Walt Disney is using artificial intelligence to fuel a new tool for marketers that will allow them to customise adverts to match the tone of particular scenes in films or television shows.

This technique, which goes by the name “Disney’s Magic Words,” presents a fresh take on contextual advertising for the Disney+ and Hulu streaming services. It analyses and tags scenes in its library using a combination of artificial intelligence (AI) and machine learning, detecting the contents, brands, visuals, and mood.

These evocative markers, sometimes referred to as metadata, allow brands to pinpoint a particular setting or emotion and then tailor their content accordingly.

“What that means is leaving broad demos (demographics) behind and buying specific audiences,” said Geoffrey Calabrese, Omnicom Media Group’s chief investment officer. “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.”

Disney informed Reuters that six international advertising firms, including Omnicom, are participating in an early beta test of this advertising product. Dentsu GroupM, Horizon Media, IPG Mediabrands, and Publicis Media are the other beta partners. During a showcase at the Consumer Electronics Show in Las Vegas last month, the business revealed the new ad features.

Advertisers can optimise the impact of their messaging using this capability, according to Rita Ferro, Disney’s worldwide head of ad sales, “because it resonates with concepts that the viewers experience.”

Disney is investing in streaming ad technology at a time when both consumers and advertisers are turning away from broadcast and cable TV.

According to LSEG, the company’s advertising revenue decreased by over 3% to $3.35 billion in the first quarter of its fiscal 2024, which was attributed to a decrease in traditional TV viewership. Disney+ generated an estimated $790 million in revenue last year, according to research firm eMarketer.

Disney withholds its earnings from advertising.

The ad-supported Disney+ programme has drawn more than 1,000 sponsors in the first quarter, a tenfold growth since debut, CEO Bob Iger said investors during the company’s quarterly investor call on Wednesday.

“Our revolutionary approach to technology ensures that our entire streaming portfolio will be the ultimate destination for brands in the years ahead,” Iger said in a statement to the media.

Disney+’s less priced version, which includes advertising, is chosen by half of users, according to Joe Earley, head of Disney’s direct-to-consumer division. According to him, the business has been honing its streaming-specific ad technology for years. In 2008, the company debuted its free, ad-supported Hulu service.

“Disney+ didn’t have to ramp up,” Earley said. “It hit the ground running.”

(Adapted from ThePrint.in)