Disney Announces New Ad Strategy that Targets ‘Specific’ Moods
By Movieguide® Contributor
Disney CEO Bob Iger praised the company’s revenue from ads while unveiling a new opportunity for marketers at the company’s fourth annual Tech and Data Showcase at CES in Las Vegas.
“We know from a century of experience that when we marry our exceptional creativity with our relentless commitment to innovation, the results are never less than extraordinary,” Iger said in a video message during the showcase. “The possibilities before us have never been more exciting and I’m so pleased for you to hear from the team today about the trails they’re blazing.”
In the past year, Disney added an ad-supported tier to Disney+, the success of which was a major focus during this showcase. However, the company’s data for the final months of 2023 have yet to be disclosed, leaving everyone in the dark about how big of an impact the ad tier has had on the platform’s profitability.
Nonetheless, Disney Advertising President Rita Ferro revealed that half of all new Disney+ subscribers are choosing the ad tier. Furthermore, the viewing time between the ad tier and ad-free tier are roughly the same, which expresses “the combined quality of our user experience, our content and our advertising,” Ferro said.
Despite Disney+ only adding an ad tier this year, Disney touted its decades of experience with ad-supported streaming through Hulu.
“We’re not renting or borrowing our technology,” Ferro said. “It’s no one else’s technology. We own it. And unlike others, who recently decided to get into the advertising business as part of their business strategy, Disney is in it from the beginning.”
The company closed off the event with new branding avenues for advertisers to explore, with the highlight being new technology Disney has dubbed Magic Words. This tech enables brands to target specific moods by inserting their ads at emotional moments during shows or movies.
“Through the power of this context, brands can capture a specific moment, mood or emotion and personalize your message around this emotion. We believe the combination of being able to reach the right audience in just that right moment or mood has the potential to be magic,” Ferro said.
Magic Words is still in development but is expected to be fully implemented by the end of 2024.
Movieguide® previously reported on Disney:
Having helmed Disney for a full year, Bob Iger is expected to discuss the entertainment giant’s future direction in a company town hall.
Last November, a week after he was brought on as CEO of Disney, Iger used a town hall to outline his plans going forward.
“We have a great set of assets here,” he said. “Nothing is forever, but I am very, very comfortable with each of the assets that we have.”
While many in the industry believed Iger would be able to get the company back on track, he has had more difficulties than expected. Disney saw problems in nearly every aspect of its business this year as its streaming, movie and park businesses all struggled.
However, after a strong third quarter, Iger believes he has finally “fixed” the company, enabling it to enter a new building stage.
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