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Everything You Need to Know in 50 Words or Less
Disney has signed a deal with Trade Desk, allowing brands to target automated ads across Disney’s different streaming properties. These properties include Freeform, ESPN, National Geographic, Hulu, ESPN+, ABC, and FX.
Tell Me More
The deal with Trade Desk is a significant development because in the past portfolios like Hulu were kept separate by Disney. With the ability to access these different portfolios, advertisers can programmatically target audiences. In return, they’ll be able to gain a better return on investment. This deal will likely include the launch of Disney’s ad-supported tier for their service Disney+.
The Trade Desk is a service that works in advertising automation. They work with online publishers and match them with brands. Doing this will ensure that Disney can move their advertising fully to automation.
In the past Disney has stated that they wanted to automate 50% of their ads by 2026, and as of last year, Disney had 40% automated ads.
Rita Ferro, the president of Disney Advertising Sales and Partnerships, talked about the bold vision supported by positive results and crafted by Disney Advertising. The team expressed their excitement for the opportunity to continue delivering greater automation and addressability for their customers via the deal with The Trade Desk.
Ferro details the years Disney Advertising has spent creating and improving its data and technology strategy to allow advertisers more precise and engaging communication with their audiences. This opportunity with The Trade Desk means empowerment of the Disney portfolio, validated by insights from their audience, automatically and accessibly.
Content-Focused vs. Audience-First
In the past, advertisers have been content focused. Content-focused ads mean presenting ads based on the programming the viewers are watching. For instance, traditional children’s television shows will include a variety of ads for toys. Advertisers assume the children watching will encourage their parents to purchase these toys.
It’s a good approach. The trouble is that it’s not always children watching children’s television shows. Other demographics are at play, and it could be that parents or young adults are watching. So when the ads primarily target children, you miss this entire demographic.
Audience-first means that these companies collect information on who’s watching these television shows. By doing this, they can reach as many people as possible. For example, Disney’s deal with The Trade Desk is an audience-first advertising deal.
Reaching the Target
Companies like The Trade Desk can better collate data now that nearly everyone is using smart TVs and streaming services. Disney has a large bank of audience information across their portfolios, making this a decisive move in the advertising industry. Companies working with The Trade Desk will be able to concentrate on audience-first advertising and target the customers that they’re hoping to reach.
Final Thoughts
Disney isn’t the only one looking to the future. Companies like Netflix, Google, and Amazon plan on inking similar deals. Netflix is reportedly in talks with Roku to discuss a merger that would give them access to a well-tested video adtech stack. With all of these changes, it’s clear that advertising is becoming much more audience based with the help of complex technology.
Source: The Trade Desk
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