Disney leverages AI to drive streaming ad-technology

Walt Disney is utilising artificial intelligence to develop a new advertising tool, enabling brands to customise their commercials to match the mood of specific scenes in movies or TV shows.

Dubbed ‘Disney's Magic Words,’  the tool introduces a new form of contextual advertising for the Disney+ and Hulu streaming services. It employs a blend of AI and machine learning to analyse and tag scenes in its library, identifying content, brands, images, and mood.

Brands can use these descriptive tags, known as metadata, to identify a specific scene or mood and then personalise messaging to match.

Geoffrey Calabrese, Chief Investment Officer, Omnicom Media Group, said, "What that means is leaving broad demos (demographics) behind and buying specific audiences. These magic words are literally going to be able to connect me to the emotions of the consumer, at an audience level. And for us, that's really a game changer."

Omnicom is one of six global advertising companies taking part in an early beta test of this advertising product, as per media reports The other beta partners are Dentsu, GroupM, Horizon Media, IPG Mediabrands and Publicis Media. The company announced the new ad features last month, at a showcase at the Consumer Electronics Show in Las Vegas.

Rita Ferro, Disney's global head of ad sales, said the feature allows advertisers to maximise the impact of their messages "because it resonates with concepts that the viewers experience."

Disney's investment in streaming ad technology comes as advertisers are moving away from broadcast and cable TV, along with viewers. The company's advertising revenue fell nearly 3% in its fiscal 2024 first quarter to $3.35 billion, according to LSEG, reflecting declines in traditional TV viewership. Researcher eMarketer estimated Disney+ accounted for about $790 million in revenue last year.

Disney does not report its ad revenue.

CEO Bob Iger told investors during the company's quarterly investor call on Wednesday that the ad-supported version of the Disney+ service has attracted more than 1,000 advertisers in the first quarter, a tenfold increase from launch.

Info@BestMediaInfo.com