Disney's 2023 Tech & Data Showcase: The Infrastructure Comes Together

The Big Message: Disney is well on the way to implementing a technology platform that's interoperable with all the company's linear broadcast/cable and megacontent services. Elements introduced over the last year, from audience graphs that monitor more than 1,800 consumer demographics and habits, to "clean rooms" that give sponsors a privacy-centric data resource to work out collaborations, are being embraced by the ad community, and new features introduced over the coming months will accelerate the platform's full implementation. "Making significant advancement on all things data and programmatic remains our highest priority," declared Disney Advertising Sales President Rita Ferro (pictured at top, center, in red). "What's the result? Better opportunities for you. We're committed to supporting your business goals."

Host: Rebecca Jarvis, chief business/economic correspondent at ABC News, speaking fromGood Morning America's Times Square studio. After her opening remarks, Jarvis turned the proceedings over to Ferro and some of her executive colleagues, then moderated a closing panel discussion with Disney Advertising Sales Executive Vice Presidents Jeremy Helfand (advertising platforms), Lisa Valentino (client solutions/addressable enablement) and Senior Vice President Dana McGraw (audience modeling/data sciences). (Jarvis, Helfand, Valentino and McGraw are pictured below, left to right).

What Worked: The overall hour-long format, with individual executives explaining various ad tech innovations and results in an understandable fashion, accompanied by colorful graphics. Nice touch to have Ferro and Disney Media & Entertainment Distribution Chief Technology Officer Aaron LaBerge deliver their segments from SoFi Stadium in Los Angeles, site of this month's college football national championship game, presented live on ESPN.

What Also Worked: Ferro offering additional context on the presentation and Disney's overall Upfront strategy two days earlier via a 20-minute LinkedIn fireside chat. Other TV programmers -- especially those not planning to do an Upfront or NewFront event -- should consider adopting this social media-minded access to advertisers.

What Didn't Work: Not addressing several key questions about Disney+'s ad-supported format. Three of them: How are participating advertisers making out so far? When will Disney+ pull the trigger on generating interactive ad options meeting or exceeding those in place at sister megacontent service Hulu (pause ads/binge ads/viewers choosing the ads they want to see, etc.)? And with the number of smart TV sets/devices giving consumers the ability to order products and services using their voice or remote at critical mass, when will Disney+ launch commerce-generating messages?

Data Points: By 2024, at least half of Disney's TV advertising revenue will be generated by addressable and programmatic transactions. Going into this year, 79 percent of Disney-generated content is watched through smart TV sets and devices, and company executives forecast that in 2025, half of all TV viewing will be through smart TV products. More than 70 advertisers are now regular users of the company's clean rooms, covering every major product category. Also, more than 500 local advertising agencies across the U.S. are using Disney's Ad Manager software in making commercial time decisions.

News: Disney+ is the latest programming venture to connect with its parent company's ad server infrastructure, opening the process of introducing the ability to handle programmatic ad buys later in 2023. In a separate development, Walt Disney will start using Entertainment Data Oracle (EDO), a process that tracks audience engagement of megacontent and other smart TV-distributed services co-founded by actor/filmmaker Edward Norton. Hulu will be the first of Disney's megacontent services to be using EDO on a full-time basis, with Disney+ and ESPN+ to follow in the months ahead. Over at ESPN's Bristol, Connecticut, campus, a virtual studio is now in operation where the backdrop can be modified to any setting advertisers desire.

Parting Words: "We're talking about a very dynamic, interesting and ever-changing marketplace. It's all about scaling the framework in technology that we're building." -- Rita Ferro, during her LinkedIn fireside chat

"I'm here for entirely wonky, data service measurement reasons. We're able to measure real purchase interest. We're on the next seismic shift in advertising. More great stories are going to get created as a function of it." -- Edward Norton, explaining EDO's new relationship with Walt Disney

"Buy once; deliver everywhere. That vision is becoming more reality every day." -- Disney Advertising Executive Vice President Jeremy Helfand

"This (giant ad server infrastructure) is core to the future of our company." -- Aaron LaBerge, Disney Media & Entertainment Distribution Chief Technology Officer

Photos: ABC/Lou Rocco

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