Marketing
09 February 2023
Disney, LiveRamp partner to provide first-party tools for streaming ads
LiveRamp’s people-based identifier will integrate with Disney's Audience Graph.
Photo by PAN XIAOZHEN on Unsplash
LiveRamp’s people-based identifier will integrate with Disney's Audience Graph.
Disney and LiveRamp announced a new integration that will primarily serve advertisers who are buying inventory on Disney streaming services.
The news: A partnership between Disney Advertising and data collaboration platform LiveRamp will provide advertisers with more ways to reach audiences through CTV, the companies said. It creates a way for marketers to harness first-party data as they seek to reach users on Disney’s streaming platforms.
How does it work? The integration will create interoperability between Disney and LiveRamp in the following ways:
RampID, which is LiveRamp’s people-based identifier, will integrated with Disney’s Audience Graph. RampID helps companies to connect across offline and online first-party data. It’s designed to allow brands to reach consumers wherever they are in a buying journey. Brands can now use this to personalize experiences on Disney streaming services, the companies said.
In turn, buyers will be able to access premium CTV inventory through Disney+ when using LiveRamp’s Authenticated Traffic Solution (ATS). As advertisers are seeking to reach the right customers, ATS helps publishers match consented user data with a RampID. The enabler is first-party logins, rather than third-party identifiers.
Key quote from Disney SVP of Addressable Sales Jamie Power: “With marketers seeking solutions that leverage first-party data versus pixels and cookies, Disney Advertising continues to architect solutions that put choice and control back in the hands of buyers. We’re excited to expand the aperture of interoperability through our new integration with Experian and LiveRamp, which will give advertisers increased reach and optimized frequency across Disney inventory while powering greater choice and control for buyers.”
Where advertising is heading
The partnership highlights two trends shaping the changing digital advertising landscape:
CTV, or Connected TV, describes advertising that is designed for streaming services. Disney is a key player in streaming through its service Disney+. The service has grown to reach 161.8 million subscribers. With an ad-supported tier that launched in November, Disney is introducing more opportunities for brands to reach consumers. CTV advertising holds the promise of combining the ability to reach the captive audience of TV with the targeting and measurement capabilities of the internet. To make advertising more effective, streaming platforms will increasingly add capabilities that allow advertisers to more effectively reach the right consumers. This integration offers one such example of a building block moving into place.
First-party data: For years, digital advertising was powered by third-party tools such as the pixels and cookies referenced by Power that helped brands understand consumer behavior and intent based on their movement across websites. But changes coming to digital advertising as a result of Apple’s App Tracking Transparency and the coming end of third-party cookies are putting a priority on first-party data, which is collected directly from consumers through a purchase or loyalty program. Typically, retailers possess this data from checkout and shopping activity, but the changes being put in place create barriers to sharing it between web properties. Streaming services like Disney may not have ready access to first-party data, as they are currently a medium for viewing rather than buying. Integrations with services like LiveRamp can help streaming services access that first-party data. This integration underscores how services like Disney are building out these capabilities through partnerships.
Further reading: LiveRamp also recently partnered with Pinterest to provide access to data clean rooms, which are also gaining importance in the privacy-centric advertising market.
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.