Disney signs deal to move digital ad business to Google
Disney has agreed to transfer its global digital advertising business to Google in a lucrative deal for the tech giant.
The deal will see Disney move its entire digital video and display business for brands such as Pixar, Marvel and Star Wars to Google's Ad Manager platform.
The agreement builds on an existing relationship between the two companies and marks the end of Disney’s deal with Freewheel, a digital advertising platform owned by Comcast.
“The Walt Disney Company and Google have both been at the forefront of transforming the advertising experience and we’re excited to continue driving the industry forward together,” said Disney chairman Kevin Mayer.
“As Disney Advertising Sales transforms how we engage the marketplace, delivering truly distinctive advertising solutions across our brands and media through a one-stop-shop, this agreement will ignite further innovation, help Disney grow our business and deliver an unequaled combination of quality, reach and value to our clients.”
The move is a victory for Google as advertisers adapt to the shift from traditional TV to streaming across different devices.
Google’s chief business officer Philipp Schindler said: “Together we plan to build an advanced video experience for Disney that will transcend devices, platforms, and living rooms to bring the magic of premium video content into people’s hearts, minds, and screens.”
Schindler said the companies will explore new marketing techniques across video, web and apps.
The deal is expected to earn Google “tens of millions” of dollars a year in revenue, an industry source told the Wall Street Journal.
Disney recently confirmed details of its new streaming service, Disney Plus, which will be rolled out in the US in late 2019.
The company reported a 12 per cent year-on-year rise in revenues for the year to the end of September as it looks to complete its $71.3bn (£55.8bn) takeover of 21st Century Fox.