Disney Introduces AI-Powered Advertising Tool for Streaming Services

The new tool, 'Disney’s Magic Words,' aims to revolutionize contextual advertising by matching commercials with scene moods on Disney+ and Hulu.

Walt Disney Co employs artificial intelligence to develop 'Disney’s Magic Words,' a novel advertising tool for Disney+ and Hulu, aiming to match commercials with the mood of specific scenes.
The tool, in early beta testing with global advertising giants, uses AI and machine learning to analyze scenes and enable brands to tailor commercials, potentially revolutionizing contextual advertising.
Disney's investment in streaming ad technology comes as the industry moves away from traditional TV advertising, with the company experiencing a 3% decline in advertising revenue in its fiscal 2024 first quarter.
The ad-supported version of Disney+ has attracted more than 1,000 advertisers in the first quarter alone, indicating a significant interest in the new advertising model.
Disney reports a flat first-quarter revenue of $23.5 billion, missing Street consensus estimates, but its adjusted EPS of $1.22 beats expectations.