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Jan. 21, 2025, 1:01 a.m.
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The Rise of AI-Driven Product Placements in Marketing

Brief news summary

Brands are increasingly adopting virtual product placement technologies to boost influencer-driven content. Mirriad has successfully embedded products into well-known films like "Ghostbusters: Frozen Empire" and South Korea's "Maestra." Although marketing agencies express mixed opinions on the costs and flexibility of these technologies, they agree on the power of influencer marketing, as consumers tend to trust their favorite influencers' recommendations. BENlabs is leading the charge in virtual placements, partnering with Mirriad to enhance in-content advertising across various platforms. However, challenges persist, particularly regarding brand limitations on generative AI content and the necessity for ethical marketing practices. Despite these obstacles, the potential for these technologies to enrich influencer collaborations is hopeful, especially in visually-driven fields like fashion and beauty. As virtual placements become more popular, they are likely to blend paid and organic marketing strategies more effectively, resulting in a cohesive approach to brand promotion.

Brands are now able to leverage new platforms for natural and scalable product placements, which could enhance both influencer content and traditional advertising methods. For instance, Mirriad integrated its virtual product placements in events like the 2024 TV Upfronts and worked with Cheetos on "Ghostbusters: Frozen Empire. " Similarly, South Korean company Inshorts applied AI product placement in the drama "Maestra. " Despite the promising potential of these tools, opinions among agencies are mixed, with some expressing enthusiasm for their flexibility while others are wary of costs and integration challenges. Lindsey Lehmann from PMG highlighted the fast turnaround that these methods allow, emphasizing that many consumers are influenced by social media recommendations. This poses an opportunity for virtual placements to extend influencer marketing to a broader range of creators and brands. The company BENlabs aims to focus on influencer marketing, product placements, and optimization tools, positioning itself as a leader in this emerging field. As CEO Ted Sheffield noted, blending traditional media with modern platforms is increasingly crucial for reaching audiences who consume diverse content. Recently, BENlabs partnered with Mirriad to expand its advertising capabilities across various media, tapping into a network of 15 million creators and brands. However, challenges remain regarding the acceptance of AI and virtual placements in marketing.

Some brands are still resistant, explicitly banning generative AI content in contracts. Chris Jacks from HireInfluence indicated that although there is currently little demand for AI-driven product placements, the trend may shift toward using AI to enhance content visually. Both Kelly Dye from Acorn Influence and Jacks acknowledged the potential benefits of AI for personalizing advertisements and lowering production costs. However, they cautioned that the adoption of these technologies will hinge on performance metrics, ethical considerations, and concerns about authenticity. There may also be issues with creators feeling less ownership over their content due to post-production changes. Certain visually-driven sectors, such as fashion and beauty, might be more inclined to explore these technologies. While PMG clients have yet to adopt AI-driven product placement, interest is reportedly growing, with expectations for significant expansion by 2025 as these techniques bridge paid media and organic content. Lehmann believes that virtual placements can seamlessly integrate products into creators’ narratives, enhancing overall marketing strategies.


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