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

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 Page View Display Ad Impressions

Why is Inventory Managed?

The ESPN Pie

6+ Billion (Impressions/mo.) The ESPN Pie

72+ Billion (Impressions/yr.) The ESPN Pie

What? Demo Geo Behavioral In-Market

1 st PARTY 3 rd PARTY How?

Unique visitors: 52.2 MM /month Total Views: 2+ BN /month HP Views: MM /day Sites: 13 Sites [National (1), Local (5), International (3), Affinity (4)] Platforms: 3 Platforms [Display, Mobile, Video] Products: 8,000+ products Ad sizes: 15 sizes WatchESPN: 3,500+ live events Behavioral: 200+ Targeting Categories 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

Seasonality ESPN - InContent - NFL - Homepage Sponsorship

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