Disney+ has intensified its efforts to provide advertisers with more comprehensive and adaptable ways to reach audiences at scale, as the ad-supported tier nears its one-year anniversary. With its first-party audience graph and programmatic buying via private marketplace (PMP), the Disney+ ad-supported tier has introduced audience targeting. In addition, it now offers measurement services for identity, efficacy, verification, attribution, and approved creative ad formats.
Rising Disney+ ad-supported tier and programmatic capabilities
Of new subscribers, 50% select the ad tier. Furthermore, there was a 35% increase in service engagement from March to September 2023. The capacity to provide impact for advertisers grew along with the size of the Disney+ audience that is ad-supported. In order to provide the best possible customer experience, this was accomplished while maintaining a complementary ad load in line with viewing behavior. Disney’s position as an industry leader has been further cemented by solutions for tracking the effectiveness of campaigns. This is in order to fulfill and optimize advertisers’ performance goals.
Advertising capabilities are available on Disney+
Advanced Audience Targeting
With the help of Disney’s acclaimed, in-house first-party Audience Graph, marketers can now target audiences more precisely for the first time across demo (age and gender); geography (State/Designated Market Area); and Audience Segments. Disney’s audience graph, which features 110 million households, 235 million unique viewers, and more than 2,000 interest- and behavior-based audience segments, will now allow advertisers to use first-party data.
Disney is extending its programmatic offerings to encompass biddable transactions, accessible via exclusive auctions or private marketplaces. Advertisers can unlock Disney’s premium content at scale with greater choice and control than ever before. This is thanks to its availability across 30 DSPs that represent large, midmarket, and local platforms.
Diversified Ad Formats
Disney+ is now accepting a wider range of creative lengths (midrolls and:15s to:90s) in addition to choosing content sponsorships, which are now available for the 2023 holiday season. This builds on its history of creating market-defining, consumer-first formats.
Enhanced Measurement and Attribution
Disney+ has kept developing new tools to help marketers reach a wider audience while guaranteeing efficacy through attribution and measurement. More campaign measurement options than ever before will be available to advertisers through it, all of which will highlight the benefits of running ads on Disney+. InnovidXP provides web and app conversion measurement, Kantar measures brand lift. Furthermore, Data Plus Math and iSpot.tv provide reach and frequency insights, and the platform, which previously offered measurement through Samba TV and VideoAmp, now offers the ability to measure the impact of ads on foot traffic through Cuebiq and Foursquare, and Kantar measures brand lift.
Disney+’s growing audience means more chances for advertisers to enhance their connection with the service as the platform continues to grow in size. Disney Advertising is still dedicated to bringing innovations and solutions to its brand partners to help them achieve their goals.
Here’s what they said
Rita Ferro, president, Global Advertising, Disney said,
Consistent with Disney’s strategic approach, we spent the last 10 months testing, learning and listening to our consumers and clients. That’s how we continue to create viewer-first experiences while simultaneously introducing new capabilities, functionality and formats. We’re seeing increased engagement and time spent, and now providing greater accountability for marketers through robust measurement, proving that premium content matters.
Netflix is admitting that it still has ways to go in order to scale the necessary advertising reach and subscriber size with its ad-supported model. It claims that by taking a customer-focused approach and providing advanced features to advertisers, they may ultimately surpass competitor streaming services in the advertising market. Netflix suggests that its ad-supported tier serves as a backup plan for users who express dissatisfaction with price increases. It seems that the streaming behemoth believes its competitors are doing advertising incorrectly. Some of its streaming competitors haven’t yet done as well in creating an advertisement-friendly environment.
Netflix wants to educate consumers about the ad-supported tier
According to Netflix, part of its mission is to inform customers about what to expect from their Netflix advertisements. This allows people to consider what, given their unique tastes, would be the best decision for them. The secret is to use the data collected as more people use the ad-supported tier to build models and capabilities that minimize repetition and intrusiveness while delivering relevant ads and a tailored experience.
Insights on new subscribers to ad-supported plans
Some reports state that new customers to the ad-supported plans see four minutes or less of advertising every hour, whilst those who cancel and re-up only view 60 seconds or less. This is before the amount of ad time is progressively increased once more. Resulting in rumors that a sophisticated method of desensitizing ad-verse consumers is part of Netflix’s educational process. However, since last May, six months after the plan’s introduction, when the business claimed to have drawn close to 5 million sign-ups worldwide, Netflix has not made available the precise number of with-ad members. According to reports from July, out of over 75 million Netflix members in the United States, 1.5 million of them were using the advertising plan.
Netflix’s Ad Formats Expansion
Netflix announced the start of title sponsorships for seasons, series, and new domestic live sports events in addition to the growth of its ad formats. It includes the addition of a binge format, as part of its effort to realize that potential. Apart from introducing ad buys for its top 10 content selection, Netflix is collaborating with Microsoft, an ad tech partner, to provide other programmatic ways to access its ad inventory. Future expanded targeting capabilities should be available soon, as improving ad relevance is the first stage.
Challenges Netflix Might Face
Customers who use streaming services aren’t used to any kind of advertisement environment. In the past, cord-cutters sought to save money by forgoing the pricey cable bundle. In the process, they improved their viewing experience by being able to watch content whenever they wanted, without interruptions. Priorities are ranked highest for measurement. Therefore, Netflix is working to give comparable measurement capabilities to service a large list of partners across other nations in addition to launching a measurement relationship with Nielsen in the U.S.
A chance for Netflix
Just one year into their agreement, Netflix started a restructuring of its advertising partnership with Microsoft in July. In order to revitalize the developing area of its business, the streaming juggernaut decided to lower its ad pricing. Netflix leaders within the firm voiced their displeasure with Microsoft’s ad inventory and sales performance. Microsoft was forced to make the maximum amount stipulated in the agreement reached more than a year ago. This was a result of weak sales and a smaller-than-expected ad market. Microsoft had been chosen by Netflix as a partner at the beginning of its advertising business.