In an era where advertisers are constantly seeking innovative ways to capture the attention of their target audiences, Disney is taking a leap forward by harnessing the power of artificial intelligence (AI) to revolutionize contextual advertising. The media giant has developed a tool called “magic words,” which uses AI and machine learning to analyze and tag scenes within its vast library of movies and TV shows. By identifying the contents, brands, images, and mood of each scene, Disney can offer brands the opportunity to tailor their commercials to fit the specific mood of a particular scene. This groundbreaking technology is set to transform the advertising landscape for Disney+ and Hulu viewers.
The magic words tool allows brands to personalize their messaging based on the emotional context of a scene, going beyond traditional broad demographic targeting. This means that advertisers can connect with audiences on a more individualistic level, tapping into the emotions and experiences that viewers are going through while watching a particular scene. Geoffrey Calabrese, Chief Investment Officer of Omnicom Media Group, one of the companies participating in the early beta test of this advertising product, described this advancement as a “game changer.” By aligning the advertiser’s message with the viewer’s emotional state, brands can maximize the impact of their advertisements.
Disney’s investment in streaming ad technology comes at a time when advertisers are shifting away from traditional broadcast and cable TV. This trend is reflected in the decline in Disney’s advertising revenue, which fell nearly 3% in the first quarter of its fiscal year to $3.35 billion. The rise of streaming services and the decline in traditional TV viewership have prompted Disney to adapt and find new ways to engage advertisers and viewers alike.
By introducing the magic words tool, Disney aims to create a powerful synergy between advertisers, streaming platforms, and viewers. Rita Ferro, Disney’s Global Head of Ad Sales, emphasizes that this technology resonates with concepts that viewers experience, maximizing the impact of advertisements. This approach not only benefits brands by delivering more personalized and targeted messaging, but it also enhances the viewing experience for consumers by ensuring that the ads they see align with the content they are watching.
Disney is well positioned to leverage this technology due to the success of its streaming services. CEO Bob Iger revealed during an investor call that the ad-supported version of Disney+ has attracted over 1,000 advertisers in its first quarter, a tenfold increase since its launch. Joe Earley, President of Disney’s Direct-to-Consumer Business, notes that half of consumers who sign up for Disney+ choose the less-expensive version that includes advertising. Disney’s years of experience in refining ad technology for streaming, beginning with the ad-supported version of Hulu in 2008, have given them a headstart in this rapidly evolving landscape.
With the introduction of magic words, Disney is solidifying its position as a trailblazer in the world of advertising. By combining AI and machine learning to personalize advertising based on the emotional context of a scene, Disney is redefining the way brands connect with their target audiences. As the media landscape continues to shift, it is clear that Disney’s investment in streaming ad technology is paving the way for the future of advertising. CEO Bob Iger sums it up by stating, “Our revolutionary approach to technology ensures that our entire streaming portfolio will be the ultimate destination for brands in the years ahead.” Magic words indeed have the power to unlock the full potential of advertising in the digital age.
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