1. Inventory + Ad ServingChristina FaurieManager, Asset Management

2. Sales + PricingTroy SomeroDirector, Sales Planning

1. ESPN Digital Inventory & Ad Serving

What is Inventory?

Why is it Managed?

How is it Managed?

What is Inventory?

Assets (stuff with value) that are ready or will be ready for sale

Unique Viewer

Display & Mobile Ad Server

Video Ad Server

Display, Mobile & Video Data Tracking

Page View

Display Ad Impressions

1st PARTY

3rd PARTY

Why is Inventory Managed?

The ESPN Pie

4.5+ Billion(Impressions/mo.)

The ESPN Pie

55+ Billion(Impressions/yr.)

The ESPN Pie

Homepage

NFL

MLB

NBA

College Football

College Basketball

NHL

Golf

Fantasy

Other

The ESPN Pie

Display

Mobile

Video

The ESPN Pie

How is Inventory Managed?

AD SERVING

DATA ANALYTICS

REPORTING

Inventory Management Tools

Forecast Considerations• Historical Data

• Site Design

• Page Design

• Ad Serving

• Ad Execution

• Programming Changes

• Current Events

Mon Tues Wed Thurs Fri Sat Sun0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Wk 2, June '08

Year 1 Event Delivery Curve

Mon Tues Wed Thurs Fri Sat Sun0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Wk 2, June '08Wk 2, June '09

80% traffic decrease

Yr. 1 vs. Yr. 2 Event Delivery Curve

Mon Tues Wed Thurs Fri Sat Sun0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Wk 2, June '08Wk 3, June '09

35% traffic decrease

Year 2 Event, Schedule Adjusted

500% capacity swing

Mon Tues Wed Thurs Fri Sat Sun0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Wk 2, June '08Wk 2, June '09Wk 3, June '09

Value of Schedule Adjustment

The U.S. Open Golf ChampionshipYear 1• 2008 Championship• Tiger Woods outlasts Rocco Mediate in Playoff

(Monday) despite ailing left knee• June 12-16

Year 2• 2009 Championship• Lucas Glover won (Phil Mickelson runner-up) despite

heavy rain throughout• Tiger Woods finish T6, 35% decrease in traffic to

section• June 18-22

2. ESPN Digital Sales and Pricing

Who does ESPN sell to?• Traditional media agencies• Advertisers directly• Direct Response• Ad Networks? Not really

Anyone with an advertising budget that wants to buy our inventory

How does ESPN determine pricing?• Advertiser history• Product/inventory being requested• Timing and seasonality• What will get the deal done?

At the end of the day, it is supply and demand

How does ESPN divide up inventory?

• By sport• By delivery mechanism (Sponsorship, Rotational)• By ad execution (Display, Mobile, Video)• By device (Tablet, Handset)

Whatever the platform is that a client wants to advertise on, ESPN will find a way to fulfill the need

What type of “targeting” does ESPN offer?

• Geo • Age• Gender• Time• Device• Browser• FRM• Third-party segmentation

All of these targeting capabilities allow ESPN to present the same inventory to clients in a variety of ways to be in the best position to make the sale

How is ESPN Sales evolving with industry change?

• Selling Digital Video to TV agencies• Bundling sponsorships together across mediums and

devices• Using the strength of the Live Sports TV marketplace

to help push Digital initiatives• Opening up internal systems to external

enhancements• Flexibility of pricing due to TV/Digital convergence

ESPN’s broad inventory pool and unique place in the industry as an inelastic property for the Male demo allows the Asset Management team to be flexible in the changing marketplace