How Disney+ is Using AI-Backed Advertising Tools?

In a transformative move, Disney+ is rewriting advertising rules by harnessing the power of artificial intelligence. The innovative tool, aptly named “Disney’s Magic Words,” is not just an evolution but a revolution in contextual advertising, as it marks a groundbreaking shift from broad demographics to personalized, mood-driven ad experiences.

Disney’s Magic Words: A Symphony of AI & Emotion

At the heart of this advertising revolution is Disney’s Magic Words, a sophisticated AI-powered tool that combines artificial intelligence and machine learning. Instead of relying on traditional demographic data, the tool analyzes scenes within Disney’s vast content library. This enables brands to align their commercials with the specific mood or context of movies and TV series, creating a more immersive and tailored advertising experience.

The tool meticulously identifies and tags scenes, extracting information such as content, brands, images, and mood. This wealth of data is then stored as metadata, allowing advertisers to craft personalized messaging that resonates with viewers more deeply emotionally. The result is a form of contextual advertising that goes beyond demographics, connecting with audiences through shared emotions and experiences.

Connecting Emotionally: The Core of Magic Words

Geoffrey Calabrese, Chief Investment Officer at Omnicom Media Group, underscores the transformative nature of Magic Words. The tool enables advertisers to move beyond traditional audience targeting, connecting with consumers emotionally. By tailoring advertisements to specific scenes or moods, brands can create an impactful and memorable engagement with their target audience.

Beta Testing with Global Giants

Disney’s Magic Words is currently undergoing beta testing with significant advertising players, including global giants such as Dentsu, GroupM, Horizon Media, IPG Mediabrands, and Publicis Media. This collaborative effort signifies the industry’s recognition of the tool’s potential to redefine advertising.

Disney+ and the Streaming Advertising Landscape

As traditional TV viewership declines, Disney’s investment in streaming ad technology becomes increasingly pivotal. In the fiscal 2024 first quarter, the company experienced a nearly 3 percent decline in advertising revenue, reflecting the broader industry trend. With Disney+ generating an estimated $790 million in revenue last year, according to eMarketer, the platform is positioned as a critical player in the streaming space.

CEO Bob Iger’s revelation about the ad-supported version of Disney+ attracting over 1,000 advertisers in the first quarter alone underscores the platform’s appeal to brands. This represents a tenfold increase from its launch, highlighting the growing importance of streaming services in the advertising ecosystem.

Why Disney+ is Using AI-backed Advertising Tool?

In a landscape dominated by streaming platforms, Disney+ is not just content with delivering captivating stories but is also reshaping the advertising experience through the ingenious use of artificial intelligence. Introducing “Disney’s Magic Words,” an AI-backed advertising tool, reflects the streaming giant’s commitment to staying at the forefront of innovation. Let’s delve into the reasons behind Disney+’s strategic move into the realm of AI-powered advertising.

Personalized Engagement

According to a study by Salesforce, 84% of customers state that being treated like a person, not a number, is crucial to winning their business. One of the primary motivations behind Disney’s adoption of an AI-backed advertising tool is the desire to offer viewers a more personalized and engaging experience.

Traditional demographic targeting has its limitations, often missing the nuanced preferences and emotions that make each viewer unique. With Magic Words, Disney+ can tap into the power of machine learning to analyze scenes, identify moods, and tailor advertisements based on individual preferences. This level of personalization enhances user engagement and ensures that advertisements resonate on a deeper emotional level.

Context is Key

Disney’s Magic Words goes beyond conventional advertising by focusing on the content’s context. A report by Forbes Insights reveals that 74% of consumers get frustrated with content that has nothing to do with their interests. Instead of bombarding viewers with generic commercials, the tool analyzes the specific scenes and moods within Disney’s extensive library.

By connecting advertisements with the context of the content, brands can create a seamless and immersive experience for viewers. This contextual approach captures attention and enhances the overall storytelling aspect of advertising, aligning seamlessly with Disney’s narrative-driven ethos.

Adapting to Changing Consumer Behavior

Traditional TV viewing declined by 18% among adults aged 18-49 from Q4 2019 to Q4 2020. The decline in traditional TV viewership indicates that consumers are shifting towards streaming platforms. Recognizing this trend, Disney+ is adapting its advertising strategy to align with the changing behavior of its audience. AI-backed tools like Magic Words allow the platform to offer a more relevant and modern advertising experience, catering to the preferences of viewers who increasingly favor streaming over traditional broadcast and cable TV.

Industry Leadership & Competition

As a significant player in the streaming industry, Disney+ recognizes the critical importance of staying ahead of the competition. The beta testing phase, featuring collaborations with advertising giants such as Dentsu, GroupM, and others, highlights Disney+’s commitment to innovation and underscores the industry’s acknowledgment of the transformative potential of Magic Words.

In a landscape where streaming services are vying for audience attention, the strategic move to pioneer AI-driven advertising positions Disney+ as an industry leader. This initiative sets new standards that competitors, including renowned platforms like Netflix and Hulu, may aspire to emulate. By embracing artificial intelligence in advertising, Disney+ is not merely keeping pace with the industry; it is charting a course that could redefine the future of streaming advertising, establishing itself as a trailblazer in a fiercely competitive market.

Revenue Diversification

eMarketer estimates that US advertisers will spend $59.62 billion on digital advertising in 2024, surpassing traditional TV ad spending for the first time. The introduction of an AI-backed advertising tool is not only about enhancing user experience but also about diversifying revenue streams.

The decline in traditional advertising revenue in the fiscal 2024 quarter highlights the need for innovative approaches. Disney+ aims to capitalize on advertisers’ growing interest in streaming platforms, attracting over 1,000 advertisers to its ad-supported version in the first quarter alone. This diversification strategy positions Disney+ as a key player in the evolving landscape of streaming advertising.

Disney+ Redefining Ad Engagement Through AI

In the era of streaming dominance, Disney+ is not merely adapting to change but leading the charge with innovations like Magic Words. By leveraging artificial intelligence to connect with audiences on a profound emotional level, Disney+ is redefining ad engagement and setting the stage for the future of streaming advertising.

As the industry witnesses the transformative impact of Magic Words, it’s evident that the marriage of AI and storytelling is poised to create an advertising experience that transcends the boundaries of traditional demographics. Disney’s Magic Words is not just a tool; it’s a testament to the power of technology to elevate storytelling and revolutionize how we connect with brands.

Author Bio

Gaurav Kanabar is the Founder and CEO of Alphanso Technology, a leading company specializing in PHP Ticket System Open-Source and Eventbrite clone development. Beyond his role in the corporate realm, Gaurav is a dedicated knowledge-sharer. His desire to empower others with industry wisdom reflects a genuine commitment to fostering growth and innovation within the tech community.