The Trade Desk: Publisher Programmatic Strategies
Former EVP Digital Ad Sales at Warner Bros Discovery
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The Trade Desk: Publisher Programmatic Strategies(December 11, 2023)
Former EVP Digital Ad Sales at Warner Bros Discovery
The executive has over a decade experience in Connected TV. The executive held senior ad sales roles at Hulu and most recently a WBD, overseeing their digital properties like HBO Max and Discovery+.
Interview Transcript
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Your introduction leads me to a question. You mentioned that programmatic was a significant part of the go-to-market strategy for Discovery+ when it launched. I'm curious as to why you think Netflix and Disney+ were slower in adopting programmatic, especially considering that Netflix announced their intention to use ads over a year ago. How do you view this situation?
For instance, they haven't been very public about the number of ad-supported subscribers they have for Disney+ and how frequently these subscribers are using the platform. The cost difference between ad-free and ad-supported is not significant on Disney+, so it's unclear how many people are actually using the product. Therefore, they haven't felt the need to use programmatic to drive fill and rate.
This is a snippet of the transcript, sign up to read more.
Your introduction leads me to a question. You mentioned that programmatic was a significant part of the go-to-market strategy for Discovery+ when it launched. I'm curious as to why you think Netflix and Disney+ were slower in adopting programmatic, especially considering that Netflix announced their intention to use ads over a year ago. How do you view this situation?
I would venture to bet that Netflix will be more successful than Disney in terms of attracting ad-supported subscribers over time because of the depth of their content and the fact that they're making it harder for consumers to buy the ad-free experience. In the US, Netflix's base plan for a commercial-free experience is now $18.99, but it's $6.99 for ad-supported for all the same content. That's a $12 difference that I think the average American consumer will have to think about.
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Let's take a step back. Can you discuss when Hulu launched its programmatic capabilities, how that process unfolded, and how quickly it became a significant part of their revenue?
Hulu and Roku, to a lesser extent, were the two driving forces behind why CTV programmatic is about price and not about fill. Unlike the display market, which became all about fill and lower price, we took a firm stance that we deserved a premium. This was one of the reasons why it was so successful.
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