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

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

8. Why is Inventory Managed?

9. The ESPN Pie

10. 4.5+ Billion (Impressions/mo.) The ESPN Pie

11. 55+ Billion (Impressions/yr.) The ESPN Pie

14. How is Inventory Managed?

15. AD SERVING DATA ANALYTICS REPORTING Inventory Management Tools

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

17. Year 1 Event Delivery Curve

18. 80% traffic decrease Yr. 1 vs. Yr. 2 Event Delivery Curve

19. 35% traffic decrease Year 2 Event, Schedule Adjusted

20. 500% capacity swing Value of Schedule Adjustment

21. 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

22. 2. ESPN Digital Sales and Pricing

23. 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

24. 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

25. 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

26. 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

27. 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 ESPNs 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