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Google announce strategic partnership with Disney

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A couple of weeks ago, Google announced a partnership with Disney which sees them consolidate all their digital inventory onto the Google Ads Platform. In a nutshell, this means that Google will now deliver all digital advertising across all of Disney’s brands and properties, including Disney, ABC, ESPN (ESPN+), Marvel, Pixar and Star Wars.

All Response Media viewpoint
What I find most interesting here is the fact that Disney currently owns 30% of streaming service Hulu, “a leading premium streaming service that offers instant access to live and on-demand channels, original series and films, and a premium library of TV and movies to more than 20 million subscribers in the US” (Source: hulu.com). This will increase to 60% when the Fox merger closes.

Therefore, with this strategic partnership Google now have:

  1. Exclusive access to more premium video inventory
  2. The ability to connect this to advertisers through the Google Ads Platform
  3. An indirect link to one of the biggest streaming distribution channels in Hulu

It will come as no surprise that viewing hours of Internet-delivered video across mobile, connected TVs and desktop screens (worldwide) grew by 114% in the first quarter of 2018, compared with the same period last year. Despite the ‘explosive’ growth, the majority of streaming services don’t support advertising. Hulu however does, and has 20m subscribers in the US. So, does this new strategic partnership and an indirect link to Hulu mean that 2019 is the year that Google starts driving ‘over the top’ (OTT) advertising forward? We will be keeping a close eye on how this develops and leveraging our close agency relationship with Google to ensure we are quick to jump on any early testing opportunities.

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