Walt Disney is using AI technology to power new advertising tools on its platform, such as Disney+ and Hulu. The new tool, Disney’s Magic Word, will analyze and tag scenes across its library to match the atmosphere of the film or series and introduce contextually appropriate advertising. Advertisers can use descriptive tags to target ads, and the tool will help connect with consumer emotions at the audience level. The initial beta test of this advertising product includes partners such as Omnicom, Dentsu, and GroupM. Disney’s CEO Bob Iger stated that the ad-supported version of Disney+ attracted over 1,000 advertisers in the first quarter, and the technology will ensure the company’s streaming portfolio remains a top destination for advertisers.
Walt Disney will use AI technology to power new advertising tools on its platform. This is done so that the advertisements that appear on Disney+ can match the atmosphere of the film or series.
Gadget360 reported on Monday (12/02/2024), this new tool will be called Disney’s Magic Word and is intended to introduce a contextually appropriate form of advertising for its streaming service, be it Disney+ or Hulu.
This tool uses a combination of AI and machine learning to analyze and tag scenes across its library and identify content, branding, images and audience mood.
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Companies that advertise on Disney+ can use descriptive tags so that ads can be recognized as metadata to identify certain scenes or atmosphere, so that ads can be targeted.
Omnicom Media Group Chief Investment Officer Geoffrey Calabrese said this new tool will help broadcast advertisements according to the target audience.
“Disney Magic Words will really be able to connect me with consumer emotions, at the audience level. And for us, this is really groundbreaking,” said Calabrese
Omnicom is one of six global advertising companies taking part in the initial beta test of this advertising product.
Other partners in beta testing are Dentsu, GroupM, Horizon Media, IPG Mediabrands, and Publicis Media. The company announced the new advertising feature last month, at an exhibition at the Consumer Electronics Show in Las Vegas.
Rita Ferro, Head of Global Advertising Sales at Disney, said this feature allows advertisers to maximize the impact of their messages, because the messages match the concepts experienced by the audience.
Disney’s investment in streaming ad technology comes as advertisers shift away from broadcast and cable TV, along with viewers. However, the company’s advertising revenue fell nearly 3 percent in the first quarter of fiscal 2024 to $3.35 billion, according to LSEG.
Disney CEO Bob Iger told investors during the company’s quarterly investor call on Wednesday that the ad-supported version of the Disney+ service attracted more than 1,000 advertisers in the first quarter, which is a tenfold increase since launch.
“Our revolutionary approach to technology ensures that our entire streaming portfolio will be the go-to destination for companies in the years to come,” Iger said in a statement to Reuters.
Meanwhile, half of consumers who subscribe to Disney+ are choosing the cheaper version of the service, which will contain ads, according to Joe Earley, Disney’s head of consumer sales.
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He also said his company has spent years perfecting ad technology designed specifically for streaming. On the other hand, Hulu Service was launched as a free, ad-supported service in 2008. (FY/IF)
