Social Telly: Television & Social Media by Vincent Letang
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Social telly Television and social media Vincent Létang, Senior Analyst, Head of advertising London, February 8, 2011 Social Media Week
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Slides from Vincent Létang, Senior Analyst, Head of Advertising at Screen Digest from the The Future of TV Advertising: Keeping It Social that took place on Tue 8th Feb during Social Media Week London.For more info on the event:http://chw.ag/EQx
Transcript of Social Telly: Television & Social Media by Vincent Letang
Social tellyTelevision and social media
Vincent Létang, Senior Analyst, Head of advertising
London, February 8, 2011Social Media Week
Copyright © 2011 IHS Inc. All Rights Reserved.
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• Now part of the IHS group.• Market research, online databases, reports, consultancy.• An impressive client list: content providers, technology
vendors, investors. Advertising Intelligence
About Screen Digest
Copyright © 2011 IHS Inc. All Rights Reserved.
Television: a social media?Some thoughts (1)
• TV advertising is challenged from various sides: outgrown by pay TV revenues globally, and outgrown by online advertising in advanced markets (e.g. UK)
• TV broadcasters need to innovate to keep up with advertisers expectations in the digital age (accountability, scalability, interactivity etc)
• Television is ‘the’ original social medium (event, community, coffee-machine chat, reality TV voting)
• Next step is real-time, many-to-many, monetizable interaction
Copyright © 2011 IHS Inc. All Rights Reserved.
Television: a social media?Some thoughts (2)
• There already are measurable, large scale, return path platforms for social usage: • FB and Twitter on laptops and smartphones (e.g. 2010 election debates)• Tablet PCs will bring that pattern to another level: 8m users by 2014
• Connected TVs will create further scale and new opportunities by bringing social tools/brand into the TV
• Addressable linear advertising technologies (DVR-based or IP based) combined with social features generate new marketing opportunities• Addressable TV plans are currently demographics or preference-based• ‘socially-targeted’ ads would increase engagement further
• However, telly still has a future as a largely passive, family entertainment ad-funded medium: 2010 was a record year for TV-viewing across Europe
Copyright © 2011 IHS Inc. All Rights Reserved.
Television: a social media?Some thoughts (3)
• A very open and competitive market place
• Traditional TV players/brands (channels, programme brands, pay TV providers, EPG operators) fight to maintain the control of how TV gets social (e.g. the ‘anti Google TV’ cartel of virtually all broadcasters in France and the US.
• They are already doing well in keeping control of key online VOD rights and monetizing them.
• Relaxation of branded content and product placement creates further opportunities
• But internet giants see connected TVs as their Trojan Horse into the living room
• Consumer electronics manufacturers may have to take sides in that battle
Copyright © 2011 IHS Inc. All Rights Reserved.
TV advertising: a mature market
• Linear TV advertising suffered slow growth in the 2000s• Pay TV has already outgrown advertising as the main form of funding for
television• ‘Advanced ‘ TV advertising revenues slow to compensate
Television revenues by type, Western Europe (%)
0%10%20%30%40%50%60%70%80%90%
100%
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14Pay TV revenues Public funding Advertising revenues
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0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2008 2009 2010 2011 2012 2013 2014 2015
Total internet TV
TV advertising: a mature market
Online advertising and TV advertising in the UK (2008-2015, £m)
• Online advertising already bigger than TV (if keeping search in)• (behavioural) targeting, social and video are rejuvenating display since 2010
• Facebook reached approx. $1.5bn in global revenues in 2010 (source GS)
Copyright © 2011 IHS Inc. All Rights Reserved.
TV advertising: a mature market
Europe’s Big Five Markets: TV NAR 2009-2011
9.6% 8.7%
5.3%
1.3%
14.1%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
France Germany Italy Spain UK
2008 2009 2010 2011
• After two horrendous years (2008-2009) and the 2010 ‘mechanical’ rebound, TV ad revenues growth will slow down dramatically again in most markets
‘Advanced’ TV advertising (ATVA)
2. Online TV1. ‘Broadcast’ platforms
Online TV (ad-funded FVoD)
Mobile TV (apps, players)
Two-way, ‘walled-garden ‘platforms: IPTV, digital cable
Broadcast technologies: satellite, terrestrial
Built-in open internet TVs
3. Connected TVs
Alternative, interactive and/or addressable forms of advertising in the lean-back ‘telly’ environment
Alternative, interactive and/or addressable forms of advertising on lean-forward, personal devices
Connected devices (set-top boxes, game consoles)
On-demand TV content and alternative content, serving platform for ATVAAddressable advertising (IP cloud-based)
Red-button interactivitySTB-based pushed branded contentAddressable advertising (DVR-based)
‘Advanced’ TV advertising now available through multiple platforms
Digital Signage
Copyright © 2011 IHS Inc. All Rights Reserved.
DVRs Europe trails the US
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
USA UK France W. Europe Germany Italy Spain
2007 2009 2013
Penetration of pay-TV DVRs (2007-2013)
45%
Copyright © 2011 IHS Inc. All Rights Reserved.
Connected TV: Connected devices to be mass market by 2014
0.0
5.0
10.0
15.0
20.0
25.0
US: active connected devices (m)
2009 2014
0.0
5.0
10.0
15.0
20.0
25.0
EU 3: active connected devices (m)
2009 2014
90% of all TVs sold in Europe will be connectable by 2014
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Tablet users set to reach 8.6m by 2014
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2009 2010 2011 2012 2013 2014
UK: Tablet and iPad users (m)
Tablets iPad
