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Disney launches AI-powered tool for targeted advertising on Disney+ and Hulu

Disney Plus

Disney continues to make moves in the tech world. After the $1.5 billion deal with Epic Games, Disney is bringing a new AI-powered advertising tool for brands and consumers.

Reuters reported that Disney is offering brands a new form of advertising that utilizes artificial intelligence to promote contextual advertising. This means, that when you’re using a Walt Disney service like Disney+ or Hulu, you will receive ads based on moods of particular scenes from the media you’re watching.

Disney will do so through a tool called “magic words.” The AI will detect and analyze images, moods, content, and brands being advertised or mentioned across Disney’s media library.

This metadata would allow brands to adjust the tone and message of their ad to fit the context they are being shown. Omnicom Media Group is one of the first advertising companies testing the new technology.

The company’s chief investment officer, Geoffrey Calabrese, appreciated the idea behind contextual advertising stating:

"What that means is leaving broad demos behind and buying specific audiences. 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."

Meanwhile, Rita Ferro, Disney's global head of ad sales, explained that using AI in advertising would help brands create a greater impact on consumers. It would “resonate with concepts that the viewers experience.”

Disney announced a combined app for Hulu and Disney+ back in May 2023, and we saw Disney+ content hitting Hulu around December 2023.

Since then, Disney has actively been on the lookout for potential password-sharing users. It even increased the price of its ad-free subscription plans to boost revenues. Yet, half of Disney+ subscribers still buy the least expensive plans that come with ads.

Bob Iger, CEO of Walt Disney, highlighted that the Disney+ basic (with ads) plan gathered over 1000 advertisers in the first quarter of 2023. Hence, the company intends to cater to more brands in the future as the CEO suggested in a statement to Reuters.

Source: Reuters

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