On February 9, 2024, Reuters reported that Walt Disney is leveraging artificial intelligence to enhance advertising on its Disney+ and Hulu streaming services. The new tool, dubbed “Disney’s Magic Words,” uses AI and machine learning to identify scenes, content, brands, images and moods within movies and TV series.
This innovative advertising approach allows brands to tailor their ads based on the specific mood or scene in which they appear. Using descriptive tags (metadata) generated by AI analysis, advertisers can tailor their messaging to the sentiments associated with a particular audience.
Jeffrey Calabrese, chief investment officer of Omnicom Media Group, highlighted the importance of this technology in connecting with audiences on an emotional level. “These magic words will literally enable me to connect with the consumer’s emotions on an audience level. And for us, that’s really a game changer,” he said.
Six global advertising companies, including Omnicom, Dentsu, GroupM, Horizon Media, IPG Mediabrands, and Publicis Media, are participating in early beta tests of Disney’s advertising products. The move was unveiled last month at the Consumer Electronics Show in Las Vegas.
Rita Farrow, Disney’s global head of ad sales, emphasized that this feature enables advertisers to maximize the impact of their messages by resonating with viewers’ experiences.
The move toward AI-powered streaming ad technology has come as traditional TV viewership declines, reflected in Disney’s ad revenue falling nearly 3% to $3.35 billion in the first quarter of fiscal 2024. Is. Advertisers are moving away from broadcast and cable TV, and Disney aims to capitalize on this trend.
Disney CEO Bob Iger shared during an investor call that the ad-supported version of Disney+ attracted more than 1,000 advertisers in the first quarter, a tenfold increase since its launch. Is. He expressed confidence in Disney’s streaming portfolio, saying, “Our revolutionary approach to technology ensures that our entire streaming portfolio will be the ultimate destination for brands for years to come.”
Joe Earley, president of Disney’s direct-to-consumer business, revealed that half of Disney+ subscribers opt for the less expensive version with ads. He highlighted Disney’s years of developing ad technology specifically for streaming, with Hulu a pioneer in the space, which launched in 2008 as a free, ad-supported service.
Finally, Disney’s investment in AI-powered contextual advertising reflects its commitment to being at the forefront of the evolving streaming landscape, allowing advertisers to engage with audiences in a more personalized and emotional way. Provides a platform to connect.