INSUBCONTINENT EXCLUSIVE:
In a world where ad rates are declining for traditional broadcast media, the corporations responsible for making the fictions that millions
devour daily need to find a new business model.Subscription services are on the rise — with every major broadcaster launching an on-demand
service — and so are ad-supported video streaming services to replace the traditional networks.But there’s another Holy Grail of the
advertising industry, long thought to be too technologically difficult to achieve, that may finally be within reach
It’s the on-demand product placement of branded goods in a video, and it’s the technology that Ryff has been developing since it was
founded in early 2018.Product placement is an increasingly big business in the U.S., raking in some $11.44 billion in 2019, according to
data collected by Statista
That figure is up from $4.75 billion in 2012
The same report indicated that roughly 49% of Americans took action after seeing product placement in media.The effectiveness of product
placement has even been proven by researchers from Indiana University and Emory University
They found that “prominent product placement embedded in television programming does have a net positive impact on online conversations
and web traffic for the brand.”And while streaming services enjoy the dollars their subscribers are throwing at them, they’re also
looking at ways to diversify their revenue streams
Netflix and Hulu are both expanding their product marketing divisions and analysts like those from Forrester Research predict that product
placement will be a huge moneymaker for the company as traditional ad rates decline.There are companies that handle product placement
Startups like Branded Entertainment Network, which works with brands and producers to place real brands into contextually relevant scenes in
movies and television, and Mirriad, which adds branded billboards to scenes, are working to bring more money to platforms and producers.Ryff
takes the technology to the next level, using computer vision, machine learning and rendering technologies to identify objects in a scene
and replace them with branded products that can be tailored based on customer data.“The infusion of SVOD/streaming platforms into the
market, combined with platforms like Netflix that are unsuccessfully trying to grow their subscriber base will force those same platforms to
explore and embrace alternative revenue streams,” said Marlon Nichols, managing general partner at MaC Venture Capital, and a new director
“In addition, consumers on paid platforms do not want their content consumption interrupted by ads
As such, product placement will be an important growth channel and Ryff’s new marketplace and unique technology set it up to be the
unequivocal growth market leader.” To continue its technology development and ramp up sales and marketing, the company has raised $5
According to Crunchbase, Ryff had previously raised $3.6 million from investors, including a subsidiary of the Mahindra Group and
The new financing came from Valor Siren Ventures, MaC Venture Capital, Moneta Ventures and Vulcan Capital.“Ryff’s offering is well-timed
with the rapidly increasing demand for solutions that extend the reach of a brand’s content and drive business results,” said Uday
Ghare, vice president for media and entertainment at Tech Mahindra, in a statement at the time of the company’s investment
“We believe the market will continue to see a shift of brand dollars to both content marketing and programmatic advertising as brands
increase their reliance on content-centric programs and look to scale those efforts.”Ryff’s ads can be tailored to the viewer’s taste,
the platform on which video is being distributed, the geography of the broadcast, the date and time of the broadcast and a broader
demographic profile, according to the company
Basically it’s like AdWords for videos.In a blog post writing about the rationale behind his investment firm’s capital commitment to the
company, Marlon Nichols of MaC Ventures wrote:Imagine a future where an IP owner can maximize the value of its content by putting it on the
Ryff marketplace, where that content will be mapped for dozens if not hundreds of product placement opportunities and be layered with
restrictions that comply with creative needs
Those opportunities will be ranked and priced by their effectiveness to drive marketing goals for brands
Brands can bid on in-video placement opportunities that fit their marketing strategies and budgets
3D brand assets can be uploaded and inserted dynamically into content right before the moment of video delivery.Ryff’s first disclosed
partnership is with the “reality” television producer Endemol Shine. “Ryff successfully takes the concept of product placement, the
only advertising format that can’t be skipped by the viewer, and delivers a scalable and adaptable advertising solution that can be
applied to any content, at any time and in any market,” said Roy Taylor, founder and CEO of Ryff, in a statement
“The result benefits all — content free from annoying distractions, audience-specific brand placement and delivering a new means towards
monetizing video assets.”
