Disney is leveraging artificial intelligence (AI) to introduce a novel advertising tool aimed at enabling brands to tailor their commercials to match the mood of specific scenes within movies or TV shows, this innovative tool, named “Disney’s Magic Words,” represents a new era of contextual advertising on Disney’s streaming platforms, Disney+ and Hulu, promising to revolutionize how advertisements are presented across the company’s direct-to-consumer platforms.
The Mechanism Behind Disney’s Magic Words:
Utilizing a combination of AI and machine learning, Disney’s Magic Words analyzes scenes across Disney’s extensive content library, tagging them to identify content themes, brands, imagery, and mood, this data allows brands to create advertisements that align with the mood and context of specific scenes, offering a new level of contextual advertising precision, by moving beyond traditional demographic targeting, advertisers can customize their campaigns based on the emotional and thematic resonance of the content being viewed by the audience.
Advantages for Advertisers and Viewers:
This tool offers advertisers the ability to target specific audiences more effectively than broad demographic targeting, connecting ads with consumer emotions and enhancing the relevance of advertising messages, for viewers, this means advertisements that are more in tune with the content they are consuming, potentially leading to a more enjoyable and less intrusive viewing experience.
Early Adopters and Future Potential:
Omnicom is among six global advertising firms participating in the early testing phase of this advertising product, along with Dentsu, GroupM, Horizon Media, IPG Mediabrands, and Publicis Media, unveiled last month at the Consumer Electronics Show in Las Vegas, Disney’s Magic Words has been met with enthusiasm from the advertising industry, Rita Ferro, President of Global Advertising Sales at Disney, highlighted that this feature allows advertisers to maximize the impact of their messages by aligning with the viewers’ experiences.
The Context of Disney’s Investment in Advertising Technology:
Disney’s investment in advertising technology comes at a time when advertisers and viewers are moving away from traditional cable TV, despite a nearly 3% drop in advertising revenue to $3.35 billion in the first quarter of the fiscal year 2024, Disney+ has seen substantial growth in ad revenue, estimated at around $790 million last year by eMarketer, the ad-supported version of Disney+ has attracted more than 1,000 advertisers in the first quarter, a tenfold increase since its launch, according to CEO Bob Iger, this revolutionary approach ensures that Disney’s streaming services remain a prime destination for brands in the coming years.
Disney’s Magic Words represents a significant advancement in streaming advertising, providing a more personalized and contextually relevant advertising experience, by harnessing AI and machine learning, Disney is not only enhancing the viewer’s experience but also offering advertisers a sophisticated tool to reach their target audience effectively, this innovative approach underscores Disney’s commitment to pioneering advertising technology for direct-to-consumer platforms, setting a new standard for the industry.
