Even before the 2024 MTV Video Music Awards kick off Wednesday, advertisers are already the big winners. Paramount, which focused on the impact of its live offerings in its TV upfront pitch to advertisers, is putting brands in the middle of this year’s Megan Thee Stallion-hosted VMAs through integrations, influencer activations, on-the-ground executions, and more. According to the company, the show will feature eight-plus minutes of in-show branded content, the most it’s ever offered.
The in-show branded content, which is brought to life by Paramount’s Brand Studio and Paramount Advertising, will showcase longer-form custom creative and native creative in and around programming, making advertisers essential parts of the event’s cultural moments.
“There is a theme around the increasing relevance of live programming in a consumer marketplace that is really fragmented across all of these video-on-demand offerings,” John Halley, Paramount’s ad sales president, told ADWEEK. “The VMAs is the single most innovative platform for brand integration and brand voice in our tentpole calendar—I would argue, across any tentpole calendar.”
In addition to the in-show content, Paramount is bringing in 30 advertisers, eight marketing partners, using four bespoke influencer deals consisting of multiple influencer activations, and creating almost 100 unique pieces of branded content across its platforms.
In 2023, the company’s Paramount Brand Studio created more than 200 custom creative assets for the music event. However, brands leaning into long-form in 2024 meant less quantity and more in-depth projects.
“It’s more long-form than ever before,” Matt Newcomb, senior vice president of integrated marketing, Paramount Brand Studio, said.
In addition, the company is introducing new innovations, such as Shopsense AI Lens at the VMA—in partnership with Macy’s—allowing fans to shop the entire VMAs broadcast from the red carpet to the stage for the first time.
Shoppable Ads Are The New Frontier
When viewers tune in to the 2024 MTV VMAs on Wednesday night, they'll be able to shop the outfits and designer looks they're seeing in real time, as legacy media companies look for new ways to monetize content.
The partnership and potential future deals could boost both retailers taking a hit as consumers pull back discretionary spending, and legacy media companies that have tried to maintain profits in a challenging landscape. Each time a person buys something through the new feature, or in some cases even when they just click on an item, some revenue will go back to Paramount, according to Shopsense.
“Everyone's got their phone or their tablet in their hand while they're watching TV,” Bryan Quinn, a former Amazon executive and Shopsense's co-founder and president, told CNBC in an interview. “This allows folks, in a non-disruptive way ... to go through that shopping journey without pausing the content.”
Paramount's partnership with Shopsense was a key component of its Upfront presentation in May, a time when media companies make their annual pitch to advertisers. The agreement comes as legacy media companies look to generate new revenue streams and find different ways to monetize their content.
While media companies have relied on ad revenue for some time, it's become more important as they look to make their streaming businesses profitable. Paramount — which recently agreed to a merger with Skydance Media — will air the VMAs on both MTV and its streaming platform, Paramount+.
AI’s Role in the Future of Media
Advertisers and media companies have been leaning into generative AI tools, such as shoppable advertising. Disney announced a similar partnership earlier this year with Gateway Shop, and launched a beta program for its first native streaming shoppable ad format.
Across the ad industry, the growth of AI is “revolutionizing how brands reach audiences,” said Natalie Bastian, global chief marketing officer at Teads.
“The integration of AI is driving measurable outcomes, maximizing media effectiveness and improving return on ad spend across the industry,” Bastian said.
How the Shopsense Lens Will Work
Since most celebrities attending the VMAs on Wednesday will likely be wearing custom, couture items, the Shopsense software will suggest so-called dupes at a range of price points. It can recognize more than 1 billion items that are sold off the rack, according to Shopsense.
“For impulse buys, the immediacy of this format is particularly effective, as it capitalizes on the viewer's spontaneous desires, often triggered by limited-time offers or exclusive deals,” said Laura Taylor, retail media investment lead at Goodway Group.
A Growing Trend in the Ad Industry
TV viewership is largely driven by live events, namely sports, news and awards shows such as the VMAs. As it draws the most eyeballs, live content has attracted the most advertising dollars, even as the ad market is in the midst of a rebound from down years.
The ad market slumped soon after the onset of the pandemic, as companies often pull back on advertising spending during times of economic uncertainty. However, companies have reported this year that the ad market is on the rebound, especially for streaming and digital players.
While advertising revenue for Paramount's traditional TV business dropped during its second quarter, Paramount+ turned its first profit, driven by subscriber growth and higher prices. Though a wave of consumers has shifted from the pay TV bundle toward streaming, the majority of viewership still comes from traditional TV viewing, said John Halley, president of Paramount Advertising.
A Seamless Shopping Experience
As Paramount gears up for another major live event, Halley called the Shopsense integration “totally game changing” when it comes to how viewers will experience the VMAs.
“It's something that provides brands an amazing access point and opportunity to reach consumers ... in an environment that is actionable to purchase their products,” said Halley.
“Once you get the consumer into the environment, No. 1, they tend to dwell, so they'll go through and look at a bunch of stuff, and No. 2, the revenue per user in those environments is extremely high. The conversion rates are high,” he said. “It's really a matter of bringing the consumer into the second screen experience and the tech does the rest of it.”
The Future of Shoppable TV
Down the line, Shopsense is looking to work with other media companies and their wardrobe teams so viewers can shop the exact products featured on all sorts of television programs, such as the power blazers featured on HBO's “Industry” or the cookware featured on Fox's “MasterChef.”
“We're turning TV into this retail powerhouse, right?” said Glenn Fishback, Shopsense's CEO and other co-founder. “We're promoting, enabling and activating and allowing the prospective TV broadcasters to win back the living room and create this curated secondary screen experience. This should be a form of entertainment that not only am I enjoying the shows, I can buy the furniture. I'm a part of it, and that's what we think the Lens does.”
Quinn declined to say what other broadcasters the retailer is in negotiations with, but did say Shopsense is in “active conversations with all the major media companies.”
Shopsense has teamed up with over 1,000 retailers, including Macy's, Nordstrom, Urban Outfitters and Revolve, to feature their products in the platform. The partnership gives retailers a chance to capture customers at the moment they're inspired by something they're watching on television. It's another example of how they're leveraging artificial intelligence to make online shopping more experiential and engaging — though it's unclear whether it drive significant sales.
In 2022, Walmart teamed up with Roku to create interactive product ads that allowed viewers to use their remote to click on an item and purchase it. However, the consumer was required to pause the content and use their TV screen to check out, which took them away from what they were watching and wasn't exactly a seamless shopping experience.
“The biggest difference here is complete lack of friction. You pull a phone out, you point it at the TV, and here comes the gallery,” said Paramount's Halley. “What we've learned over and over and over again is it has to be a seamless experience. You can't require a viewer to take a fundamentally different behavior, right? People are typically watching television with their phones and an opportunity to extend the ... experience right there to the second screen is incredibly compelling.”
Curated Collections Beyond Red Carpet Style
Not only will consumers be able to find the looks they're seeing on television, Shopsense will also feature curated collections inspired by the content. For example, as the VMAs kick off on Wednesday night, it'll feature lookalikes from last year's event and a curated “Get ready with me” selection from Macy's that includes red carpet looks, fragrances and accessories, Shopsense said.
“We're often times bringing in similar items that are thematically aligned with the content,” said Quinn.
For example, a curated selection of winter looks in New York could accompany a season of Disney's “Only Murders in the Building” or a range of burnt-orange clothing could be offered with a Texas Longhorns game.
Jessica Ramirez, a senior research analyst at Jane Hali & Associates, said marrying television with retail is a great way to help consumers with product research and reel them in when many are cutting back on discretionary purchases.
“When you're watching TV, you're looking at something. 'Oh I really like that lipstick, I like that dress, maybe it's something I want to wear for a wedding' and if there's a way for you to easily browse while you're shopping, it's another channel,” said Ramirez. “It's a great idea and it makes sense, but with these kinds of things, execution is crucial.”
The New Era of TV Viewing
The future of TV viewing is about more than just the content on screen. It’s about creating an immersive experience that connects viewers to the products they see, the brands they love, and the culture they crave. As AI continues to evolve, we can expect to see even more innovative ways to bridge the gap between the screen and the shopping cart. The VMAs are just the beginning.
