Walt Disney Corp. is leveraging AI to revolutionize advertising on its streaming platforms, Disney+ and Hulu, with “Disney’s Magic Words.”
Magic Words uses AI and machine learning to analyze scenes and identify content, brands, images, and moods, allowing brands to tailor commercials to match specific scenes or moods within movies or TV series.
AI allows for the creation of customizable segments based on various data points such as age, purchase history, or browsing behavior.
Personalizing marketing campaigns throughout all industries has been revolutionized by the advent of artificial intelligence.
By harnessing AI-generated insights into customer preferences and behavior, marketers can craft highly targeted messages that boost engagement and drive conversions.
Geoffrey Calabrese of Omnicom Media Group describes the technology as a game changer, enabling advertisers to connect with consumers’ emotions at an audience level, moving beyond broad demographics.
Omnicom is among the six global advertising companies participating in the early beta testing of this tool, along with Dentsu, GroupM, Horizon Media, IPG Mediabrands, and Publicis Media.
Rita Ferro, Disney’s global head of ad sales, highlights how this feature enhances advertisers’ ability to connect with viewers’ experiences “because it resonates with concepts that the viewers experience.”
This investment in streaming ad technology aligns with a shift away from traditional TV viewership. Disney’s ad revenue fell nearly 3% in the first quarter of fiscal year 2024, with Disney+ estimated to have generated $790 million in revenue last year.
With half of Disney+ subscribers opting for the ad-supported version, Disney’s years of refining ad technology for streaming platforms have positioned it for success.