Disney's Magic Words: AI-Backed Advertising Transforms Streaming Commercials

In a groundbreaking move, Walt Disney is leveraging artificial intelligence to revolutionize advertising on its streaming platforms, Disney+ and Hulu. The innovative tool, named "Disney's Magic Words," utilizes a combination of AI and machine learning to analyze scenes within movies or TV series, allowing brands to tailor their commercials to match specific moods or contexts.

**Disney's Magic Words: A New Era in Contextual Advertising**

Disney's Magic Words introduces a unique form of contextual advertising by analyzing and tagging scenes across Disney's extensive library. The tool identifies contents, brands, images, and mood, enabling advertisers to leverage descriptive tags, known as metadata, for personalizing messaging based on specific scenes or moods. This groundbreaking approach aims to enhance the impact of advertisements by resonating with viewers' emotions and experiences.

**Connecting with Audiences on a Deeper Level**

Geoffrey Calabrese, Chief Investment Officer at Omnicom Media Group, emphasizes the shift from broad demographics to specific audience targeting. Magic Words enables advertisers to connect with consumers at an emotional level, fundamentally transforming the advertising game. Early beta testing includes global advertising giants such as Dentsu, GroupM, Horizon Media, IPG Mediabrands, and Publicis Media.

**Disney's Streaming Advertising Landscape**

As advertisers increasingly shift away from traditional broadcast and cable TV, Disney's investment in streaming ad technology becomes pivotal. The company's advertising revenue declined nearly 3 percent in the fiscal 2024 first quarter, reflecting the broader trend of declining traditional TV viewership.

Disney+ accounted for an estimated $790 million in revenue last year, according to eMarketer. CEO Bob Iger revealed that the ad-supported version of Disney+ attracted over 1,000 advertisers in the first quarter alone, marking a tenfold increase from its launch.

**Maximizing Message Impact through Emotive Resonance**

Rita Ferro, Disney's Global Head of Ad Sales, emphasizes how Disney's Magic Words allows advertisers to maximize the impact of their messages by resonating with concepts that viewers experience. This unique approach aligns with Disney's commitment to technological innovation, ensuring its streaming portfolio remains a top destination for brands in the years ahead.

**Disney's Evolution in Streaming Ad Technology**

Half of Disney+ subscribers opt for the ad-supported version, showcasing the success of Disney's strategic approach. Joe Earley, President of Disney's Direct-to-Consumer Business, highlights the company's years-long commitment to refining ad technology tailored specifically for streaming. Hulu, a pioneer in ad-supported streaming since 2008, serves as a testament to Disney's continued innovation in the evolving landscape of streaming services.

Disney's Magic Words represents a significant leap forward in the realm of contextual advertising, fostering deeper connections between brands and viewers on its streaming platforms.