Disney Uses AI to Tailor Streaming Ads

Disney introduces “Disney’s Magic Words,” a new AI tool designed to customize advertisements on Disney+ and Hulu based on the mood and content of scenes.

Disney, the entertainment conglomerate, is integrating artificial intelligence (AI) into its advertising strategy, with a novel tool named “Disney's Magic Words,” that aims at revolutionizing the way in which brands connect with audiences on its Disney+ and Hulu platforms. This technology leverages AI and machine learning to dissect scenes within movies and television series, offering brands the opportunity to customize their advertisements based on the specific mood or content of a scene.

"Disney's Magic Words" operates by tagging scenes with descriptive metadata that brands can then use to identify a scene's mood or contents, allowing for highly personalized and fitting advertising messages. This shift from broad demographic targeting to a more nuanced, audience-specific approach represents a significant pivot in advertising strategy. Geoffrey Calabrese from Omnicom Media Group highlighted the potential of this tool to forge a deeper connection with viewers by aligning ad messages with the emotional context of the content being watched.

Disney's initiative is currently in a beta testing phase with participation from six global advertising firms, including Omnicom, Dentsu, and Publicis Media, among others. This development was announced at the Consumer Electronics Show in Las Vegas. CEO Bob Iger’s announcement that the ad-supported version of Disney+ has attracted over 1,000 advertisers since its launch demonstrates the platform’s growing appeal to brands.

This technological advancement comes at a time when Disney is doubling down on its streaming services. With a significant portion of Disney+ subscribers opting for the ad-supported version, Disney has been keen on refining its ad technology to enhance the viewer experience. Joe Earley, president of Disney's direct-to-consumer business, emphasized the company's preparedness and focus on creating an optimal advertising environment within its streaming services, including Disney+ and Hulu.