When viewers tune in to the 2024 MTV VMAs on Wednesday night, they will be able to purchase the clothing and designer looks they see in real time, as traditional media companies look for new ways to monetize content.
As part of a new partnership Paramount Worldwide The parent company of cable network MTV and shopping advertising company Shopsense AI have teamed up so that viewers will be able to shop for the outfits they see on screen using the startup’s new artificial intelligence lens, which will be rolled out at the start of the awards show, Shopsense told CNBC.
The company said the software will allow viewers to snap a photo of their favorite look as it appears on screen and then browse similar options suggested by Shopsense’s product recognition algorithms.
The partnership and potential future deals could push retailers hit as consumers scale back discretionary spending, as well as traditional media companies trying to maintain profits in a challenging environment. Shopsense said that every time people buy something through the new feature, or in some cases, even if they just click on an item, some of the revenue goes back to Paramount.
“Everyone has a phone or tablet in their hand when they’re watching TV,” Bryan Quinn, a former Amazon executive and co-founder and president of Shopsense, told CNBC. “This allows people to A distraction-free way to complete your shopping journey without pausing your content.”
Paramount’s partnership with Shopsense is an important part of its Upfront presentation in May, the media company’s annual pitch to advertisers. The agreement comes as traditional media companies look to create new revenue streams and find different ways to monetize their content.
While media companies have long relied on advertising revenue, it has become more important as they look to profit from their streaming businesses. Paramount – Lately agree Merged with Skydance Media – will air the VMAs on MTV and its streaming platform Paramount+.
Tradition meets artificial intelligence
Advertisers and media companies have been leaning toward the use of generative AI tools, such as shoppable ads. disney declare It formed a similar partnership with Gateway Shop earlier this year and launched a beta program for its first native in-stream shopping ad format.
Natalie Bastian, global chief marketing officer of Teads, said that throughout the advertising industry, the development of artificial intelligence is “completely changing the way brands reach their audiences.”
“The integration of artificial intelligence is driving measurable results, maximizing media efficiency and improving return on ad spend across the industry,” Bastian said.
Since most of the celebrities attending the VMAs on Wednesday will likely be wearing custom couture, the Shopsense software will suggest so-called “scams” in a range of price points. According to Shopsense, it can identify more than 1 billion off-the-shelf products.
Laura Taylor, head of retail media investments at Goodway Group, said: “This form of immediacy is particularly effective for impulse purchases because it taps into the audience’s spontaneous desire, which is often driven by Triggered by limited time offers or exclusive offers.
Television ratings are primarily driven by live events, namely sporting events, news and award shows (such as the VMAs). Because live content is the most eye-catching, it attracts the most advertising dollars, even though the ad market is rebounding from a downturn.
The advertising market plummeted shortly after the outbreak, as companies often cut ad spending during times of economic uncertainty. However, the company reported this year that the ad market is rebounding, particularly for streaming and digital players.
And advertising revenue from Paramount’s traditional television business fall Paramount+ turned a profit for the first time in the second quarter, driven by subscriber growth and price increases. John Halley, president of Paramount Advertising, said that while consumers have shifted from pay-TV bundles to streaming, the majority of viewership still comes from traditional TV viewing.
As Paramount prepares for another major live event, Harley calls the Shopsense integration a “complete game-changer” in how audiences experience the VMAs.
“It gives brands an amazing access point and opportunity to reach consumers … in an environment where their products can be purchased,” Harley said.
“Once you get consumers into this environment, number one, they tend to stay, so they browse and view a bunch of stuff, and number two, the revenue per user in these environments is very high. Conversion rates are very high,” he said . “It’s really a matter of getting consumers into the second-screen experience, and the technology does the rest.”
Going forward, Shopsense is looking to partner with other media companies and their apparel teams so viewers can purchase the exact products featured in various TV shows, such as the power blazer featured on HBO’s “Industry” or the cooking utensils. fox’s “Chef.”
“We’re turning television into a retail giant, right?” said Shopsense CEO and co-founder Glenn Fishback. “We are promoting, enabling and activating the future of TV broadcasters to reclaim the living room and create this curated second screen experience. It should be a form of entertainment where I can not only enjoy the show but also buy the furniture I is part of it, that’s what we think the lens does.
Quinn declined to say which other broadcasters the retailer was in talks with, but said Shopsense was in “active conversations with all major media companies.”
What about retailers?
Shopsense has partnered with over 1,000 retailers including macy’s department store, Nordstrom, urban clothing store and arounddisplaying their products on the platform. This partnership gives retailers the opportunity to capture customers At the moment, they are inspired by something they watch on television. Here’s another example of how they’re using artificial intelligence to make Online shopping experience is better And attractive — though it’s unclear whether it will generate significant sales.
2022, Walmart and Year create Interactive product advertising Allow viewers to use their remote control to click on items and purchase them. However, consumers are required to pause content and use the TV screen to checkout, which takes them away from the content they are watching and is not a seamless shopping experience.
“The big difference here is there’s no friction at all. You take out your phone, point it at the TV, and the gallery is there,” said Paramount’s Harley. “What we’ve learned over and over again is that it has to be a seamless experience. You can’t ask viewers to take fundamentally different behaviors, right? People typically watch TV on their phones and have the opportunity to extend their viewing time.” … The experience on the second screen is compelling.
Not only will consumers be able to find looks they see on TV, Shopsense will also feature curated collections inspired by the content. For example, Shopsense said that as the VMAs kick off Wednesday night, it will feature similar products from last year’s event, as well as Macy’s curated “Get Ready with Me” selection, which includes red carpet looks, fragrances and accessories .
“We often bring in similar projects that align with the theme of the content,” Quinn said.
For example, New York’s carefully curated winter looks can be worn throughout the season. disney “Only Murder in the Building” or a range of burnt orange apparel can be offered at Texas Longhorns games.
Jessica Ramirez, senior research analyst at Jane Hali & Associates, said combining TV with retail is a great way to help consumers conduct product research and engage them at a time when many are making less discretionary purchases.
“When you watch TV, you see something. ‘Oh, I really like that lipstick, I like that dress, maybe that’s something I want to wear to the wedding.’ If there was a way to do that, It’s another channel for you to easily browse while you’re watching TV while you’re shopping,” Ramirez said. “It’s a good idea and it makes sense, but with things like this, execution is critical.”
