MAD Perspectives Blog

 Monetizing SocialTV

Peggy Dau - Tuesday, February 26, 2013

I was fortunate, last week, to attend's Social TV Salon in London. They provided a comfortable, engaging forum to articulate the impact of Social TV and how the various participants across the value chain benefit from the increasing use of the second screen. Speakers included Nigel Walley of the Decipher Group, Dan Biddle of Twitter, Stian Kleppo of Viasat and Scott Davies of

The keys to success in the second screen are discovery and engagement. The number one activity being pursued by viewers when using a second device while watching TV is to discover programming. Honestly, it's that basic, especially when the dominant second device is the remote control. With all the reports extolling the use of smartphones and tablets, we've forgotten that the most important device is the remote. What do we use it for? To change channels, look at the program guide, search for on-demand or recorded content or change the volume.  As a result Social TV apps are primarily focused on discovery and engagement.

Who makes money in this effort to increase viewer enjoyment of TV programming? Anyone along the value chain for creating and delivering the content. This includes: program producers, broadcasters, platform providers, device manufacturers and 3rd parties.

     - Immediate Value is derived from revenue generated through program sponsorship, app sponsorship, in-app advertising, banner ads synchronized to programming and targeted ads

     - Long Term Value is earned through improving syndication sales, increased audience, increased value for linear spots, audience sharing of content.  

An unsung enabler of social interaction is the hashtag, #, which has emerged as the tool to draw attention to trending content. It draws audiences together while enabling brands, broadcasters and producers to track conversations and create calls to action. The hashtag activates interaction which is measured and used to define success or identify opportunities for new content production (e.g., advertising or scripted programs).

Monetization in this space will continue to evolve. New advertising opportunities will continue to emerge as the second screen allows for advertising that complements, yet does not interrupt on-air content.

What's your perspective?