The 2024 VMAs will feature live shopping collaborations between retailers and media companies.

• The 2024 MTV VMAs will feature shoppable advertising from Shopsense AI, allowing viewers to purchase the red carpet looks they see in real time.
• The "Lens" feature by Shopsense will be introduced at the awards show, enabling viewers to take photos of outfits displayed on screens and receive product recommendations.
• The company is in talks with other major media companies to bring the tech to various programming, including scripted television and sporting events.

During the 2024 MTV VMAs on Wednesday night, viewers will have the opportunity to purchase the outfits and designer looks they see in real-time, as legacy media companies explore new methods of monetizing their content.

The partnership between MTV's parent company and Shopsense AI will enable viewers to purchase the outfits they see on screen during the awards show, using Shopsense's new AI-powered lens, which will be launched at the start of the event, according to Shopsense.

Shopsense's product recognition algorithm will suggest similar options to viewers who take photos of their favorite looks as they appear on screen, the company announced.

The collaboration and future agreements could benefit both retailers that are experiencing a decline in sales due to consumers cutting back on discretionary spending, as well as legacy media companies that are struggling to maintain profits in a challenging market. With the new feature, every time a person makes a purchase or clicks on an item, some revenue will be returned to Paramount, as stated by Shopsense.

"According to Bryan Quinn, a former Amazon executive and Shopsense's co-founder and president, people are using their phones or tablets while watching TV to shop without disrupting the content."

In May, Paramount showcased its partnership with Shopsense as a crucial element of its Upfront presentation to advertisers, as legacy media companies seek to explore new revenue streams and discover innovative ways to monetize their content.

As media companies seek to profit from their streaming businesses, ad revenue has become increasingly important. Paramount, which recently merged with Skydance Media, will broadcast the VMAs on both MTV and its streaming platform, Paramount+.

Legacy meets AI

Disney has partnered with Gateway Shop to launch a beta program for its first native streaming shoppable ad format, following the trend of advertisers and media companies utilizing generative AI tools like shoppable advertising.

The global chief marketing officer at Teads, Natalie Bastian, stated that the growth of AI is "transforming the way brands connect with their target audiences" across the advertising industry.

Bastian stated that the incorporation of AI is resulting in tangible results, enhancing advertising effectiveness, and increasing the return on investment in the advertising sector.

The Shopsense software will suggest affordable alternatives, known as dupes, to the custom, couture outfits that most celebrities will wear at the VMAs on Wednesday. It can recognize over a billion items that are sold off the rack, according to Shopsense.

Laura Taylor, retail media investment lead at Goodway Group, stated that the immediacy of this format is particularly effective for impulse buys, as it capitalizes on the viewer's spontaneous desires, often triggered by limited-time offers or exclusive deals.

The primary driver of TV viewership is live events, including sports, news, and awards shows such as the VMAs. Due to its ability to attract the most viewers, live content has garnered the most advertising dollars, despite the ad market experiencing a decline in recent years.

The ad market experienced a decline following the pandemic, but it has since recovered, particularly for streaming and digital advertisers.

Despite a decline in advertising revenue for Paramount's traditional TV business in the second quarter, Paramount+ recorded its first profit thanks to an increase in subscribers and higher prices. John Halley, president of Paramount Advertising, stated that although a significant number of consumers have shifted from pay TV bundles to streaming services, the majority of viewership still comes from traditional TV viewing.

Halley described the Shopsense integration as "totally game changing" for the VMAs, as Paramount prepares for another major live event.

Halley stated that it offers brands a valuable chance to connect with consumers through an easily purchasable environment.

""Bringing the consumer into the second screen experience is crucial as they tend to dwell and look at a lot of stuff, resulting in extremely high revenue per user and conversion rates. The tech takes care of the rest," he stated."

Shopsense aims to collaborate with media companies and their wardrobe teams to enable viewers to purchase the products showcased on various TV programs, including the power blazers from "Industry" on HBO and the cookware from "MasterChef."

"We're transforming TV into a retail powerhouse by promoting, enabling, and activating a curated secondary screen experience that allows prospective TV broadcasters to win back the living room and create an entertainment experience that not only entertains but also allows users to purchase furniture," said Glenn Fishback, CEO and co-founder of Shopsense. "The Lens is designed to make users feel like they are a part of the entertainment experience, and we believe it will be a game-changer in the industry."

Shopsense is in active conversations with all the major media companies, but Quinn declined to reveal other broadcasters the retailer is in negotiations with.

What about the retailers?

Shopsense has collaborated with over 1,000 retailers, including , , and , to showcase their products on the platform. This partnership allows retailers to target customers who are inspired by something they're watching on television. It's an example of how Shopsense is using artificial intelligence to enhance online shopping and make it more interactive. However, it's uncertain whether this strategy will lead to substantial sales.

In 2022, teamed up with to create interactive product ads that enabled viewers to purchase items using their remote. However, the consumer had to pause the content and use their TV screen to check out, which disrupted their viewing experience.

"The key difference here is the absence of friction. When you pull out your phone and point it at the TV, the gallery appears instantly," said Paramount's Halley. "Our experience has taught us that it must be seamless. We cannot expect viewers to change their behavior fundamentally. People usually watch TV with their phones, and the opportunity to extend the experience to the second screen is highly compelling."

Shopsense will not only offer consumers the ability to find the looks they see on television, but also feature curated collections inspired by television content. For instance, on Wednesday night during the VMAs, Shopsense will feature lookalikes from the previous year's event as well as a curated "Get ready with me" selection from Macy's that includes red carpet looks, fragrances, and accessories.

"We frequently bring in items that are thematically aligned with the content," said Quinn.

A curated selection of summer looks in Los Angeles could accompany a season of "Euphoria."

A senior research analyst at Jane Hali & Associates, Jessica Ramirez, stated that combining television with retail is an effective method for assisting consumers in product research and attracting them when many are reducing their discretionary spending.

"Ramirez stated that when watching TV, one might think, "I like that lipstick, dress, maybe it's something I want to wear for a wedding," and if there's an easy way to browse while shopping, it's another channel. While the concept is sound, execution is crucial for these types of things."