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Disney unveils AI-powered ad tool for tailored streaming commercials

Disney has introduced “Disney’s Magic Words,” an AI tool aimed at revolutionizing advertising on its streaming platforms, Disney+ and Hulu, according to a recent Reuters report. This new technology employs AI and machine learning to analyze scenes within Disney’s extensive content library, enabling advertisers to match their ads with the mood and context of specific scenes.

By identifying and tagging scenes with metadata that includes information on content, brands, imagery, and mood, “Disney’s Magic Words” allows for a more precise form of contextual advertising. This approach moves beyond traditional demographic targeting, offering advertisers the opportunity to personalize their messaging based on the emotional and thematic resonance of the content viewers are watching.

Geoffrey Calabrese, Chief Investment Officer at Omnicom Media Group, one of the six global advertising firms participating in the early beta test of the product, praised the tool for its potential to connect advertisers with the emotions of consumers on a more granular level. Other beta partners include Dentsu, GroupM, Horizon Media, IPG Mediabrands, and Publicis Media.

The technology was showcased last month at the Consumer Electronics Show in Las Vegas, where Rita Ferro, Disney’s global head of ad sales, emphasized its ability to enhance the impact of advertisements by aligning them with viewer experiences.

The initiative comes as advertisers increasingly shift their focus from traditional TV to streaming services, in line with changing viewer habits. Despite a nearly 3% decline in advertising revenue to $3.35 billion in the fiscal first quarter of 2024, Disney remains optimistic about the future of streaming advertisements. CEO Bob Iger reported that the ad-supported version of Disney+ attracted over 1,000 advertisers in the first quarter, a significant increase since its launch.

Joe Earley, President of Disney’s direct-to-consumer business, highlighted the immediate success of Disney+ in utilizing advanced ad technology, a capability that has been refined over years, particularly with Hulu’s ad-supported service in 2008. According to Earley, Disney+ was able to leverage this technology effectively from the start.

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Maxwell Nelson
Tech Journalist

Maxwell Nelson, a seasoned journalist and content strategist, has contributed to industry-leading platforms, weaving complex narratives into insightful articles that resonate with a broad readership.

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