Microsoft first entered the living room with Ultimate TV way back in 2000 - a year before Apple's first iPod was announced. Ultimate TV offered consumers a DVR and supporting online services, including 14 days of programming and the ability to record 35 hours of programming. Microsoft's reach was then thwarted when Echostar acquired DIRECTV.

To effectively reach consumers in the new social environment, brand managers need to learn how to translate their budgets into the digital realm, which also means understanding the advantages that digital can provide over television advertising.

Television programming is the number one topic on Twitter, and dozens of start-ups in the social space are linking second-screen experiences. People no longer need to sit on the same couch to enjoy a show together.

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