In Ad Tech Wars, Disney Counts On YODA For An Edge
Launched early last year with Hulu and Disney Plus, Disney ad servers were added in December.
“If we didn't have this ad server and the foresight to deliver this platform, it would be very difficult to meet the needs of Disney Plus with a commercial launch,” Helfand said.
The platform is designed to analyze where Disney is doing its advertising business in terms of better targeting audiences with prime time data and increasing purchases using programmatic technologies.
An increasing percentage of Disney's advertising business is done through programmatic or self-service platforms, Helfand said. "The new launch is more programmatic," he said.
YODA is designed to put direct buyers and programmatic buyers on an equal footing when orders are received and inventory needs to be allocated to their campaigns. YODA uses machine learning and data science to optimize customer performance and maximize Disney profits.
Disney said it plans to run 50% of its eligible ads on automated channels. It's part programmatic and part customer self-service buying through Disney Ads Manager.
"We currently work with over 5,000 advertisers and about a third of them work with us programmatically. You're talking about thousands of advertisers who may have the right ad for a given placement at a given time," said Helfand, looking at the entire ecosystem, educating our advertising partners as much as possible about their privacy-friendly advertising space".
Disney Ads Manager gives small advertisers access to ads on Disney content, Helfand said. Adding smaller advertisers to the mix helps drive more revenue, but it also means a greater variety of ads served, which improves the viewer experience, he said.
The advertising platforms are separate from those delivering content on Disney's digital and streaming platforms, but work closely together and report to Disney Entertainment and ESPN director Aaron LaBerge.
Coordination is key to creating the best viewer experience, while ads are integrated to tell the story. Data improves the experience by making in-app ads more relevant to viewers. The technology also allows for formats like interstitials (which appear when a viewer interrupts a show) and bulk ads (which promise that the next episode of a show will be commercial-free thanks to a sponsor) and is less frustrating.
If a more traditional ad placement is needed, Disney limits the duration to 90 seconds. The clock on Hulu shows how much time is left before the content resumes. For some consumers, the clock moved too slowly, but Disney's tests showed it set expectations for viewers.
“We've found better results [with a watch] because ultimately you're looking to maximize engagement with the platform and also provide a higher ROI for advertisers,” Helfand said. .
Having its own platform allows Disney to quickly issue new promotional products and distribute them throughout the Disney ecosystem. This platform helps create differentiated products where the streaming experience is enhanced by seamlessly integrating relevant advertising with the content viewers watch.
The ad technology team also works closely with the ad sales team led by Rita Ferro.
"We work a lot together," Helfand said. “What does the market want? What does it need? They're going to go out and offer the flagship customer a new product that we want to try.
The tests are designed to determine the effectiveness of corporate formats for advertisers and their impact on consumer engagement.
The format is also expected to help Disney's bottom line. "The benefits come in many ways. One is to increase revenue. The other is operational efficiency," Helfand said. “We don't need as many people to manage campaigns manually. They can generate more value for our advertisers if they don't have to do so much. So you have to look to increase revenue and reduce costs. Sometimes they cater for both.”
Disney recently announced that an ad-supported version of Disney Plus, powered by Disney Ad Server, will launch in Europe this year.
"Ultimately, our goal. This means that every brand will be supported by a unified global advertising platform and Disney ad servers," said Helfand.
Having your own technology benefits advertisers because they don't have to find and pay for other ad technology vendors.
“We have a large ecosystem of partners and it is very important to make our platform interoperable with these partners. But coming directly to Disney makes it more efficient,” Helfand said. “The other thing I would say is that we can optimize that information and reduce waste faster than you can produce.”
The technology should also give Disney Plus an edge over Netflix, which also launched an ad-supported service last year. “To deliver the best experience to your audience, it's imperative that your ad technology is deeply integrated into your service,” she says. "I think we have a significant lead not just on Netflix, but, you know, a lot of our competitors."
During a Disney presentation last month, Ferro praised the company's technology and data capabilities.
"Every time we set precedents like this, customers are curious about new products and features. The ability to implement new formats, whether it's metrics, currencies or scheduling and self-service, is therefore essential."
Helfand said he sees Disney competing with large native digital companies like Google, Facebook and Amazon, which are growing by using audience data to drive their advertising business.
“We need to make sure we have the best audience-based advertising capabilities on the market,” he said. "If you mix that with Disney's unique content, we're all going to be competitive."
