Variety: Warner Bros. Discovery Considering Finalists for Ad-Sales Leadership Role

Story from Variety:

Warner Bros. Discovery in October did something very ambitious, announcing that the company’s current U.S. ad-sales chief, Jon Steinlauf would leave — just as soon as the company found his successor.

Two months later, Steinlauf is still leading Warner’s efforts to win money from Madison Avenue. Meanwhile, Warner initially reached out to prominent sales executives at direct rivals to see if they might be interested in the role, according to four people familiar with discussions. Recruiters representing Warner approached senior sales executives from at least three of the company’s direct rivals, according to these people, but the efforts were turned down each time.

Warner Bros. Discovery has evaluated “dozens” of potential candidates, according to a person familiar with the process, which is being managed by Bruce Campbell, the company’s chief revenue and strategy officer, with some insight being offered by Steinlauf. Warner has narrowed its consideration set to a small group of finalists, this person says, and feels no pressure to rush its efforts.

Warner Bros. Discovery declined to make executives available for comment.

In years past, selling ads for Warner TV networks such as CNN, TNT and Food Network would have represented one of the most attractive jobs in U.S. media, one that would come with access to sports events such as the NCAA men’s basketball championship and proximity to celebrities including Anderson Cooper, Conan O’Brien and Charles Barkley.

In 2024, however, the Warner portfolio has seen some of its value eroded. Many of the company’s top cable networks suffer from continuing ratings declines. Warner Bros. Discovery will at the start of the next NBA season lose the U.S TV rights to the league’s games, which have buoyed the cable network TNT and drawn millions of dollars in ad support. Warner Bros. Discovery earlier this year took a $9.1 billion write-down on the value of its cable portfolio, which also includes TBS, HGTV and Discovery Channel.

The Warner ad-sales job comes with other challenges, too. David Zaslav, the company’s CEO, has become known in recent years for inserting himself into negotiations between the company and some of the big media agencies that represent billions of dollars in ad spend from blue-chip clients. Zaslav, who has in recent years has tried to push advertisers to raise their advertising commitments, has in some cases alienated clients with deal terms he sought, and undermined his sales team’s work. None of the candidates being considered has expressed any concerns about how Warner Bros. Discovery manages its ad-sales efforts, according to the person familiar with the company’s process, and Campbell is known to have direct supervision of sales efforts.

Warner Bros. Discovery secured $5.69 billion in TV-network advertising in the first nine months of 2024, according to the company’s earnings reports — representing a dip of about 10% from the same time period in 2023, when it secured around $6.39 billion.

Sales jobs for major media companies have long come with high pressures and big expectations. In recent years, however, those concerns have magnified.

The corporations involved need Madison Avenue support to thrive, and the rise of streaming giants like Amazon, Netflix and YouTube has diverted millions of dollars that would in the past have gone directly to traditional players such as Warner, Paramount Global and Walt Disney, among others. As a result, media conglomerates are more prone to change strategies quickly in a bid to chase advertisers. In recent months, Fox, Nexstar, Warner, Paramount, NBCUniversal and Netflix have all parted ways or announced separations with some of their most experienced ad-sales executives — and in some cases unveiled new structures in a bid to streamline relationships with key media buyers and clients. Netflix raised eyebrows in the midst of the industry’s “upfront” sales season by ousting Peter Naylor, a respected veteran of NBC, Hulu and Snapchat, spurring speculation that the streaming giant wasn’t meeting its goals for the annual sales session. The company has since hired a new executive, Nicolle Pangis, to take on his duties.

There is some speculation that Warner might consider internal candidates as well. One executive said to have expressed interest in the job is Ryan Gould, who oversees digital ad sales. Gould has oversight of the one of the hottest areas in the company’s portfolio — ad sales on the Max streaming hub. Advertisers are getting placement in content there that has previously been kept away from them, including popular HBO series such as “Game of Thrones” or “Girls.” Sponsors can also experiment with new technologies that spur streaming subscribers to shop for products like the ones seen in their favorite programs and series.

Another Warner sales executive could be poised to get new duties if the company chooses to rely on internal candidates. Robert Voltaggio, an executive vice president, doesn’t have a typical sales background. He has largely focused on crucial back-of-the-house operations, such as ad pricing and implementation of sales strategies. But he has developed credibility over time with Warner’s top executives, according to people familiar with the matter, and has often demonstrated an ability to speak candidly with Zaslav, the CEO. That could make life easier for whoever is awarded the top sales role.