CONTACT Joe Paglino VP Advertising Sales Discovery Communications
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CONTACT Joe Paglino VP Advertising Sales Discovery Communications, LLC 17 years of experience at Discovery after working 10 years on the advertising agency side as an Account Executive and Media Planner/Buyer. DISCOVERY COMMUNICATIONS Discovery Communications (Nasdaq: DISCA, DISCB, DISCK) is the world's number one nonfiction media company reaching more than 1.5 billion cumulative subscribers in over 170 countries. Discovery empowers people to explore their world and satisfy their curiosity through 100-plus worldwide networks, led by their Discovery Channel flagship network. Discovery Channel Discovery Channel (DSC) is dedicated to creating the highest quality non-fiction content that informs and entertains its consumers about the world in all its wonder, diversity and amazement. The network, which reaches 99.8 million viewers in the US, can be seen in over 170 countries, offering a signature mix of compelling, high-end production values and vivid cinematography across genres including, science and technology, exploration, adventure, history and in-depth, behind-the-scenes glimpses at the people, places and organizations that shape and share our world. DETROIT ADVERTISING SALES OFFICE Detroit is one of five Discovery Regional Sales Offices throughout the country (New York, Atlanta, Chicago and Los Angeles are the others). The Detroit office sells advertising opportunities across Discovery Communications entire portfolio of cable networks and digital/ancillary assets to the advertising community. Cable networks include Discovery Channel, TLC, Animal Planet, Travel Channel, Planet Green, Science Channel, Investigation Discovery, Military Channel, Discovery Health, Discovery 3D, HD Theater, Discovery FitTV, Syndication, HUB (launching in fall 2010), and The Oprah Winfrey Network (OWN) coming in January of 2011, as well as leading consumer and educational products and services, and a diversified portfolio of digital media services including DiscoveryNews.com, TreeHugger.com, HowStuffWorks.com and PetFinder.com. Ancillary assets include Discovery Stores, Education, Discovery Studios (in-house production unit), Discovery Adventure Tours, Custom Research, etc. WHAT THEY SELL Discovery is synonymous with entertaining high-quality original content, and its program sales catalogue is one of the most extensive in the industry. Covering an unmatched range of nonfiction genres including factual entertainment, animals and nature, science and engineering, crime and investigation, lifestyle, health and world affairs from across a wide portfolio of networks, including flagship Discovery Channel, Animal Planet, TLC, Planet Green, Investigation Discovery and more, Discovery captivates audiences with some of the most invigorating content in the industry. At the crux of the Discovery brand is high-quality blue chip documentaries that traverse the globe, satisfying curiosity and captivating audiences. Fundamentally they sell their content, ratings and each networks unique audience demographic (i.e., Men 18-49, Adults 25-54, etc.) and pshychographic (i.e., bought or leased a car in the last 6 months and watched Discovery Channel in the past week) compositions (both on television and the web) to national marketers/advertisers. Products, sponsorships and marketing elements are wide ranging and diverse. They include traditional in-program commercial units and billboards to custom co-branded content. A sample of some of the television elements available to advertisers are listed below..... On-Air Elements In Program Units - :15, :30 and :60 second commercial units and billboards... Tagged Tune-Ins - opportunity for advertisers to promote a specific program, special or stunt. Primary purpose of the spot is to drive tune-in to program. Spot ends with a standard :05 advertiser tag, followed by a commercial adjacency. Enhanced Tagged Tune Ins - primary purpose of the spot is to drive tune-in to program, however, creative can be customized to convey advertisers brand messaging. Custom Vignette - opportunity for a sponsor to tap into the brand equity of the network or program while creating relevant content that supports sponsors brand messaging. Typically a :25 vignette with a :05 sponsor tag. Co-Branded Unit - :30 or :60 second commercial units produced by the network and are fully customized to blend the messaging of the network and the advertisers brand. Podbuster - 2-part segment that spans a commercial break. Part 1 is leading into a commercial break and part 2 is at the end of the break before the program comes back. Voice-over/script is usually trivia that ties to the program. Sponsor logo and verbal mention are usually in part 1 and just logo identification is on part 2. In-Program Mentions - IPMs are lower third graphics that appear during program time. IPMs can give the viewer information brought to you by the sponsor, use the sponsors product or images to animated on the screen, can drive viewers online or give a brief factoid to the viewers. Presenting Sponsorship - advertiser can be presenting sponsor of programming stacks or theme nights and typically receive custom opens to the program(s). Integrations - opportunity for an advertiser to be incorporated into an episode. Integration must be organic to episode/content Roadblocks - commercials can run on multiple networks with commercials airing during the same time period. Digital Media Digital extends Discovery Communications’ ownership of nonfiction entertainment to digital media devices around the world, delivering an extensive library of high- quality programming and footage via the web, mobile devices, video-on-demand and broadband channels. Discovery Digital Media gives consumers an unparalleled opportunity to explore their world like never before. A wide and diverse set of sponsorable elements are available on the digital platform. TO WHOM THEY SELL The Detroit Office is responsible for the east/central region of the country. A diverse base of national advertisers include accounts such as Smucker's, KFC, Wendy's, Goodyear, Sherwin-Williams, Kellogg's, Owens Corning, Heinz, Proctor & Gamble, Progressive Insurance, Domino's, Ford, GM, Chrysler, etc. HOW THEY SELL Customized media plans or schedules that deliver a specific target audience are developed for each network and then reviewed by the respective Media Buyer representing the advertiser. Buyers are fundamentally looking for effective reach and frequency against a desired target (i.e., Men 18-24). Media audience measurement or estimates are provided by Nielsen. Program ratings (percent of the target universe) derived from the Nielsen estimates are assigned to each program. Media Buyers buy ratings points which are valued or negotiated on a cost-per-thousand (CPM) basis or cost per rating point (CPRP). Cost per thousand represents the relationship between the size of the program or schedule's audience (measured as households, adults, teens, etc.) and its cost in time or space. It is used to compare the cost efficiency of one network buy over another network buy. Of course, the purpose is to gain the largest audience at the lowest cost. The cost is calculated per thousand to provide workable dollars-and-cents figures that are easier to compare. Fundamentally the higher the program ratings, the higher the cost for a: 30 second spot. Gross ratings delivery is typically guaranteed to advertisers. If audience delivery falls short of the guarantee then "make goods" or no-charge units are then provided to the advertisers in order to fulfill the impressions originally guaranteed by the network. A number of factors will determine the overall cost (or CPM) of the schedule; time of the buy, custom elements involved, size of the budget, expansion/cancellation options, number of networks involved, day parts (i.e., "primetime" is more expensive than "daytime" or "late night" because the program(s) in prime will deliver a larger audience for advertisers). Buyers can buy media time in a variety of ways..... Media Marketplace Broadcast Upfront - commitments covering 3-4 quarters are made in advance and tied to the introduction of a new season of programming. Advertisers usually get a discount for committing in advance, however, supply (of inventory) and demand (how much dollars are working in the marketplace) have a major influence on costs. Additionally, agreements typically include specific "expansion" and "cancellation" options and a number of clauses specific to each business. Calendar Upfront - same as above except the media is bought on a "calendar" basis when a schedule runs from January through December. Scatter Market - deals are bought/negotiated closer to a commercial schedule, usually 2-4 months in advance of commercial air date. Scatter market costs are usually higher than upfront costs because networks typically have less inventory to sell and can charge a premium. HOW THEY PROMOTE Consumer versus Trade Consumer Target - Discovery buys national media in all forms (television, outdoor, print, web, etc.) promoting their programming in order to increase awareness of their shows and increase viewership overall. Additionally, they utilize their own networks with additional tune-in and promotional messaging in order to retain current/loyal viewers. Trade Target - Discovery buys Advertising Trade media vehicles (print, web, gorilla marketing, etc.) targeting Media Planners and Buyers in order to influence their media buying decisions. Ratings success stories, competitive network comparisons and research highlighting the composition