How Disney is nearing its goal to automate 75% of ad sales by 2027
Oct 1, 2024
auto_awesome
Jamie Power, senior vice president of addressable sales at Disney, shares insights on how Disney aims to automate 75% of its ad sales by 2027. She highlights the remarkable shift towards programmatic advertising, revealing that over half of streaming dollars are now transacted this way. Power discusses the rapid growth following the introduction of interactive ad formats, with spending skyrocketing eightfold compared to the previous year. The conversation also touches on innovations in ad tech and the integration of sales teams to enhance client interactions.
Disney aims to automate 75% of its advertising sales by 2027, with over half of its streaming dollars already transacted programmatically.
The podcast highlights the urgent need for publishers to navigate AI partnerships ethically amid a shifting digital landscape and declining revenue.
Deep dives
Insights from the Publishing Summit
The recent publishing summit provided crucial insights into the state of the industry, particularly regarding programmatic advertising. During discussions focused on the upfront market, the anxiety among publishers was palpable, as they grappled with how to negotiate lucrative AI deals in a time of declining revenue. Conversations revealed that while many publishers fear missing out on profitable partnerships, they also worry about existing AI firms already capitalizing on exclusive agreements. The sentiment was one of urgency, as publishers seek unique content to maintain relevance and revenue amidst shifting digital landscapes.
Understanding AI's Role in Advertising
The podcast highlighted the dual nature of AI's impact on advertising, showcasing both opportunities and challenges. Mark Zuckerberg's comments on content ownership raised concerns about how publishers should engage with AI companies that could exploit their material without fair compensation. This environment of uncertainty has created a pressing need for publishers to reassess their dealings, especially with the FTC's crackdowns on misleading AI practices. As traditional media contends with unprecedented pressures, finding a balance between AI technologies and ethical content use remains a critical conversation.
The Future of Traditional TV is Uncertain
Traditional television is experiencing significant upheaval, characterized by layoffs and declining subscriber bases among major networks. Data revealed that the combined subscriber count of services like Direct TV and Dish has fallen below previous levels, indicating a downward spiral for linear TV. Moreover, significant write-offs from major companies such as Warner Brothers and Paramount further emphasize the fragility of the traditional TV model. The transition toward streaming services is accelerating, and questions loom about the sustainability of the linear TV subscriber model moving forward.
Programmatic Advertising Transformations
The evolving landscape of programmatic advertising is prominently transforming how ad purchases are made, indicating that advertisers are increasingly favoring this approach. This year, more than half of Disney's addressable dollars were spent programmatically, showcasing a marked shift in advertiser preferences. The podcast emphasized the importance of flexibility, with Disney allowing clients to transact in a way that suits their needs, integrating new interactive ad formats that saw exponential increases in spending. As the organization strives to automate 75% of its transactions by 2027, the podcast detailed the essential role of internal training and adaptability within sales teams to facilitate effective programmatic operations.
The Walt Disney Company plans to automate 75% of its advertising business by 2027. And the company took a further step toward that end in this year’s annual TV and streaming advertising upfront market.
“Of the streaming dollars that came in, of those billions of dollars, more than half of them are transacted programmatically,” Disney’s svp of addressable sales Jamie Power said on stage during the Digiday Publishing Summit in a session that served as a live recording for the Digiday Podcast.
A catalyst to the growth of Disney’s automation efforts this year was the parity that the company has created in making the breadth of its streaming inventory available for purchase programmatically. That includes, more recently, its interactive ad formats.
“Once we finally were able to enable them, within six weeks the spend was eight times the spend than the year before,” Power said.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode