Disney harnesses 'AI' to drive streaming ad-technology
By Dawn Chmielewski
(Reuters) — Walt Disney (NYSE:DIS) is harnessing artificial intelligence to power a new advertising tool that will help brands tailor their commercials to fit the mood of specific scenes within a movie or television series.
Dubbed «magic words,» this tool introduces a new form of contextual advertising for the Disney+ an Hulu streaming services. It uses a combination of AI and machine learning to analyze and tag scenes across its library, identifying the contents, brands, images and mood.
Brands can use these descriptive tags, known as metadata, to identify a specific scene or mood and then personalize messaging to match.
«What that means is leaving broad demos behind and buying specific audiences,» said Geoffrey Calabrese, Omnicom Media Group's chief investment office. «These magic words are literally going to be able to connect me to the emotions of the consumer, at an audience level. And for us, that's really a game changer.»
Omnicom is one of six global advertising companies taking part in an early beta test of this advertising product, Disney told Reuters exclusively. The company announced the new ad features last month, at the Consumer Electronics Show in Las Vegas.
Rita Ferro (NYSE:FOE), Disney's global head of ad sales, said the feature allows advertisers to maximize the impact of their messages «because it resonates with concepts that the viewers experience.»
Disney's investment in streaming ad technology comes as advertisers are moving away from broadcast and cable TV, along with viewers. The company's advertising revenue fell nearly 3% in its fiscal 2024 first quarter to $3.35 billion, according to LSEG, reflecting declines in traditional TV viewership. Researcher eMarketer estimated
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