Report: Facebook and Twitter Battle for Social TV Ad Space

smarttvlogo How important will Facebook and Google be in the future of Social and Connected TV?  The report by Futurescape, entitled <takes a deep breath> Social TV: How Facebook, Twitter and connected television transform global TV advertising, pay-TV, EPGs and broadcasting, details how these technologies, and specifically, their battle for a user’s social graph, will deeply affect the way that we watch and monetize television in the future.

According to the report, whoever is able to establish themselves as the primary way to connect with friends and exchange information will be able to take a dominant position in advertising and recommendation system in newly connected TVs.   Specifically, the position would include leadership in “socially-targeted TV advertising, pay-TV content recommendation, TV show marketing, next-generation EPGs and interactive viewing.”

We’ve been seeing a series of large web companies and television technology companies announce a new wave of connected televisions in the last year.  Google TV, Yahoo Connected TV and a series of Apple applications dedicated to connecting your television with friends have been gaining popularity, and we haven’ seen too much information about how this is going to change the advertising world.  Futurescape contends that this domain is going to be owned by one of the social networks, and their analysis seems well-informed.  A segment of their summary is given below:

This rise of social television particularly benefits the main social networking services, Facebook and Twitter, so that they are now rivals for multi-billion dollar segments of the international television market.

* Facebook aims to tap the $180bn worldwide TV ad market – Google TV and other connected TV systems will put Facebook and Twitter targeted ads on TV screens
* Global pay-TV, estimated at $250bn in 2014, needs social recommendation and discovery services because these encourage viewers to subscribe to more expensive packages and buy more video-on-demand – Facebook and Twitter are both major providers of social data
* Middleware and EPG providers similarly need social network data for recommendation and discovery – the European EPG market alone will be worth $555m by 2014
* Facebook and Twitter buzz affects 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
This report maps out the emerging social TV landscape and analyses how the battle over social TV between the social networks, and other Internet companies such as Google, permanently transforms the TV market, as connected television arrives in our homes.

You can see more details about the pay report here.