Summary
As viewers prepare to indulge in the 2024 MTV Video Music Awards (VMAs) this Wednesday night, an innovative opportunity awaits them: the ability to shop for the outfits and designer looks presented in real-time. This initiative represents a strategic collaboration between Paramount Global, the parent company of MTV, and Shopsense AI, an emerging leader in shoppable advertising technology. This partnership aims to monetize content in a landscape increasingly defined by changing consumer behavior and preferences. Shopsense AI’s new AI-powered lens, scheduled to debut at the beginning of the awards show, will empower viewers to photograph their favorite outfits displayed on screen and subsequently browse similar alternatives suggested by Shopsense’s advanced product recognition algorithm. This feature not only enhances the viewing experience but also potentially revitalizes retail opportunities as consumers are more discerning with their discretionary spending. Bryan Quinn, co-founder and president of Shopsense, emphasized that this technology allows individuals to engage in shopping seamlessly while they enjoy their programming. “Everyone’s got their phone or their tablet in their hand while they’re watching TV. This allows folks, in a non-disruptive way, to go through that shopping journey without pausing the content,” he stated in a recent interview with CNBC. This innovative approach is particularly timely for media companies, such as Paramount, that are eager to establish new revenue streams amidst challenging market conditions. During its Upfront presentation in May, Paramount highlighted this collaboration as crucial for attracting advertisers in a competitive market. The integration of live shopping into broadcasts not only diversifies revenue sources but helps legacy media firms like Paramount maintain profitability. Notably, while traditional television viewership has dwindled, live events like the VMAs continue to draw significant audiences, making them prime targets for advertising investment. The shift towards AI-driven advertising strategies has been notable across the industry. Companies such as Disney have also explored similar avenues, further emphasizing the trend of leveraging technology to enhance viewer engagement and purchasing power. This aligns with insights provided by Natalie Bastian, global chief marketing officer at Teads, who remarked on the transformative impact of AI in optimizing brands’ connections with their audiences by driving measurable outcomes. Shopsense’s capabilities enable it to identify over one billion retail items, ensuring viewers can access a broad range of products corresponding to the custom couture often displayed at major awards shows. Laura Taylor, retail media investment lead at Goodway Group, noted that the immediacy of this shopping format caters effectively to impulse purchases, particularly when viewers are motivated by limited-time offers or exclusive deals. While traditional television advertising revenues have faced various challenges, streaming services like Paramount+ are beginning to demonstrate profitability, bolstered by subscriber growth and increased pricing strategies. Paramount’s advertising president, John Halley, considered the Shopsense integration revolutionary, stating, “It provides brands an amazing access point and opportunity to reach consumers … in an environment that is actionable to purchase their products.” He further highlighted the high revenue potential and engagement associated with this seamless shopping experience. Moreover, Shopsense’s future ambitions involve collaborating with various media companies and their wardrobe teams to allow viewers to shop for products featured in a wide array of television programs. As Shopsense’s CEO, Glenn Fishback, articulated, “We are promoting, enabling and activating… this curated secondary screen experience.” Additionally, Shopsense has established partnerships with over 1,000 retailers, including prominent names like Macy’s, Nordstrom, Urban Outfitters, and Revolve, affording them the ability to capture consumer interest at the moment of inspiration. This integration illustrates a broader trend where retailers aim to utilize artificial intelligence to create more engaging online shopping experiences. In conclusion, the synergy between media companies and retail brands marks a transformative shift in how audiences engage with television programming and shopping. As consumers increasingly expect seamless experiences, this initiative not only enhances viewer satisfaction but also promises to reshape traditional advertising and merchandising strategies. The execution of these innovative ideas will be paramount to their success, as noted by Jessica Ramirez, a senior research analyst at Jane Hali & Associates, who underscored the importance of precise execution in creating effective shopping channels during viewing experiences.
Original Source: www.cnbc.com
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