Social TV helps to drive Television Advertising growth

Posted by Gianluigi Cuccureddu SMP in Writers on December 10, 2010  |  1 Comment More from this author  |    |  Follow Gianluigi Cuccureddu SMP on: Facebook | LinkedIn | Twitter |

Just as social networking reshaped the online landscape we at AppMarket.tv feel the same will come for television. The convergence of TV, internet and social media is an awesome (revenue) model and those who adapt and understand this new environment, will gain the biggest shares.

There is still a continued, strong demand among marketers for commercial time on television, unlike the newspaper format -which shifts from print to web-  people still like to watch television on their TV sets in addition to new platforms. Digital TV, HDTV and DVRs have helped drive new interest, as well as the advent of social media.

The NYT elaborates in one of their articles the power of television and "how television viewership is being propelled by people who are increasingly watching certain shows to share comments with friends and family in real time on social media like Facebook and Twitter."

Von adds to this subject:

Facebook and Twitter are especially powerful tools for influencing what viewers choose to watch – something conventional electronic programming guides (EPGs) are no longer equipped to handle. The flood of nontraditional content, from YouTube videos to targeted long-form ads to Web-based applications, has overwhelmed the EPGs that accompany most cable and satellite TV services.

Colin Donald, Futurescape principal analyst, said:

“Facebook and Twitter buzz influences TV ratings, while broadcasters that use the social networks for viewer engagement are effectively sharing their audiences with them. The social networks know in real time how people react to TV programming. This is an essential supplement to Nielsen-type viewing data."

Furthermore Donald elaborates following on Futurescape report:

“The social TV future is one in which all the major television industry players – IPTV, cable and satellite operators, middleware providers, CE manufacturers, broadcasters, studios and advertisers – must negotiate new relationships and resolve unanticipated challenges in order to seize major commercial opportunities."

Social TV will reshape broadcasting, having to take into account, but moreover, benefit from user input and will to co-create an direct (on content) or indirect (on context) incremental experience. The fear of fragmenting and decreasing revenue on content and advertising is partially due to the unknown, partially incorrect.

Von reports that "the global pay-TV market is estimated to reach $250 billion by 2014, and embedded social-media applications will be a key factor in determining which players gain the biggest share." It's a matter of engagement that indirectly fuels advertising revenues. It's about taking the target groups into consideration in co-creating the TV experience, be it in whatever phase of the innovation process.

Reasoning from the co-creation point of perspective, also content and formats can generate revenue. Involve the end-user in shaping the format and consuming that format and two birds are killed with one stone: loyalty/engagement and revenue generation in terms of advertising, virtual goods and so on. Two examples of social technology companies that support social TV and co-creation are Talentsmedia and ExMachina.

As stated at the beginning of the article, social networks and the open environment will mould the future the television industry, new relationships are key and existing ones and full control over content are to dissapear. That's a fact, not a possibility.