Monday, October 05, 2020

The new age of product placement

As technology continues to evolve, more and more marketing activities are falling under the umbrella of digital marketing and product placement is no exception. A company called Ryff considers themselves the “the future of brand integration”. They are using AI technology and virtually inserting products into fully mastered and edited content. For example, you might be watching an episode of Friends on Netflix and Ryff can digitally insert a bottle of Coke into the scene sitting on the counter in the kitchen. This is a huge opportunity for advertisers, especially in the CPG space to get their products in front of consumers, especially on non-ad-supported platforms like a Netflix  or Hulu Premium (which likely contain a large portion of the target demographic with a higher willingness to pay). Because all the placements are done virtually, they can be changes immediately and companies can purchase ad placement inventory in flight weeks similar to how TV or OTT ad inventory is purchased, rather than investing in airing in a show or movie in perpetuity. The company is also able to change the digital renderings to match seasonally packaging (i.e. shift to using Starbucks red cups during December flighting). Furthermore, as Ryff continues to build out their capabilities, they are working on creating personalized content based on consumer data. For example, I might see a can of Babe wine ad when I tune into Friends while my friend might see a can of Budweiser in the same scene when he is logged into his account. It will be interesting to see how this all plays out and if consumers will notice the products enough to improve sales metrics. Will we see more companies showing up in our favorite shows and will this become the norm in the next few years? Will consumers realize that they are being personally targeted and if they do, will they care?

https://www.ryff.com/

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