AI drives streaming ad technology for industry giants like Disney and Netflix. By enabling contextual advertising, Artificial Intelligence tailors ads to match viewers’ moods, preferences, and themes, providing a personalized experience.


SwissCognitive Guest Blogger: Dilshad Durani – “How AI Drives Streaming AD Technology?”


SwissCognitive_Logo_RGBUnderstanding Contextual Advertising

Traditional advertising methods rely on demographic targeting, which aims to reach targeted audiences in segments. However, contextual advertising takes a completely different approach.

Contextual ads use the context of the consumed content. In simple words, ads are tailored to match viewers’ moods, preferences, and themes, providing a more personalized ad experience.

How AI Drives Streaming Ad Technology for Disney?

Walt Disney is harnessing AI to power ad tools that help brands tailor their commercials to fit viewers’ screens within a TV series and movie.

Disney’s innovative approach with “Magic Words” exemplifies how AI is powering contextual advertising in streaming services. By analyzing scenes across its vast library using AI and machine learning, Disney can identify the mood, content, and brands featured in each scene.

Brands can use metadata (descriptive tags) to identify specific moods and personalize messages to match their tone. A OTT streaming script similar to Netflix and Disney are investing in artificial intelligence to provide personalized and improved experiences to viewers.

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Disney has invested in streaming ad technology as it moves away from cable TV and broadcast, along with viewers. Hulu’s and Disney’s streaming giants services ad revenue fell almost 3% in the first quarter of 2024.

According to the eMarketer report, Netflix outpaces Disney’s ad revenue by $1.03 billion versus Disney’s $911.9 million.

Source: (eMarketer)

Disney relies on streaming ad technology that powers the linear TV business and Hulu, which helps the company to increase its ad revenues.

Personalized Messaging

AI-driven streaming ad technology enables brands to move beyond demographic targeting and embrace personalized messaging.

By leveraging metadata and AI insights, advertisers can craft tailored messages that resonate with individual viewers based on their viewing preferences and emotional cues. This shift towards audience-centric advertising promises higher engagement and conversion rates.

Beta Testing and Industry Adoption

Disney’s partnership with leading advertising companies like Omnicom, Dentsu, and GroupM underscores the industry’s growing interest in AI-driven streaming ad technology. Beta testing initiatives aim to refine and optimize these new advertising tools, paving the way for widespread adoption across streaming platforms.

Rise of Ad-Supported Streaming Services

As consumers increasingly gravitate towards ad-supported streaming options, platforms like Disney+ and Hulu are seizing the opportunity to monetize through targeted advertising. AI-powered ad technology enables these platforms to deliver relevant ads seamlessly integrated into the viewing experience, balancing user satisfaction with revenue generation.

Future Prospects and Innovations

Looking ahead, AI-driven streaming ad technology holds immense potential for further innovation and refinement. Advancements in computer vision, natural language processing (NLP), and predictive analytics will enable even deeper insights into viewer behavior and preferences, fueling the next wave of personalized advertising solutions.


AI is driving a paradigm shift in streaming ad technology, ushering in an era of contextual advertising and personalized messaging. From Disney’s Magic Words to Netflix’s sophisticated recommendation algorithms, AI-powered solutions transform how brands connect with consumers in the digital age. As the streaming landscape continues to transform, we expect artificial intelligence to remain at the forefront of innovation, shaping the future of advertising in the streaming era.

About the Author:

Dilshad Durani is a seasoned Digital Marketer and Content Creator currently contributing her expertise to the dynamic team at Alphanso Technology, a leading company specializing in Eventbrite clone and event management system in PHP development. She is curious to learn new things and is passionate about helping people understand market trends, changing marketing approaches, business ethics, and more with her writing.