Walt Disney is revolutionizing advertising with the introduction of Disney’s Magic Words, an AI-powered tool that enables brands to tailor their commercials to match the mood of specific scenes within movies or TV series. This new form of contextual advertising combines AI and machine learning to analyze and tag scenes, identifying content, brands, images, and mood.
By utilizing descriptive tags, known as metadata, brands can personalize their messaging to fit a specific scene or mood. This allows them to connect with audiences on a deeper emotional level, leaving behind broad demographics and targeting specific consumer emotions instead.
Disney is currently running an early beta test of this advertising product with six global advertising companies, including Omnicom Media Group, Dentsu, GroupM, Horizon Media, IPG Mediabrands, and Publicis Media. The goal is to maximize the impact of advertisements by aligning them with the concepts and emotions experienced by viewers.
The move towards streaming ad technology comes as advertisers and viewers shift away from traditional TV platforms. Disney’s advertising revenue dropped nearly 3% in the first quarter of fiscal 2024, reflecting declines in traditional TV viewership. To counter this, Disney aims to position its streaming portfolio as the ultimate destination for brands by leveraging innovative technology.
During the company’s quarterly investor call, CEO Bob Iger announced that the ad-supported version of the Disney service has attracted over 1,000 advertisers in the first quarter alone, marking a tenfold increase from its launch. Approximately half of Disney subscribers opt for the less-expensive version of the service, which includes advertising. This demonstrates the success of Disney’s efforts to refine ad technology specifically tailored for streaming platforms.
Disney’s Hulu service, which launched as a free, advertising-supported platform in 2008, has provided the company years of experience in ad technology. As a result, Disney was able to hit the ground running with its streaming services, effectively capitalizing on the growing shift towards digital streaming.
By harnessing AI and machine learning to deliver personalized, mood-based advertising, Walt Disney is shaping the future of advertising within the streaming industry. As advertisers seek more targeted and impactful strategies, this innovative approach is set to transform the way brands connect with viewers, leaving a lasting impression through emotionally resonant advertisements.
