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Tuesday
November 15, 2005
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Mobile ESPN Expects Highest Wireless Deals From Sponsors

ESPN Expects To Net $2M
From Six Mobile ESPN Deals
ESPN expects to earn over $2M, or $350,000 each, from six charter sponsors of Mobile ESPN, agreements that experts characterize as the “highest-priced advertising deals in the short history of mobile marketing,” according to Andy Bernstein of SPORTSBUSINESS JOURNAL. ESPN anticipates signing 200,000-300,000 subscribers to its wireless system by the end of '06, and interactive ad agencies said that “on a cost-per-thousand viewers basis, ESPN will command close to $50” per subscription if projections are accurate. That would be a higher CPM “than even the most costly television advertising.” Sources said that Mobile ESPN already has deals in the car, technology and apparel categories, and it “expects to land additional sponsors in fast food, beer and video games.” Bernstein reports Electronic Arts, which has an exclusive licensing deal with ESPN, will be the videogame sponsor. Ogilvy Interactive Dir of Digital Innovations Maria Mandel, whose firm has one client that will be a Mobile ESPN sponsor, said, “It’s certainly a very appealing channel because it’s something people have with them 24-7. When you look at mobile, there are some types of content that’s a very good fit. I think sports is a good example.” Bernstein notes the mobile packages “can be bought as part of larger deals packaged with other ESPN media at an advertiser’s request.” However, the net has “positioned the sponsorships as stand-alone agreements” (SBJ, 11/14 issue).

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