Disney+’s ad-supported version reportedly drew in over 1,000 advertisers during its first quarter of operation.Walt Disney is using artificial intelligence to power a new tool for marketers that will allow them to customise commercials to match the tone of particular scenes in films or television shows.
This tool, which goes by the name “Disney’s Magic Words,” presents a fresh take on contextual advertising for the Disney+ and Hulu streaming services. It analyses and tags scenes in its library using a combination of artificial intelligence (AI) and machine learning to determine the contents, brands, images, and mood.
These metadata-enabled descriptive tags allow brands to pinpoint a scene or mood and then tailor their messaging accordingly.
Chief investment officer of Omnicom Media Group Geoffrey Calabrese stated, “That means buying specific audiences and leaving broad demos (demographics) behind.” “I will be able to emotionally connect with the customer through these magic words, even at the audience level. And that’s really changed the game for us.”
Disney informed Reuters that six international advertising firms, including Omnicom, are participating in an early beta test of this advertising product. Dentsu, GroupM, Horizon Media, IPG Mediabrands, and Publicis Media are the other beta partners. During a showcase at the Consumer Electronics Show in Las Vegas last month, the company revealed the new ad features.
Disney’s worldwide head of ad sales, Rita Ferro, stated that the feature enables marketers to maximise the impact of their messaging “because it resonates with concepts that the viewers experience.”
Disney’s investment in streaming ad technology coincides with advertisers and viewers shifting away from broadcast and cable TV. According to LSEG, the company’s advertising revenue decreased by almost 3% in the first quarter of its fiscal 2024, totaling $3.35 billion (about Rs. 29,100 crore). This decline was attributed to a decline in traditional TV viewership. According to research firm eMarketer, Disney+ brought in about $790 million (or roughly Rs. 6,600 crore) in revenue in the previous year.
Disney is not disclosing its advertising income.During the company’s quarterly investor call on Wednesday, CEO Bob Iger revealed to investors that the ad-supported Disney+ service has drawn over 1,000 advertisers in the first quarter, a tenfold increase since its launch.
“Our revolutionary approach to technology ensures that our entire streaming portfolio will be the ultimate destination for brands in the years ahead,” Iger said in a Reuters statement.
Disney+’s less expensive version, which includes advertising, is chosen by half of users, according to Joe Earley, president of Disney’s direct-to-consumer division. According to him, the business has been honing its streaming-specific ad technology for years. In 2008, the company launched its free, ad-supported Hulu service.
