A Disney-Fox deal is not just about Netflix – it also has major ad sales ramifications

the bold type freeform
Bold Type” a series on Freeform

Freeform/John Medland

  • While Disney seems to want Fox primarily for its
    content assets as part of its budding war with Netflix, don’t
    forget about ad sales.
  • The combined media entity will immediately boast of a
    broader array of TV networks to sell to marketers, allowing it
    to command more clout in the market and deliver elaborate
    cross-network packages.
  • Fox’s ad team could also help nudge Disney ahead in
    data-driven ad sales, where it’s fallen behind, say ad

Investors, commentators and stakeholders alike are watching
closely as Disney closes in on a deal to acquire a collection of
valuable assets from 21st Century Fox — a deal that
alters the existing media landscape as we know it.

It helps Disney battle accelerated cord-cutting, gives it an even

bigger repository of content
than it already has and helps
prepare it to take on Silicon Valley giants including Facebook,
Google, Amazon and Apple.

But less examined thus far is the fact that the merger will make
Disney all the more attractive in the eyes of media buyers
purchasing ads on behalf of marketers.

Disney will not only be snapping up Fox’s film and television
studio, but also cable channels including National Geographic and
FX worth $8.7 billion. That represents a massive boost to
Disney’s TV advertising portfolio, whose cable channel assets
have been so far limited to Freeform and the very niche (and
mostly ad free) Disney Channel.

“From a cable point of view, Fox brings in rich assets in the
form of FX and National Geographic, an area in which Disney has
so far been limited,” one TV ad buyer told Business Insider. “It
sounds like a very synergistic compilation of companies and
broadens its appeal to marketers.”

Jason Maltby, president and co-executive director of national
broadcast at Mindshare agreed, saying that with Fox, Disney has a
much broader range of networks to sell to giant advertisers.
“From a marketplace standpoint, fundamentally what this does is
that it allows Disney to become a bigger player in the cable
arena,” he said.

The combined entity would also be able to provide advertisers
more opportunities to purchase custom, complex ad packages
“across the spectrum” that include a mix of TV and digital ads,
said Jim Fosina, founder and CEO of Fosina Marketing Group. ”

It also helps that the Disney-ABC TV Group reorganized earlier
this year, laying the precedent for what comes ahead. The
restructuring put ad sales for its entire portfolio, which
includes ABC, Disney Channel, Freeform and Radio Disney,
under sales chief Rita Ferro.
Buyers expect Fox’s assets to
be incorporated under Ferro as well.

“A consolidated Disney where they go to one place for all their
needs is far more attractive to marketers,” added a TV ad buyer.
“A broader portfolio and reduced competition also allows Disney
to attempt to garner a higher premium.”

In other words, Disney can promise one-stop shopping and will be
one of the few big TV ad players left standing.

Ad buyers have been pushing for such streamlining for years, said
Steven Piluso, head of media and integration at Media Storm. He
recalled having to go through numerous different sales reps and
silos within 21st Century Fox and News Corp, with it being common
“to talk to eight to nine different reps to get a deal done.”
Consolidation is welcome, he said.

A combined arsenal of Walt Disney-Fox assets might also enable
marketers to chalk out larger scale ad programs that potentially
tap into Disney and Fox’s intellectual property and, and its

For example, recently the Nissan Rogue was promoted in
conjunction with “Rogue One: A Star Wars Story” across Disney’s
networks, stations and shows like “Jimmy Kimmel Live” — even
ESPN. Campaigns like that could become bigger, and more

“They have more leverage in the marketplace, more insight into
how budgets are allocated and ultimately, a tighter grip on the
future,” said Mindshare’s Maltby. 

That grip could be strengthened by more data. As a growing number
of advertisers have pushed the TV industry to embrace elements of
digital advertising – in terms of audience targeting using data
and software – Disney has been seen as lagging on that front.

Meanwhile Fox – along Turner and Viacom recently formed a

consortium to launch OpenAP – 
through which advertisers
can mix and match data sets to be used for ad targeting on
multiple TV networks.

The deal could bring Disney into that fold.

“Until this point, Disney could not have played in behavioral
marketing,” said Maltby. “This really gives them the opportunity
to play in that space and go beyond targeting based on gender and
age and do it based on purchase behavior.”



Lire l'article depuis la source


Check Also

North Yorkshire woman, 94, sits in dark in fear of bill

A 94-year-old woman who is in dispute with her electricity provider sits in the dark ...