Entertainment giant Disney (DIS) and tech firm Amazon (AMZN) have formed a new partnership to improve ad targeting for streaming TV, according to The Hollywood Reporter. Indeed, Disney’s Real-Time Ad Exchange (called DRAX) will be linked with Amazon’s Demand Side Platform (DSP) to help advertisers target the right audience. This means that advertisers using Amazon’s system will now have better access to Disney’s ad-supported content, including Disney+, Hulu, and ESPN+. As a result, viewers will see more relevant ads, and advertisers will be able to reach their ideal customers more easily.

Interestingly, the deal was announced at the Cannes Lions advertising event, where both companies explained how this partnership brings together Amazon’s shopping data with Disney’s large streaming audience. For example, a pet food brand could target consumers who buy pet supplies on Amazon and watch pet-related shows on Disney platforms. Matt Barnes, VP of programmatic sales at Disney, highlighted how this partnership increases access to both inventory and viewer data, which ultimately helps advertisers drive better results.

The new ad tools are expected to launch in the third quarter of 2025 and will be available internationally. Advertisers using Amazon’s DSP will also get access to Disney+ content in countries like the UK, Germany, France, Spain, and more. According to Kelly MacLean, VP of Amazon DSP, this partnership benefits everyone, as brands reach the right people, Disney makes better use of its ad space, and viewers receive ads that are actually relevant to them.

Turning to Wall Street, out of the two stocks mentioned above, analysts think that AMZN stock has more room to run than DIS. In fact, AMZN’s price target of $241.64 per share implies more than 12% upside versus Disney’s 6.3%.

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