THE TIPOFF

TV Content goes Social

TODAY’S CONVERSATION IS ABOUT 3 THINGS

CPG to Entertainment Marketing Embracing deeper

levels of social interaction

CPG to Entertainment Marketing

From Consumer Packaged Goods Company to Entertainment Media Company

Or….

From Coke to ESPN

We all love sports

And Brands love sports too

Coca-Cola has the benefit of Maslov’s hierarchy of needs

But I would argue the hierarchy is this way for many people…

After all, we are a nation of Sports Fans For more than 15 years, nearly 9-in-10 Americans have been

sports fans.

Today, there are 222 MILLION SPORTS FANS.

86% 86% 89% 88% 86% 85% 87% 86% 87% 87% 88% 88% 89% 90% 88% 86%86%

176 179186 186 188 187

192 193201 203

210 212219

226222219 222

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

PCT

US

P12+

150

160

170

180

190

200

210

220

230

240

250

P12+

(mill

ions

)

Pct U.S. P12+ P12+ (millions)

Source: ESPN Sports Poll 1994-2009Fan = Self-score of 1-10 on 0-10 scale

ESPN is the most well known brand in sports In total, the ESPN brand (with Monday Night Football and its sub-brands) is the most well-known

brand in sports, SURPASSING such elite brands as THE OLYMPICS, THE NFL, GATORADE, AND NIKE.

27%44%

45%57%

61%63%

70%70%71%

74%75%

77%80%

81%83%

85%88%

88%94%

95%

Versus

HBO Sports

MLS

Spike TV

NHL

ESPN on ABC

CBS Sports

NBC Sports

TNT

Fox Sports

NASCAR

Sports Illustrated

MLB

NBA

Adidas

Nike

Gatorade

NFL

Olympics

ESPN

Very familiar

Somewhat familiar

Sub-brandsSource: ESPN Brand Reach Study April 2010

And ESPN gets high marks on the brand curve Nearly 3/5 OF CONSUMERS say ESPN is at its peak with another 1/5 seeing it on the way up.

THE PROPORTION OF CONSUMERS WHO SEE ESPN AS “ON THE WAY DOWN” IS AT A RECORD LOW

11%A. On its

way up, still rising

quickly

10%B. On its

way up, but rising more

slowly

61%C. At its peak and will stay

there for a while to

come

10%D.

Nearing the end of its peak 5%

E. Has dropped some, but still at

a high level 2%F. Has dropped

a lot

ON ITS WAY DOWN17

%

AT ITS PEAK61%

SAY IT’S ON THE WAY UP22%

Source: ESPN Brand Health Tracker Q4 2010

And has an overwhelmingly favorable standing vs our rivals

Source: ESPN Brand Health Tracker (Aggregate Across Q2 ‘09 – Q3 ‘10)* Q: Based on everything you have seen or heard about each of the following networks for their sports programming, how you would rate each one? Please use a scale from 0 to 10, where 0 means poor and 10 means excellent.

THREE-QUARTERS OF AVID SPORTS FANS RATE ESPN 9 OF 10, far surpassing its competitors.

% 9-10 RATING AMONG AVID SPORTS FANS FAMILIAR WITH EACH BRAND (Q3 ‘10)

72%43%

41% 33%

32%

30% 29%

25%

23%

In the CPG world your product offering changes more slowly

Where with entertainment companies like ESPN, the # of brands grows fast

And the number of sub-brands explodes

At Coca-Cola distribution channels stay pretty constant

MOBILEMOBILE

While at ESPN the number of distribution channels is exploding …Sports fans have more options than ever to STAY INFORMED AND

CONNECTED—and the rate of change is ACCELERATING.

10 YEARS AGO 2011

TV

ONLINEONLINE MOBILEMOBILE

RADIORADIO PRINT RADIORADIO

ONLINEONLINEFANTASY

STREAMING VIDEO

STREAMING AUDIO

VIDEO GAMES

DIGITAL MAGAZINES

TEXT ALERTS

MOBILE WEBSITESSOCIAL

NETWORKS

APPS

TV

PRINT

As a result, it’s never been a better time to be a sports fan, but it’s also never been harder for us

FACEBOOK lets you show your true colors as a fan—red in summer, blue in winter!

EVEN MADDEN HAS A TICKER so you can keep track of what’s happening in real games.

I always have the TV on, but I’ll have my laptop open if i need to find something quickly.

IT’S SO MUCH EASIER AS A SPORTS FAN TODAY, IT’S ALL ABOUT INSTANT GRATIFICATION.

I wasn’t into soccer until my roommate got me playing FIFA on our Xbox—I WATCHED MORE WORLD CUP BECAUSE I ACTUALLY KNEW SOME PLAYERS!

MY PHONE IS THE BEST WAY TO BE A SPORTS FAN BECAUSE I ALWAYS HAVE IT.

So how do you succeed in a world of proliferating brands and platforms?

MOBILEMOBILE

RADIORADIO

ONLINEONLINEFANTASY

STREAMING VIDEO

STREAMING AUDIO

VIDEO GAMES

DIGITAL MAGAZINES

TEXT ALERTS

MOBILE WEBSITESSOCIAL

NETWORKS

APPS

TV

PRINT

But a brand isn’t just a logo…

BRAND IS THE ULTIMATE NAVIGATOR

It’s about a consistent BRAND PROMISE:

SPORTS with AUTHORITY and PERSONALITY

What we do How we do it What sets us apart

ESPN sometimes is less of a “face painted fan” and more of a “slick money man”

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SPORTS FANSPORTS AGENT

But we work hard to be more of a SPORTS FAN than a SPORTS AGENT

Success and size will push us to the left

So we need to constantly push to the

right

TV Content goes Social

Sports is Social

ESPN is the biggest sports fan

ESPN talks with fans, not at them

ESPN takes sports seriously, but we don’t take ourselves too seriously

ESPN entertains and informs, surprises and delights our fans

Treat promo as content – reward fans for every interaction

Several Tactics to be more Social and combat the “Sports Agent” perception

MNF STOREFRONT

DISPLAYS

NBA RV TOUR

WINTER XGAMES HELMET CAM

1. Let fans touch the brand:

2. Poke fun at ourselves:

PHELPS AD

3. Launch a brand campaign:

“The goal of the campaign is to demonstrate our love of sports, and how ESPN employees view ourselves as the world’s biggest sports fans.”

“ROLL TIDE”“ROLL TIDE” “FANWICH”

ESPN’s Brand campaign celebrates exceptional truths in sport

• 351,707 new “Likes” on ESPN page

• 194 fanwiches submitted

• 41,447 votes in 4 weeks

• Fans from 39 different states submitted sandwiches

• Highlighted via sports celebrity endorsements, foodie blogs, local news affiliates and radio shows, online articles

ESPN Facebook Page

Relate Remind fans we love sports just as much as they do

EmpowerProvide fans a forum to express their opinions and allegiances

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RewardRecognize fans for their contribution to the community

Facebook is the quintessential social network, connecting people with their family, friends, and interests. As a brand, we need to fit in and add distinct value to the community.

@ESPN Twitter Feed

Real-time MarketingDrive engagement with live content

Highlighting TalentAmplify talent analysis and perspectives

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• Twitter is an “information network.” Though interaction is important, people also use it for real-time information and access to personalities and perspectives.

• Our goal is to become the primary “curator” of sports tweets on Twitter. In doing so, we seek to capitalize on our live programming and talent to engage fans.

ESPN YouTube Channel

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• YouTube is the hub of social video on the Web. Short-form, easily consumable content, often submitted by users, is what generates views.

• Our content strategy is tailored to how fans use the platform.

Social HighlightsProviding only the most relevant, extraordinary moments in a highlight

Original Content

Creating unique ESPN content that emphasizes our brand personality

SPEAKING OF, SOCIAL ALSO PROVIDES US A DEEP AND POWERFUL TOOLKIT TO BE “THE FAN”

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6

Setting guidelines and sharing learnings

THANK YOU!

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Questions and Discussion