Ad Sales Strategy for Digital Networks
•
Digital Networks represent a strong growth opportunity for our Ad Sales business
–
–
–
•
However, online video advertising is in its infancy and is still experiencing
growing pains
–
–
–
•
New advertising dollars continue to flow into the digital space
Sony is well positioned to attract advertisers seeking quality content and a more controlled
environment
A breadth of digital channel offerings (FunnyBone, AXN, Crackle) allows us to provide a portfolio
of distinct platforms to deliver greater targeting / messaging
Distribution partners lack consistency in ad serving technologies and ad units
“Break-out” advertising creative has not yet been established
Advertisers are beginning to come to the space, but large-scale growth requires greater scale
and quality of content
SPTAS will continue to enhance operations and improve advertisers’ experience
with online video to drive growth in revenues
–
–
–
Creating consistent ad units and measurements to standardize sales and reporting
Establishing a single ad-serving platform
Integrating networks and leveraging content to deliver desired audience and experience to
advertisers
Crackle Revenue Plan
Key
Learnings
and
Response
Early
Success w/
Crackle
Model
[NEW]
• Market did not develop as quickly as expected; advertisers looking
for differentiated, controlled experiences
• Modified model to focus on higher quality, prosumer content
• Executed necessary operational deals (24/7 for ad serving)
• Integrated with 4 international rep partners covering a large
percentage of monetizable inventory
• Secured 5 Blue-chip advertisers: Pepsi, Honda, Sony, Ford &
Epson
• Additional $2MM in pipeline
Key
Strategy
for MRP
• Emphasize Crackle’s higher quality content and controlled
environment to attract top advertisers
• Focus on sponsorships; continue to modify ad units and targeting
tools to meet advertiser needs
• Drive additional revenue through international rep firms and use
24/7 to compete with video ad networks
Overview of Ad Sales Environment
•
•
•
[NEW]
Evolution in Traditional TV marketplace is creating growth opportunities
–
Upfront marketplace bounced back after two years and scatter marketplace is showing strength
–
Television ratings currency is changing; but reformatted commercial placements are allowing us
to maximize ad dollars
–
Although decreased total rating points in the market create challenges for programming,
television is becoming more valuable for ad sales
We continue to seek growth in Satellite and 10 second opportunities, despite challenges
–
Although challenging to penetrate, we continue to pursue opportunities in the Satellite space
–
Bring studio portfolios for :10 representation remains difficult; we are addressing by selling
program-by-program (like :30s)
We are driving additional growth by expanding beyond Traditional TV
–
Increased 3rd party representation
–
HD advertising marketplace still growing
–
Emerging opportunities in digital ad sales
–
Growth in new platforms, including in-game advertising
Page 63
SPT’s Ad Sales Businesses Will Continue to Grow
[NEW]
 Hold back inventory and maximize dollars with higher scatter pricing
Syndication
 Bring on new advertisers, leveraging digital assets and new opp.
 Developing custom metrics with Nielsen to acquire new ad partners
 Expand client list with traditional :30 buyers
The :10
Solution
 New program representation opportunities (Crosswords)
 Create Upfront marketplace for :10 business
 Continue to build Hi-Def ad sales with MOJO, seek new HD nets
3rd
Party
Representation
 Focusing on Cable: Tennis Channel/Trio, Gospel Music Channel
 MRP includes $10MM in 07/08 sales and $20MM in annual sales
thereafter
 Create digital sales verticals: MUSIC, ENTERTAINMENT and GAMES
Digital
 Position MINISODES as digital network across all platforms
 Establish SPTAS as SPE’s digital ad sales group – currently
representing SonyBMG, talking with Playstation
Page 64