 90% smartphone and tablet owners use them while watching TV SOURCE:

GRATUITOUS INFOGRAPHX FOR YOUR NEXT
SOCIALTV DECK Source: 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 DECK Source: Ann-Marie Roussel 2012: http://www.edgeofdigitalculture.com/2012/06/05/the-social-tv-puzzle-infographic/

GRATUITOUS INFOGRAPHX FOR YOUR NEXT
SOCIALTV DECK Source: TrendRR, Wireset, AdAge 2012: http://adage.com/article/trending-topics/a-snapshot-exploding-social-tv-ecosystem/234926/

GRATUITOUS 10% INFOGRAPHX FOR YOUR
20% NEXT SOCIALTV DECK 70% Acquire Obscure Breakout Source: TrendRR, Wireset, AdAge 2012: http://adage.com/article/trending-topics/a-snapshot-exploding-social-tv-ecosystem/234926/

Visual, Motion & Voice Input,
Augmented Reality, Info Symmetry What we want it to be Proprietary and Confidential ©2012 Schawk, Inc. All Rights Reserved CREATING COMPELLING AND CONSISTENT BRAND EXPERIENCES

Visual, Motion & Voice Input,
Augmented Reality, Info Symmetry What it’s like today Proprietary and Confidential ©2012 Schawk, Inc. All Rights Reserved CREATING COMPELLING AND CONSISTENT BRAND EXPERIENCES

Influences for
SocialTV

DEFINING INFLUENCES ON SOCIALTV •
Adoption of smart phones, tablets and smart TVs • Mass reach and engagement of Social Media • Installed SocialTV consumers • Amount of new second-screen applications and smart TV platforms • Consolidation and emergence of dominant second-screen experiences • Correlation of SocialTV metrics to ratings and revenues • Level of investment in startups, new companies • Integration of social into TV program Proprietary and Confidential ©2012 Schawk, Inc. All Rights Reserved Source: TrendRR, Wireset

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, KPCB

CUDDLE UP MEDIUM Source: 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 Report

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, KPCB

SocialTV for
Entertainment

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, AllThingsD

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 audiences

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, KPCB

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 & CyberAgent

“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-buy

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 2012

Engaging the
Ecosystem

WHY BIG BRANDS ARE SETTING
UP SHOP, INVESTING, ACQUIRING AND COMING TO THE VALLEY

CURRENT STATE Technology Agency Marketer
Capital Well Established Value-Creating Relationships Proprietary and Confidential ©2012 Schawk, Inc. All Rights Reserved

THE GEEKOSYSTEM At the center
of this thesis • Sum of parts, not one player • Defining the intersection will generate disproportionate value • Technology will outstrip other elements in ecosystem for wealth, value and cultural capital generation • Consider new compensation, organizational structure, service and role definitions Defining and Developing A Value-Creating Ecosystem Proprietary and Confidential ©2012 Schawk, Inc. All Rights Reserved

BIG BRAND ACQUISITION EXAMPLES: Walmart:
• Kosmix • Grabble • Set Direction • One Riot The Walt Disney Co: • Playdom • Club Pinguin • Tapulous

BIG BRAND INVESTMENT EXAMPLES: PepsiCo
and Unilever: • Physic Ventures • Yummly American Express • Establishes $100m fund for payments

BIG BRANDS SETTING UP SHOP
IN THE VALLEY: Anheuser-Busch/InBev • Beer Garage Best Buy Proctor & Gamble

A NEW WAY TO LOOK
AT MEDIA BUYING AND PARTNERS: SCALE + ADAPTIVE + ADVISORY + PARTNERS + STRATEGIC + VALIDATION

CHANGE IS EVENT DRIVEN Proprietary
and Confidential ©2012 Schawk, Inc. All Rights Reserved

Adam Broitman Adam Burg Mark
Ghuneim Lori Schwartz Circ.Us Digit TrendRR, Wireset World of Schwartz Huge Thanks to The SocialTV Ecosystem

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/SocialTeeVee