Disney leveraging AI for targeted streaming advertisements

AI for ads: Walt Disney is using artificial intelligence (AI) to introduce an advertising tool aimed at tailoring commercials to match the mood of specific scenes within movies or television series on its Disney+ and Hulu streaming platforms.

Named ‘magic words,’ this tool represents a novel form of contextual advertising, using AI and machine learning to analyse and tag scenes across Disney's vast content library. By identifying content, brands, images, and mood, this tool enables brands to personalise their messaging accordingly.

Geoffrey Calabrese, Chief Investment Officer at Omnicom Media Group, highlighted the significance of this advancement, highlighting its ability to connect advertisers with consumer emotions at an audience level.

Disney said that six global advertising companies, including Omnicom, are participating in an early beta test of this advertising product. The company unveiled these new ad features at the Consumer Electronics Show in Las Vegas last month.

Rita Ferro, Disney's Global Head of Ad Sales, underlined how this feature empowers advertisers to maximise the impact of their messages by resonating with viewers' experiences.

Disney's investment in streaming ad technology aligns with a broader trend as advertisers increasingly shift away from traditional TV platforms. While Disney's advertising revenue declined nearly 3 per cent in its fiscal 2024 first quarter, its streaming platforms offer promising opportunities. CEO Bob Iger highlighted the success of the ad-supported version of Disney+, which has attracted over 1,000 advertisers in the first quarter alone.

Joe Earley, President of Disney's Direct-to-Consumer Business, noted that Disney has been refining ad technology for streaming platforms for years, with Hulu pioneering advertising-supported streaming since 2008. Disney+'s seamless integration of advertising demonstrates its readiness to meet the evolving demands of the market.

(With Reuters inputs)