In gamechanger move, Walt Disney harnesses AI to stream ads that fit the mood of specific scenes

tech.hindustantimes.com:

Walt Disney 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 "Disney's Magic Words," this tool introduces a new form of contextual advertising for the Disney and 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 (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."

Omnicom is one of six global advertising companies taking part in an early beta test of this advertising product, Disney told Reuters. The other beta partners are Dentsu, GroupM, Horizon Media, IPG Mediabrands and Publicis Media. The company announced the new ad features last month, at a showcase at the Consumer Electronics Show in Las Vegas.

Rita Ferro, 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 Disney accounted for about $790 million in revenue last year.

CEO Bob Iger told investors during the company's quarterly investor call on Wednesday that the ad-supported version of the Disney