- Language: English
- 260 Pages
- Published: October 2012
- Region: Global
US Social TV Revenue Opportunities
- Published: December 2012
- Region: United States
- 37 Pages
- Multimedia Research Group (MRG, Inc)
Television is in the midst of a disruptive phase of transformation that will ultimately change how the medium operates. The availability of TV content and the way people consume it will change, gradually but inevitably, and TV will evolve into a popular social (i.e., interactive) medium.
Today, social TV is one of the hottest trends in social media as more than half of all TV viewers in the US regularly use a second device while watching TV. Many nationally-broadcast live events generate tens of millions of social media comments, and brands have begun to sponsor social interaction as part of their ad spending during those events. However, despite explosive upward trends in this social behavior, advertisers remain wary of devoting new spending to social TV. Concrete metrics measuring return on investment are necessary. Although those metrics are beginning to appear, social TV revenue growth will be limited until they are widely adopted.
MRG has identified four revenue-generating sectors within the social TV business:
- Social TV advertising
- Social TV metrics and ad-targeting companies
- Consumer spending on social TV retail apps
- Social TV app licensing
This report takes an in-depth look at the social TV environment, including emerging business models, strategies and companies involved. Also presented is a five-year forecast for US revenues, segmented by the four sectors outlined above. SHOW LESS READ MORE >
Social TV Market Dynamics & Forecast
Takeaways for TV Ecosystem
Social TV Forecast
What It Means
Social TV Platform Companies Lack Revenue Focus
Social TV Platform Strategies
Social TV Platform Business Models Taking Shape
Will Platform Providers Win?
Social TV Apps Have Short-Term Market Lead
Mobile Second-Screen vs. The connected TV
Check-In and Gamification
Guides and Discovery Services Become Social
Social Guide Challenge: Scaling Up
Social TV Needs Response Metrics & Media Planning
Table of Figures
Figure 1. Social TV Ecosystem.
Figure 2. Social TV Takeaways for TV Ecosystem Participants
Figure 3. US Social TV Revenue Forecast, US$ in Millions, 2012-2016.
Figure 4. Sharing Categories and Features of Social Video Users
Figure 5. Mobile Devices are Popular Companions for TV Viewers in All Age Demographics
Figure 6. AOL's HuffPost TV Site.
Figure 7. ABC Television's Oscar Backstage Pass App.
Figure 8. Enter AMC Network's StorySync Second-Screen App.
Figure 9. Comcast Xfinity Preliminary Social Interface.
Figure 10. Social TV Acquisitions 2011-2012.
Figure 11. Social TV Apps Differentiation.
Figure 12. Social TV Apps: Check In.
Figure 13. Features, Strengths and Challenges for Social TV Discovery & Recommendation Apps
Figure 14. Social Analytics from Trendrr in AdAge Social TV Reporting.
Figure 15. Social Guide's SocialGuide Intelligence Dashboard.
Figure 16. Bluefin Lab's Social TV Metrics for 2012 Academy Awards Telecast
List of Tables
Table 1. US Social TV Revenue Forecast, US$ in Millions, 2012-2016.
Social TV is one of the hottest trends in social media. Since 2007, when the iPhone appeared (and later the iPad) and gave TV viewers a convenient social media companion device, social media activity while watching TV has soared. Today, more than half of all TV viewers in the US regularly use a second device while watching TV. Many nationally--broadcasted live events generate tens of millions of social media comments, and brands have begun to sponsor social interaction as part of their ad spending during those events. Genre or specialty TV programming generates smaller numbers of social comments, but attracts groups of habitual viewers that sustain their interactivity over weeks and months of a program's distribution.
Despite the explosion of social media activity related to TV, the majority of advertisers remain wary of devoting new spending to social TV. Until there are better metrics that measure social TV in terms of return on investment, advertisers will continue to treat it as a specialty category. Those metrics are beginning to appear, but social TV revenue growth will be limited until those metrics are widely adopted.
MRG has identified four revenue--generating sectors within the social TV business:
- Social TV advertising will generate $XX million in 2012, and as metrics and ad--targeting capabilities improve, will grow to $XXX million in 2016.
- Social TV metrics and ad--targeting companies will ramp up during this period, with revenue growing from $XX million in 2012 to $XXX million in 2016.
- Consumer spending on social TV retail apps will also increase, driven by the expansion of the mobile device market, from $XX million in 2012 to $XXX million in 2016.
- Social TV app licensing will also be driven by the mobile device market and by the steady conversion of the TV market from "dumb" to "smart." Connected TVs and devices that provide services to TVs (set--top boxes, DVRs, game consoles) will become the largest TV app licensing categories. Licensing will grow from $XX million in 2012 to $XXX million in 2016.
- Overall, revenue at US companies from social TV related business will grow from $XXX million in 2012 to $X billion in 2016.
This report provides an overview of the social TV market and drivers affecting growth of revenue in this market. As an emerging market, social TV is made up of several early--stage segments that are evolving from adjacent markets, such as mobile apps and online advertising, or are appearing for the first time, such as social TV metrics services. Since the social TV business is most mature in the US geography, the report is limited to the US market. Data collection for the report is based on primary research with analysts and executives active in social media and in online content creation and distribution. Market sizing and trend calculations are based on secondary research from a variety of reputable industry sources and use conservative assumptions. A wide variety of secondary sources were used to assemble current market status for key social TV companies.