SocialTV Overview

What’s Up withSocialTV A Return to The Family RoomIMEDIA 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 #SocialTVProprietary and Confidential ©2012 Schawk, Inc. All Rights Reserved 2 CREATING COMPELLING AND CONSISTENT BRAND EXPERIENCES

Defining theSocialTV 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 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 ITSSOCIALAudience+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 fortechnology that su pports communication andsocial interaction in either the context ofwatching 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 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/

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/

Visual, Motion & Voice Input, Augmented Reality, Info Symmetry What we want it to beProprietary 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 todayProprietary 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 programProprietary and Confidential ©2012 Schawk, Inc. All Rights Reserved Source: TrendRR, Wireset

INNOVATIONFast, 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 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 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 chainSource: Apple, Mary Meeker, KPCB

SocialTV forEntertainment

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 FamilySource: Kara Swisher, AllThingsD

VISIBLY ENGAGED AUDIENCES GATHERING AROUND TV CONTENT • Economics and4,593,467 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 marketersSource: 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 quartersSources: Mary Meeker, KPCB, Morgan Stanley, Gree & CyberAgent

“IT’S LIKE THE 2011 US Ad Spending INTERNET200 WITH MORE ZEROES”150 DAVE MORGAN, CEO, SIMULMEDIA @DAVEMORGANNYC $31,700,000 • Internet comprises100 $171,700,000 $162,000,000 $144,000,000 <20% of US ad spend • TV still dominant50 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 EntertainmentSource: IAB/PwC 2012

Engaging the Ecosystem

WHY BIGBRANDS ARESETTING UPSHOP,INVESTING,ACQUIRINGAND COMINGTO THEVALLEY

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 EcosystemProprietary and Confidential ©2012 Schawk, Inc. All Rights Reserved

BIG BRANDACQUISITIONEXAMPLES:Walmart: • Kosmix • Grabble • Set Direction • One RiotThe Walt Disney Co: • Playdom • Club Pinguin • Tapulous

BIG BRANDINVESTMENTEXAMPLES:PepsiCo and Unilever: • Physic Ventures • YummlyAmerican Express • Establishes $100m fund for payments

BIG BRANDSSETTING UPSHOP IN THEVALLEY:Anheuser-Busch/InBev • Beer GarageBest BuyProctor & Gamble

A NEW WAY TOLOOK AT MEDIABUYING ANDPARTNERS:SCALE+ ADAPTIVE+ ADVISORY+ PARTNERS+ STRATEGIC+ VALIDATION

Adam Broitman Adam Burg Mark Ghuneim Lori Schwartz Circ.Us Digit TrendRR, Wireset World of SchwartzHuge Thanks to TheSocialTV Ecosystem

Thank you. Let’s Make Stuff Happen. @MarkSilva on Twitter, LinkedIn & Facebook +RealMarkSilva on Google & SkypeANTHEM WORLDWIDE77 Maiden LaneFourth FloorSan Francisco, CA 94108digital.anthemww.com Awesome compendium of links for the space:@anthemwwFacebook: Anthem http://bit.ly/SocialTeeVee