disney is beta testing a new advertising tool for streaming services that matches commercials with appropriate scenes from movies and shows.
The tool, called “Magic Words,” uses artificial intelligence and machine learning to analyze and tag scenes in Disney’s library of movies and TV series, Reuters reported on Friday (February 9). Reported.
According to the report, Disney’s Magic Words tool analyzes and tags scenes to identify content, branding, imagery, and mood within each scene. This information is used as metadata that brands can leverage to personalize their messages.
This new form of contextual advertising for the company’s Disney+ and Hulu streaming services allows advertisers to connect with consumers’ emotions and buy specific audiences away from broader demographics, the report says. .
According to the report, Disney partnered with six global advertising companies to beta test the new advertising product. The aim is to resonate with the concept experienced by viewers and maximize advertising effectiveness.
The report said Disney’s investment in streaming advertising technology is timely as advertisers increasingly move away from traditional broadcast and cable TV. The company’s advertising revenue fell nearly 3% in the first quarter of 2024, reflecting a decline in traditional TV viewership.
In contrast, the ad-supported version of the Disney+ streaming service attracted more than 1,000 advertisers in the first quarter alone, the report said.
This 10x increase since launch was helped by Disney’s improvements over the years in ad technology specifically designed for streaming, according to the report. Disney’s Hulu streaming service, which launched as a free ad-supported service in 2008, played a role in this process.
The news comes about a month after it was reported that Amazon, another provider of streaming services, could realize nearly $5 billion in annual revenue from its video advertising efforts.
Most of that funding will come from the tech giant’s decision, announced in December, to add commercials to Prime Video movies and TV shows for North American users and give them the option to pay an additional $3 a month to watch movies. obtained from. Displayed without ads.
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