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1. Inventory + Ad Serving Christina Faurie Manager, Asset Management 2. Sales + Pricing Troy Somero Director, Sales Plan

1. Inventory + Ad Serving Christina Faurie Manager, Asset Management 2. Sales + Pricing Troy Somero Director, Sales Planning. 1. ESPN Digital Inventory & Ad Serving. What is Inventory? Why is it Managed? How is it Managed?. What is Inventory?.

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1. Inventory + Ad Serving Christina Faurie Manager, Asset Management 2. Sales + Pricing Troy Somero Director, Sales Plan

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  1. 1. Inventory + Ad ServingChristina FaurieManager, Asset Management2. Sales + PricingTroy SomeroDirector, Sales Planning

  2. 1. ESPN Digital Inventory & Ad Serving

  3. What is Inventory?Why is it Managed?How is it Managed?

  4. What is Inventory? Assets (stuff with value) that are ready or will be ready for sale

  5. Display Ad Impressions Display & Mobile Ad Server 1st PARTY Display, Mobile & Video Data Tracking Page View Unique Viewer Video Ad Server 3rd PARTY

  6. Why is Inventory Managed?

  7. The ESPN Pie

  8. 4.5+ Billion (Impressions/mo.) The ESPN Pie

  9. 55+ Billion (Impressions/yr.) The ESPN Pie

  10. The ESPN Pie

  11. The ESPN Pie

  12. How is Inventory Managed?

  13. Inventory Management Tools AD SERVINGDATA ANALYTICSREPORTING

  14. Forecast Considerations • Historical Data • Site Design • Page Design • Ad Serving • Ad Execution • Programming Changes • Current Events

  15. Year 1 Event Delivery Curve

  16. Yr. 1 vs. Yr. 2 Event Delivery Curve 80% traffic decrease

  17. Year 2 Event, Schedule Adjusted 35% traffic decrease

  18. Value of Schedule Adjustment 500% capacity swing

  19. The U.S. Open Golf Championship • Year 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

  20. 2. ESPN Digital Sales and Pricing

  21. 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

  22. 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

  23. 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

  24. 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

  25. 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

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