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On Fri, 3 Jan, 4:01 PM UTC
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Rembrand raises $23M for AI-powered product placement in videos - SiliconANGLE
Rembrand raises $23M for AI-powered product placement in videos Artificial intelligence media company Rembrand, which uses AI-powered technology to place virtual objects in video content for brand marketing, said today it raised $23 million in new funding to expand from social media into connected TV formats. The Series A funding round was led by super{set} with participation from The Trade Desk and Naver D2SF. Existing investors including BOLD, the corporate venture capital arm of L'Oréal, and Greycroft also joined in the round. Almost everyone has experienced "product placement," it's when actors in a movie, TV show or other video content walk into a scene and they're drinking a can of Coke or there's a box of branded cereal sitting on a table. The idea is that the mere presence of the product in the video for the time being viewed provides marketing presence as people view the logo of the brand in its natural environment. Founded in 2022, Rembrand created software that uses AI that is aware of objects and people in a video allowing it to add virtual objects within a scene so that they appear to fit naturally. When the startup began, the company targeted YouTube and then expanded to LinkedIn, TikTok and Instagram. The additions happen in post-production, meaning that the shoot can happen and then the product placement happens afterwards and there's no impact on developing a story and sponsorships can be sold after content is made. This also means that content creators can monetize their entire content library, even videos previously created. Rembrand said that by using AI technology, creators maintain complete control over where virtual product placement happens, how it will be monetized and how rendering happens. The company calls its technology "generative fusion AI" because it allows creators to switch placements in and out as they change advertisers and brands while maintaining ownership of the integration. Unlike traditional advertising, the company argues that product placement is less aggressive and annoying than pre-roll ads, overlays and other types of advertisements that interrupt or distract viewers. Rembrand also said that traditional visual effects for product insertion can take weeks, but with its AI capabilities, virtual objects can be inserted within hours, allowing the monetization of videos quickly while they're still relevant. For brands and advertisers, the company said this is also a benefit because it allows them to customize their target audience and increase product visibility. Rembrand cited its own case studies showing that compared to standard video ads, insertions saw a five times higher video completion rate, eight times more screen time and 27% more brand awareness. The connected television market represents a major advertising channel with a $30 billion market, according to a report from LiveRamp. Video ads delivered to internet-connected TV devices include streaming sticks, gaming consoles and smart TVs and this represents a market that Rembrand is poised to expand into with its generative fusion technology, the company said. According to Liveramp, in the U.S., adults average 2 hours and 15 minutes watching connected TV each day, surpassing desktop viewership and closing in on mobile (which is nearly 4 hours a day on average). Brands and advertisers can access Rembrand's AI through a software-as-a-service model to send virtual objects to studios and publishers for preparation. Major studios and networks can use the AI through an application programming interface and video editing software plugins.
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This startup just raised $23M with AI-powered product placement
Rembrand, a Silicon Valley-based innovator in In-Scene Media and Virtual Product Placement technology, has raised $23 million in a Series A financing round led by super{set}, with participation from The Trade Desk, Naver D2SF, and existing investors including BOLD, the corporate venture capital fund of L'Oréal, Greycroft, among others. The funding represents significant support for Rembrand's growth, particularly in expanding its services beyond social media to include professional Connected TV (CTV) content and other video formats. The company plans to leverage this capital to enhance its AI-powered technology, which integrates brands non-intrusively into video content, offering advertisers increased brand awareness and engagement. Omar Tawakol, Rembrand's CEO and co-founder, expressed enthusiasm about the investment, stating, "We are thrilled to have the backing of such a distinguished group of investors. This funding will enable us to accelerate our growth, expand our team, and continue to innovate our technology platform to meet the evolving needs of advertisers and content owners across the broader video marketplace." Founded in 2022, Rembrand has so far secured a total of $31 million in funding. The company's unique technology analyzes video frames of content creators' videos on platforms such as YouTube and TikTok, utilizing generative AI to identify optimal opportunities for product placements. This method marks a departure from traditional approaches, automating a process that is often labor and time-intensive. Tom Chavez, Co-Founder and General Partner at super{set}, commented on the innovation, saying, "Rembrand is at the forefront of a major shift utilizing AI in advertising, and we are excited to partner with them as they scale their business and transform the way brands connect with consumers." The company is also launching its AI Studio to offer all creators access to these capabilities, further expanding engagement with its platform. Rembrand's business model includes charging marketers on a cost-per-impression basis for product placements, while creators are compensated based on impressions. The company also plans to introduce licensing options for brands, allowing them to use Rembrand's technology within their existing creator partnerships. The startup has worked with a variety of brands, including those under PepsiCo, L'Oréal, Amazon, and Lenovo.
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Rembrand, an AI media company, raises $23 million in Series A funding to expand its AI-powered virtual product placement technology from social media to connected TV formats, revolutionizing advertising in video content.
Rembrand, a Silicon Valley-based startup specializing in AI-powered virtual product placement, has successfully raised $23 million in a Series A funding round 1. The investment, led by super{set} with participation from The Trade Desk, Naver D2SF, and existing investors including BOLD (L'Oréal's corporate venture capital arm) and Greycroft, brings Rembrand's total funding to $31 million since its founding in 2022 2.
Rembrand's technology utilizes artificial intelligence to seamlessly integrate virtual objects into video content, creating natural-looking product placements. The AI analyzes video frames to identify optimal opportunities for product insertion, automating a process that has traditionally been labor-intensive and time-consuming 2. This innovative approach allows for post-production integration, enabling content creators to monetize their entire content library, including previously created videos 1.
With this new funding, Rembrand aims to expand its services beyond social media platforms like YouTube, LinkedIn, TikTok, and Instagram, venturing into the lucrative connected TV (CTV) market 1. The CTV advertising sector represents a significant opportunity, with a market value of $30 billion and U.S. adults averaging 2 hours and 15 minutes of daily CTV viewing 1.
Rembrand's AI-powered product placement offers several advantages:
The company's case studies have shown impressive results, including a five times higher video completion rate, eight times more screen time, and 27% more brand awareness compared to standard video ads 1.
Rembrand operates on a cost-per-impression model for marketers, while compensating creators based on impressions generated. The company is also introducing licensing options for brands to use their technology within existing creator partnerships 2. Rembrand has already collaborated with major brands under PepsiCo, L'Oréal, Amazon, and Lenovo 2.
As part of its growth strategy, Rembrand is launching an AI Studio to provide all creators access to its capabilities, further expanding engagement with its platform 2. The company plans to use the new funding to enhance its AI-powered technology and expand its team to meet the evolving needs of advertisers and content owners across the broader video marketplace 2.
Omar Tawakol, Rembrand's CEO and co-founder, expressed enthusiasm about the investment, stating, "This funding will enable us to accelerate our growth, expand our team, and continue to innovate our technology platform to meet the evolving needs of advertisers and content owners across the broader video marketplace." 2
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