Connected TV (CTV) ad spend is on the rise, but broadcasters are eager to see it accelerate. Warner Bros. Discovery International is taking steps to boost CTV and digital ad spend with the introduction of a first-party data platform called AIM. This platform aims to provide advertisers with more relevancy in streaming environments by allowing them to target specific audience segments based on first-party data gathered across Warner Bros.‘ media portfolio.
The AIM platform gathers data from over 120 different data points, including viewing and web behavior across streaming, app, mobile, and web content. This data allows Warner Bros. to create highly targeted audience segments, such as vegan-specific segments based on user behavior from The Food Network content. By offering these audience segments through Connect, a marketplace platform built with adtech vendor Magnite, Warner Bros. aims to provide advertisers with more precise targeting options beyond traditional contextual advertising.
The rollout of AIM has already seen success, with 50% of campaigns on discovery+ in the U.K. and Ireland utilizing the platform since June. Major brands like Adidas, British Airways, and Lavazza have been early adopters of AIM since July. The platform’s success has led to its integration into CNN’s digital campaigns, where it is used on 90% of campaigns.
Behind AIM are various adtech vendors, including Snowflake and DMP provider Permutive. Permutive is working with several broadcasters globally to develop advanced contextual advertising approaches tailored to their specific needs. The goal is to understand user behavior on a granular level to enhance targeting capabilities and improve ad effectiveness.
Warner Bros. emphasizes the premium positioning of AIM, highlighting that it is not available on open auctions and targets household brands and franchises. The low frequency of ads within Warner Bros.‘ streaming services ensures that audiences are not overwhelmed with advertising messages, creating a more streamlined and effective ad experience for viewers.
As linear advertising revenues decline, media companies like Warner Bros. see streaming advertising revenue as a crucial part of their future business models. The company’s second-quarter earnings report showed a significant increase in ad sales across its streaming services, indicating the growing importance of CTV in driving revenue growth.
While some advertisers previously found the measurement and targeting capabilities of CTV offerings lacking, platforms like AIM and Olli are changing the game. Advertisers are now increasing their CTV budgets and scaling up their use of the channel for significant ad buys. With improved targeting and measurement capabilities, CTV is becoming a key revenue driver for media companies like Warner Bros., paving the way for further growth in the future.