Although the Super Bowl has risen to the top of the TV ad marketplace, the NFL hasn’t exactly cornered the market on broadband video ads. A conversation with Kirk Berridge, the founder and VP/general manager of Sports Ad Marketplace, a San Francisco-based firm that sells online advertising for sports franchises, reveals that the NFL has been slow to run broadband video ads because team websites haven’t been video enabled.
Players may run for touchdowns in Sunday’s game, but it’s been a “crawl, walk” process launching broadband video ads on sports websites, Berridge said, although he’s working hard to improve the situation so NFL and other sports franchises can get in the game.
iSPOT: Can you provide background on your company?
Berridge: We were founded in 2004 in San Francisco by yours truly. I’m a former team guy. I used to work for the San Francisco 49ers and the San Jose Sharks. The Sharks were the first team in all sports to launch a commercial website. I sold the first online ad deal on the site in 1997. I created the company for two reasons: to help teams properly penetrate the online ad market and to enable online advertisers to place campaigns on team sites.
iSPOT: Have you been selling broadband video ads?
Berridge: This season we did it with a small handful of team sites, including the Green Bay Packers, the Oakland Raiders and the Baltimore Ravens, to name a few.
iSPOT: What kind of advertisers are placing the ads?
Berridge: We’ve had EA Sports for their NFL Head Coach title, but it’s been a crawl, walk around process using NFL team websites. They have their own video players and proprietary video content, but until this year none were pre-roll enabled, so we’ve helped them with the process. We expect as the off season rolls around we’ll get more teams with their video players able to take pre-roll ads.
iSPOT: How did you help with the process?
Berridge: We retained a video expert. The challenge with the NFL is they were on as many as three or four different video platforms, some were Flash based, some were Windows based and some were Real Player. Given that there were different platforms, we had to do customized work for different teams to enable them to take pre-roll ads.
iSPOT: How about the other sports?
Berridge: Football is further along. The NBA just this year has the initiative around teams pushing proprietary video content on a regional basis so they’re probably a little bit away from being pre-roll enabled. They might be now, but the reality is they just started pushing video content on a team basis. NFL teams have in-house TV production capabilities and can produce Internet specific content or repurposed content. Colleges have never done the revenue model; they’ve usually done the subscription model so they’re behind.
iSPOT: What kind of ad packages do you offer?
Berridge: Advertisers can buy run of marketplace, we can take paid campaigns to all teams in all sports and leagues and they have the option to accept or refuse each ad deal based on the CPM rate and the campaign creative. We also offer channel specific packages, so they can target the NFL and run campaigns on team sites that would accept campaigns. Or they can buy site specific ads that are targeted to regions, so they can take it to certain sites.
iSPOT: Which one is the most popular?
Berridge: Channel specific, because a brand might align better with a specific sport.
iSPOT: What’s the future for broadband advertising on sports properties?
Berridge: It will be driven by teams. They have to have good video content on their sites, and once they have that, they need to make their video player pre or mid-roll enabled. Once that’s in place, there’s nothing like sports on the Internet.
iSPOT: Do you work with agencies?
Berridge: We have a direct ad sales force that calls on major agencies across the country. We’re working with all the big ones.
iSPOT: How do you work with the franchises?
Berridge: We serve as a consultant, making sure they have the right size IAB ad units and are pre-roll video enabled. Once that’s in place, we start bringing in paid ad deals for them to accept on a case by case basis. We empower them to accept or refuse each deal based on three things: the advertiser, the CPM rate and the campaign creative. We empower publishers to maintain control and generate revenue based on ads they accept. We handle planning, trafficking, ad serving, reporting and billing.
iSPOT: How do you compare how broadband video advertising is used in sports to other industries?
Berridge: There’s a high demand for video, but the team market is just starting to evolve. They’re just starting to do the things necessary to penetrate the market and we’re assisting them in those efforts. It’s crawl, walk, run because teams weren’t penetrating the market and didn’t have the expertise, the right size ad units and weren’t video enabled. But there’s nothing like sports content on the Internet. I’ve seen the numbers from Comscore that sports accounts for 37 percent of all Internet traffic, so we need to get the teams in the position to be successful.
iSPOT: Who’s responsible for the teams?
Berridge: Usually it’s people in revenue-generating positions, marketing or sponsorship people.
iSPOT: How are you positioned to help teams move ahead?
Berridge: We have a bunch of former team guys on our staff and we have sales offices in New York, Chicago and San Francisco.
iSPOT: Do you have any Super Bowl ads running?
Berridge: We have a campaign running on Colts.com for AT&T broadband, called See How They Live, starring Adam Venetieri, the Colts kicker. It has a dedicated microsite with video ads. We’ve also had paid ads on Chicagobears.com, so we’ve been working with both Super Bowl teams.