Disney Using New AI-Backed Advertising Tool For Disney+, Hulu Ads

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 analyse 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 personalise 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 maximise 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 percent in its fiscal 2024 first quarter to $3.35 billion (roughly Rs. 29,100 crore), according to LSEG, reflecting declines in traditional TV viewership. Researcher eMarketer estimated Disney+ accounted for about $790 million (roughly Rs. 6,600 crore) in revenue last year.

Disney does not report its advertising revenue.

CEO Bob Iger told investors during the company’s quarterly investor call on Wednesday that the ad-supported version of the Disney+ service has attracted more than 1,000 advertisers in the first quarter, a tenfold increase from launch.

“Our revolutionary approach to technology ensures that our entire streaming portfolio will be the ultimate destination for brands in the years ahead,” Iger said in a statement to Reuters.

Half of consumers who sign up for Disney+ opt for the less-expensive version of the service, which includes advertising, said Joe Earley, president of Disney’s direct-to-consumer business. He said the company has spent years refining ad technology that has been designed specifically for streaming. Its Hulu service launched as a free, advertising-supported service in 2008.

“Disney+ didn’t have to ramp up,” Earley said. “It hit the ground running.”

© Thomson Reuters 2024


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Twitter Offers Advertisers Incentives Amid Marketer Exodus After Elon Musk Takeover: Report

Twitter is offering advertisers incentives to increase their spending on the platform, according to an email sent on Thursday to advertising agencies, an effort to jump-start its business after Elon Musk’s takeover prompted many companies to pull back.

Details of the incentive offer were first reported by newsletter Marketing Brew.

Twitter billed the offer as the “biggest advertiser incentive ever on Twitter,” according to the email reviewed by Reuters. US advertisers who book $500,000 (roughly Rs. 4 crore) in incremental spending will qualify to have their spending matched with a “100 percent value add,” up to a $1 million cap, the email said.

Musk’s first month as Twitter’s owner has included a slashing of staff including employees who work on content moderation and incidents of spammers impersonating major public companies, which has spooked the advertising industry.

Many companies from General Mills Inc to luxury automaker Audi of America stopped or paused advertising on Twitter since the acquisition, and Musk said in November that the company had seen a “massive” drop in revenue.

Musk previously stated that Twitter was experiencing a “massive drop in revenue” from the advertiser retreat, blaming a coalition of civil rights groups that has been pressing the platform’s top advertisers to take action if he did not protect content moderation.

Ad sales account for about 90 percent of Twitter’s revenue.

Twitter did not immediately respond to a Reuters request for comment.

Advertisers in Britain and Japan who book $250,000 (roughly Rs. 2 crore) in incremental spending would receive a 100 percent match, while brands in all other regions that spend $50,000 (roughly Rs. 40,57,100) would receive the match, according to the email.

Earlier in October, Musk said he wanted Twitter to be “the most respected advertising platform” and not a “free-for-all hellscape”, in a bid to gain the trust of ad buyers ahead of the close of his deal.

© Thomson Reuters 2022


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Kim Kardashian breaks silence on controversial Balenciaga kids ad campaign

Kim Kardashian is “re-evaluating” her relationship with Balenciaga after the brand drew backlash for producing an ad campaign featuring children holding teddy bears dressed in BDSM-style harnesses.

The star broke her silence on the controversy in a statement to Twitter Sunday night after fans had been demanding she denounce the luxury fashion house for several days.

“I have been quiet for the past few days, not because I haven’t been disgusted and outraged by the recent Balenciaga campaigns, but because I wanted an opportunity to speak to their team to understand for myself how this could have happened,” Kardashian wrote in an explanation.

“As a mother of four, I have been shaken by the disturbing images,” she added. “The safety of children must be held with the highest regard and any attempts to normalize child abuse of any kind should have no place in our society — period.”

Balenciaga pulled the troublesome campaign — which also included a printed copy of a US Supreme Court decision on child porn laws in the background of one image — Tuesday amid growing outcry and apologized for the bad news bears.

The advertisements supported Balenciaga’s spring 2023 collection, which debuted this fall at Paris Fashion Week.

“I appreciate Balenciaga’s removal of the campaigns and apology,” Kardashian tweeted. “In speaking with them, I believe they understand the seriousness of the issue and will take the necessary measures for this to never happen again.”

The Skims founder and reality star has a long history with Balenciaga, including posing in its winter 2022 campaign and walking in its Paris couture fashion show in July.

Nearly an hour after she posted her initial statement, Kardashian, 42, posted another statement about that history and working relationship.

“As for my future with Balenciaga, I am currently re-evaluating my relationship with the brand, basing it off their willingness to accept accountability for something that should have never happened to begin with — & the actions I am expecting to see them take to protect children,” she wrote.

Fans had been flooding Kardashian’s Instagram comment sections, slamming her for staying silent on the ad campaign.

“Nobody wants to buy anything from you. Speak up and stand for something,” one angry fan commented on her post that promoted a sale on her skin care line.

“When are you going to respond Kim?! Your reputation is on the line here,” another begged.

On Friday, Balenciaga filed a $25 million lawsuit against the production company and set designer behind the controversial ad campaign in an apparent attempt to shift the blame.



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