Tuesday, 12 March 2024 14:16

How Disney's New Streaming Service May Impact Ad Agencies in Denver

What Ad Agencies in Denver Need to Know about Disney's Newest Streaming Platform

The streaming industry has been booming over the decade or so, with major players like Netflix and Hulu dominating the market. This shift in consumer behavior has forced ad agencies to adapt and find new ways to target audiences effectively. The entry of a new Joint Venture sports streaming service between Disney-owned ESPN, Fox, and Warner Bros. Discovery into the already competitive streaming market could have a significant impact on advertisers. As these services gain popularity among viewers, we tend to see a shift in ad spending and marketing strategies for local agencies. In this article, we will explore the implications of this new sport-exclusive streaming service and discuss how ad agencies in Denver can possibly stay ahead of the curve.

A New Age of Digital Advertising in Denver

It's not new information that streaming services are in and cable is out (for the most part). The majority of streaming services offer ad-free or ad-limited experiences, allowing viewers to bypass traditional commercials. As a result, advertisers have had to adapt their strategies to reach their target audience. They now focus more on product placements and branded content within the actual streaming programs to engage viewers in a more subtle and integrated manner. Advertisers also rely on and utilize data from these streaming platforms to target specific demographics and personalize their advertising messages based on users’ viewing habits.

ESPN, Fox, and Warner Bros. Discovery Unite

Earlier this month, amidst the Superbowl hype, three major players in the entertainment industry, ESPN, Fox, and Warner Bros. Discovery, made headlines by revealing their collaboration on an upcoming Joint Venture sports streaming service. This partnership aims to revolutionize the way sports fans consume their favorite games and events at home. The new service, projected to launch in fall of 2024, promises an extensive range of sports content, including live streaming of popular tournaments, exclusive interviews with athletes, behind-the-scenes footage, and much more.

With ESPN's sports broadcasting, Fox's extensive sports network, and Warner Bros. Discovery's vast entertainment resources, this venture is poised to become a game-changer in the streaming industry. According to a New York Times article, "subscribers will be able to watch non-sports shows like 'The Simpsons' and 'The Bachelor' that are available on the channels. Subscribers will have access to 14 channels in total, as well as ESPN’s existing streaming service, ESPN+."

Although streaming platform consolidation had been a topic of speculation for some time in the industry, such as through mergers and acquisitions (M&A) or strategic partnerships, the announcement still made quite an impact within the sports broadcasting industry.

What a New Streaming Service Means for Advertisers

Sports channels have long been a stronghold for traditional cable TV, providing a haven for sports enthusiasts and advertisers alike. However, the rise of cord cutting has posed a significant challenge to this once-dominant medium, and with this new streaming service on the horizon, the advertising landscape is sure to see further disruption.

Ad agencies in Denver who previously relied on cable channels to generate leads will need to adjust their strategies to effectively engage with sports fans on this new platform. They will need to explore innovative ways to captivate viewers' attention amidst this evolving landscape, such as native advertising, interactive campaigns, and targeted sponsorships.

Opportunities to Adapt and Thrive

As the streaming service gains traction, it is likely to attract a diverse audience, including cord-cutters and international viewers — although some people predict it won't be too impactful on young people. With this platform, advertisers can potentially tap into a vast and engaged audience of sports enthusiasts, allowing them to reach their target market more effectively.

Fox Corp. Chairman Lachlan Murdoch claims this new venture "accesses a whole new market and really drives a tremendous amount of new reach that we weren’t servicing before." This could be an exciting chance for advertisers to expand their reach and connect with certain consumers who may have never subscribed to a paid streaming service before.

Gain Valuable Exposure Through Digital Advertising in Denver

As these media giants continue to amass content and attract a large user base, they present a new opportunity for businesses to reach a highly engaged audience through targeted advertising. However, this also means that competition will be fierce, and it will be crucial for businesses to work with experienced ad agencies to navigate this ever-changing landscape effectively.

Real FiG Advertising + Marketing, a leading ad agency in Denver, is well-equipped to help businesses make the most of this new advertising opportunity. We provide businesses with a comprehensive marketing strategy tailored to their specific goals and target audience, ensuring that they stand out in a crowded marketplace.

Get in touch with us today to discover the advertising possibilities for your Denver business.