SocialTV Overview

What’s Up with

SocialTVA Return to

The Family RoomIMEDIA ENTERTAINMENT

SUMMIT

June 26, 2012

CREATING COMPELLING AND CONSISTENT BRAND EXPERIENCESProprietary and Confidential ©2012 Schawk, Inc. All Rights Reserved

INTRODUCING SOCIALTVFor next 15-minutes we’ll cover:

• Definining SocialTV Space• Influences in SocialTV• SocialTV for Entertainment• Thoughts on Engaging A

Fast-Moving Ecosystem• Conclusions

2

#imediasummit #SocialTV

Who?@MARKSILVA

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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 technologies, products and services

See Terry Kawaja’s 2012 SF ad:tech keynote at:http://www.youtube.com/watch?v=GPo3qoW1B8g

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 ELEMENTS• Social: Our closest,

most intimate & influential connections

• TV: Scale (2-commas, save the drama); last legal addiction?; about to get even better

SOCIAL TVAudience

Audience+Network

HOW ABOUT A DEFINITION OF SOCIALTV?

“Social television is a general term for

technology that supports communication and

social interaction in either the context of

watching television, or related to TV content.

It also includes the study of television-related

social behavior, devices and networks.”

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


Source: Ann-Marie Roussel 2012: http://www.edgeofdigitalculture.com/2012/06/05/the-social-tv-puzzle-infographic/


Source: TrendRR, Wireset, AdAge 2012: http://adage.com/article/trending-topics/a-snapshot-exploding-social-tv-ecosystem/234926/


Source: TrendRR, Wireset, AdAge 2012: http://adage.com/article/trending-topics/a-snapshot-exploding-social-tv-ecosystem/234926/

10%

20%

70%

Acquire Obscure Breakout


What we want it to beVisual, Motion & Voice Input, Augmented Reality, Info Symmetry


What it’s like todayVisual, Motion & Voice Input, Augmented Reality, Info Symmetry


Influences for SocialTV

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

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

Source: TrendRR, Wireset

INNOVATION 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?

Fast, Faster, Fastest Device Adoption

Source: Apple, Mary Meeker, KPCB

Source: Nielsen Q3 2011 Connected Device Report, Jason Calacanis post “Cuddle Up Medium”

CUDDLE UP MEDIUM

FITS-IN MEDIUM

Source: Nielsen Q3 2011 Connected Device Report

89%82%80%

76%47%

39%43%

49%

DEVICE ADOPTION

• Just as mobility drove adoption and utility for phone subscription revenues we anticipate SocialTV to drive accretive revenues for the entire food chain

SocialTV: An Accretive Opportunity



SocialTV forEntertainment

REAL, REAL-TIME ANALYTICS

Source: Kara Swisher, AllThingsD

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

VISIBLY ENGAGED AUDIENCES GATHERING AROUND TV CONTENT• Economics and

results of a Fan Page are hard to debate with Entertainment

• Built-in infrastructure and audiences

4,593,467 Likes49,467 talking

about this

TV DOLLARS TO 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

Adjusting to New Currency


ARPU=SILVER 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

Growth in Mobile-Centric Societies

Sources: Mary Meeker, KPCB, Morgan Stanley, Gree & CyberAgent

“IT’S LIKE THE INTERNET WITH MORE ZEROES” DAVE MORGAN, CEO, SIMULMEDIA@DAVEMORGANNYC

• Internet comprises <20% of US ad spend

• TV still dominant medium for spending

• Argument goes: TV is the “scale solution,” with social it is also the smart-buy

0

50

100

150

200

US Media 2011

IAB/PwC Kantar MagnaInternet

$171

,700,0

00

2011 US Ad Spending

$144

,000,0

00

$162

,000,0

00

$31,7

00,00

0

WHAT BRANDS 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

Top Internet Ad Categories

Source: IAB/PwC 2012


Engaging the Ecosystem

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


CURRENT STATE

Capital

TechnologyAgency

Marketer

Well Established Value-Creating Relationships


THE GEEKOSYSTEM

Defining and Developing A Value-Creating Ecosystem

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

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 BuyProctor & Gamble

A NEW WAY TO LOOK AT MEDIA BUYING AND PARTNERS:

SCALE+ ADAPTIVE+ ADVISORY+ PARTNERS+ STRATEGIC+ VALIDATION


CHANGE IS EVENT DRIVEN


Huge Thanks to The SocialTV Ecosystem

Adam BroitmanCirc.Us

Adam BurgDigit

Mark GhuneimTrendRR, Wireset

Lori SchwartzWorld of Schwartz

Thank you. Let’s Make Stuff Happen.

ANTHEM WORLDWIDE77 Maiden LaneFourth FloorSan Francisco, CA 94108

digital.anthemww.com@anthemwwFacebook: Anthem

@MarkSilva on Twitter, LinkedIn & Facebook+RealMarkSilva on Google & Skype

Awesome compendium of links for the space:

http://bit.ly/SocialTeeVee