This document provides an overview of SocialTV, including: defining SocialTV as the intersection of social media and television; influences driving SocialTV such as new technologies and devices; opportunities for entertainment brands in SocialTV through engagement and analytics; challenges in the fast-moving SocialTV ecosystem; and ways big brands are engaging with startups through investments, acquisitions, and events.

1. What’s
Up with
SocialTV
A Return to
The Family Room
IMEDIA ENTERTAINMENT
SUMMIT
June 26, 2012
Picture source: http://www.leggetter.co.uk/pres/techmeetup_edi_2012-02-08/images/sports_med.jpg and national
archives

2. 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
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3. Defining the
SocialTV Space

4. 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

5. 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

6. 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
Social: Closest, most-intimate & influential
connections; interest graph; place; meta-data
TV: Mass reach; one of last legal addictions; potential
to get better w/more info, accountability

7. HOW ABOUT A
DEFINITION
OF SOCIALTV?
rm for
“Soc ial television is a general te
on and
technology that supports communicati
xt of
social 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

8. 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:

9. 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

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

11. 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/
Speaking of Pie Charts & Ecosystems, Joe Kraus of
Google Ventures predicts that 70% of these companies
will be acquired/acqu-hired or disappear; 20%
obscurity & 10% breakout

12. 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/
Speaking of Pie Charts & Ecosystems, Joe Kraus of
Google Ventures predicts that 70% of these companies
will be acquired/acqu-hired or disappear; 20%
obscurity & 10% breakout
Speaks to volatility of the space which makes it a
challenge to keep pace, prioritize tests/bets, etc. So,
how to engage ecosystem. Propose approach in
following slides.

13. Visual, Motion & Voice Input, Augmented Reality, Info Symmetry
What we want it to be
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14. Visual, Motion & Voice Input, Augmented Reality, Info Symmetry
What it’s like today
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Part of the challenge with what we see today is that
it’s not that sexy. Don’t be fooled by the existing user
experience. The platform is being created in and
around TV now.

15. Influences for
SocialTV

16. 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

17. 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
Drawing comparison with the mobile app market, mass-adopted innovation happened in The Valley not with
the carriers or studios, incumbent gatekeepers in TV. It’s happening in and around the box--we need to watch
for tipping point/new capability/behavior adoption

18. CUDDLE
UP
MEDIUM
Source: Nielsen Q3 2011 Connected Device Report, Jason Calacanis post “Cuddle Up Medium”

19. FITS-IN
89%
82%
MEDIUM
80%
76%
47%
39% 49%
43%
Source: Nielsen Q3 2011 Connected Device Report
Entertainment and escape. Even the bathroom usage stat, we’ve heard
from one ethnographer that a fair amount of that is with “seat down”

20. 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
http://www.scribd.com/doc/95259089/KPCB-Internet-Trends-2012

21. SocialTV for
Entertainment

22. 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
Early adopter use case for Social Analytics & TV from
2010.

23. 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
Even niche shows have potential for large social reach
and real-time engagement

24. 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
http://www.scribd.com/doc/95259089/KPCB-Internet-Trends-2012
eCPMs lower
ARPU lower on Mobile v Desktop for Pandora, Tencent & Zynga
Google’s Cost-Per-Click lower constraining revenue growth
Facebook ARPU lower constraining revenue growth

25. 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
http://www.scribd.com/doc/95259089/KPCB-Internet-Trends-2012
Good news found in mobile-centric society, Japan w/Gree & Cyberagent showing rapid growth in mobile ARPU
in past few quarters
Entertainment will want to consider models such as Disney’s Playdom acquisition or EA’s Playfish--precision
marketing efforts that drive cross-marketing to right minded for conversion, offer rewarding across properties,
channels, etc.

26. “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
There’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 and
not just interrupt.
Question for the room--are you ready to spend more than experimental budgets today on SocialTV?

27. 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
http://www.iab.net/media/file/IAB_Internet_Advertising_Revenue_Report_FY_2011.pdf

28. Engaging the
Ecosystem

29. WHY BIG
BRANDS ARE
SETTING UP
SHOP,
INVESTING,
ACQUIRING
AND COMING
TO THE
VALLEY
Other recent examples: Newspapers, Kodak

30. CURRENT STATE
Technology
Agency
Marketer
Capital
Well Established Value-Creating Relationships
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Big Brands have also leaned on their agencies to identify emerging consumer and technology trends, but this is
becoming increasingly more difficult for a number of reasons

31. 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
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32. BIG BRAND
ACQUISITION
EXAMPLES:
Walmart:
• Kosmix
• Grabble
• Set Direction
• One Riot
The Walt Disney Co:
• Playdom
• Club Pinguin
• Tapulous
Ways big brands are engaging the ecosystem--there’s a spectrum between physical presence and acqui-hires/
talent to virtual and investments

33. BIG BRAND
INVESTMENT
EXAMPLES:
PepsiCo and Unilever:
• Physic Ventures
• Yummly
American Express
• Establishes $100m
fund for payments
http://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-Commerce
http://www.physicventures.com/news/yummly-snaps-6-million-series-round-digital-kitchen-platform

34. BIG BRANDS
SETTING UP
SHOP IN THE
VALLEY:
Anheuser-Busch/InBev
• Beer Garage
Best Buy
Proctor & Gamble
https://foursquare.com/v/abi-bg/4dc0adbce4cda3b87f112528

35. A NEW WAY TO
LOOK AT MEDIA
BUYING AND
PARTNERS:
SCALE
+ ADAPTIVE
+ ADVISORY
+ PARTNERS
+ STRATEGIC
+ VALIDATION
Loved that Sony SVP Digital, Jake Zim, talked about
Scale 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 being
slow moving as a result. However, these big giants are
showing up better equipped with new tools and
weapons for competing for new technologies and
media than ever before. In addition to ad-buys,
consider their value in ability to validate new platforms,
hone strategies, adapt them to future application and
success.

36. CHANGE IS EVENT DRIVEN
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Want to propose one other way to engage the
Geekosystem: events. We created The Big Brand
Hackathon to drive cultural change and fast-forward
mobile innovation for big brands, Kraft Foods and The
Home Depot, last weekend. See the video recap at
http://bit.ly/BigBrandHack

37. Adam Broitman Adam Burg Mark Ghuneim Lori Schwartz
Circ.Us Digit TrendRR, Wireset World of Schwartz
Huge Thanks to The
SocialTV Ecosystem
Thought leaders tapped for advice & input on this
presentation.

38. 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
http://bit.ly/SocialTeeVee for links to articles, research,
presentations and players in the SocialTV space