Updated February 10th, 2024 at 14:13 IST
Disney unveils AI-powered streaming ad tool to revolutionise contextual advertising
Disney said that six global advertising giants are participating in an early beta test of this advertising product.
- 2 min read
Disney AI-powered Ads: Walt Disney is revolutionising the advertising landscape with its latest innovation, "Disney's Magic Words," a cutting-edge tool leveraging artificial intelligence (AI) to tailor commercials based on the mood of specific scenes within movies or TV series streamed on Disney+ and Hulu.
This technology, utilising AI and machine learning algorithms, analyses and tags scenes across Disney's vast library, identifying content, brands, images, and mood. Dubbed "metadata," these descriptive tags enable brands to personalise their messaging to align with specific scenes or emotional tones.
Geoffrey Calabrese, Chief Investment Officer at Omnicom Media Group, emphasised the transformative potential of this tool, stating, "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."
Disney said that six global advertising giants are participating in an early beta test of this advertising product. Alongside Omnicom, the beta partners include Dentsu, GroupM, Horizon Media, IPG Mediabrands, and Publicis Media. This collaboration aims to refine and optimise the capabilities of the new ad features introduced last month at the Consumer Electronics Show in Las Vegas.
Rita Ferro, Disney's Global Head of Ad Sales, highlighted the tool's potential to enhance ad effectiveness by resonating with viewers' experiences. This investment in streaming ad technology comes as advertisers increasingly shift away from traditional broadcast and cable TV platforms.
Disney's advertising revenue declined nearly 3 per cent in the first quarter of fiscal 2024, reflecting shifts in consumer viewing habits. However, its streaming services, particularly Disney+, have emerged as significant revenue drivers. CEO Bob Iger noted the exponential growth of advertisers on the ad-supported version of Disney+, indicating its appeal to brands.
Joe Earley, President of Disney's Direct-to-Consumer Business, underscored the company's commitment to refining ad technology tailored for streaming platforms. With half of Disney+ subscribers opting for the ad-supported tier, Disney's extensive experience, dating back to Hulu's launch as a free, advertising-supported service in 2008, positions it as a leader in the evolving streaming advertising landscape.
"Disney+ didn't have to ramp up," Earley remarked. "It hit the ground running." With "Disney's Magic Words," Disney aims to cement its streaming portfolio as the ultimate destination for brands seeking to engage with consumers in innovative ways.
(With Reuters inputs.)
Published February 10th, 2024 at 14:13 IST