• by David Goetzl  @dgoetzl, May 13, 2011

With the live streams of its networks now on multiple devices, ESPN is taking an intriguing strategy with ad sales that other networks could learn from. At Tuesday's upfront event, ESPN is expected to announce that it will begin selling ads in the simulcasts of ESPN, ESPN2 and ESPNU, which are accessible on laptops, iPads and smartphones.

Even though the programming is the same as TV, the ads will be different. So, in theory, when a Geico spot airs on the TV during "SportsCenter," an ad for State Farm could be running simultaneously on an iPad.

ESPN has been leaving the ad space blank in the live streams that launched online last year and more recently via a "WatchESPN" app on mobile devices.

ESPN could have gone with a true simulcast - the same programming and ads across all devices. That's the "TV Everywhere" model that networks are dabbling with.

Yet, "TV Everywhere" has been slowed for multiple reasons, including networks' concerns about getting ratings credit for the off-air viewing. (If "Gossip Girl" viewers are watching in dorm rooms on a laptop, the CW wants to make sure it is compensated properly for the ads they watch.)

But that problem appears to be solved. A Nielsen system now aggregates viewing taking place both on the TV and elsewhere -- and provides a single rating. (On-demand viewing is included.)

That's where ESPN is taking a different tack. It could have joined the single-rating movement. By running the same ads on TV and off, it would have a combined rating to sell to advertisers.

Instead, it believes not all viewers are the same. The value varies based on which device is used.

Those with the most souped-up iPad could have a different profile - tech-savvy, more upscale, etc. -- than the guy at home in the living room with an aging Panasonic. Also, the viewing experience can be different based on device.

So, ESPN's aim is to turn the viewing on iPads and smartphones into a distinct ad platform -- a separate marketing opportunity that can benefit both the network and advertisers. It's a smart approach and other networks should take heed. Perhaps they should reevaluate their "TV Everywhere" approach with a longer-term view.

At ESPN, advertisers may welcome the chance to reach just viewers using an Android device, killer laptop or other option. The targeting might be particularly attractive to marketers in certain categories - movies, video games, etc. It might also cut out some waste that comes with a conventional TV buy.

Also, there's an opportunity to turn ads on an iPad or smartphone into a more engaging experience. The ads can be surrounded by all kinds of bells and whistles and special enticements.

"Ultimately, we want the viewer to engage with the brand and that's something you can't really do with a traditional 30-second spot," said MediaVest vice president Francois Lee. He added that online viewers have an "expectation of interactivity."

ESPN declined comment on new ad models.

At least for now, the number of ESPN viewers on the new devices is limited. Only subscribers of Time Warner Cable, Bright House Networks and Verizon FiOS who pay to receive ESPN at home can gain the free access to the simulcasts.

The "WatchESPN" app is available on Apple and Android smartphones and tablets. ("Monday Night Football" is not available on all devices due to a rights issue.)

ESPN may not even be in the first inning. As it cuts deals making the simulcasts more widely available, viewership should increase. So will ad dollars. Perhaps more so with its tailored approach.