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Revealing influencers in big ads and at events is anything but mainstream these days—but what if artificial intelligence allowed influencers to break into old-school product placement without having to shoot in person with brands?
Imagine more seamless product placement in movies and TV shows that are more story-driven and adaptable to different pieces of content, where brands are virtually embedded into products, backgrounds or signage in post-production. New AI-powered virtual product placement tools, including Mirriad, Ryff and Inshorts, can add fried chicken to a “Stranger Things” scene or edit in paint cans at Lizzo’s. music videos without the talent or creators actually representing these products on set. Brands from Hallmark to Univision we have been testing this method of product placement since 2020.
Thanks to these platforms, brands can now make product placement much more natural and scalable – and we hope this technology can bridge the gap in the world of product placement while increasing influencer content across channels. For example, Mirriad included its virtual product placement in the 2024 TV Upfronts and partnered with Cheetos to integrate its ghost pepper chips into “Ghostbusters: Frozen Empire” last year. Last year also the South Korean advertising company Inshorts applied its AI digital product placement for the drama “Maestra”.
So far, agencies remain divided about these new tools: Some see them as promising and curious about them because of their flexibility. Others remain cautious about the cost and other aspects of adopting the tools.
“The biggest opportunity here is the flexibility and quick turnaround it provides,” said Lindsey Lehmann, director of influencer and branded content at PMG.
On the one hand, marketers are already aware of the impact influencers can have on purchases — for example, nearly two-thirds of consumers have bought a product after being recommended online by an influencer, according to the creators of Grin — and perhaps virtual product placement could take that to the next level by , that you make influencer marketing accessible to all types of creators and brands.
That’s why product placement and influencer BENlabs (Branded Entertainment Network) is positioning itself strategically in this space, as opposed to presenting itself as an AI company like many of its competitors. Instead, BENlabs wants to focus on three core products: influencer marketing, product placement, and optimization tools—which makes sense, given that the company was formed in 2016 through acquisitions that combined influencer agency Plaid Social Labs and product placement agency Norm Marshall & Associates.
“What pleases us is that we think [virtual product placements for brands] can essentially create a … one plus one equals three dynamic,” said CEO Ted Sheffield. “The reality is that 10 years ago, traditional TV content and YouTube content might have felt like they were in completely different universes, and those things are coming together. … It’s obvious that people are consuming content across different media – so if you’re trying to reach that audience [across] product placement, influencer marketing makes a lot of sense.”
Earlier this month, BENlabs partnered with virtual product placement company Mirriad to create an in-content advertising offering. Virtual integration can be used across brand locations in streamingmovies, music videos and influencer marketing. Along with BENlabs’ access to approximately 15 million creators and brands such as Microsoft, GM and Frito-Lay, Mirriad also brings a network of suppliers including Univision, Vevo and Influential (now owned by Publicis).
However, AI and virtual product placement also face marketing adoption challenges. Currently, for example, some brands specifically prohibit AI-generated content in their contracts, said Chris Jacks, director of growth strategy at influencer agency HireInfluence. He didn’t specify which brands were excluding AI content, but said it was a general trend for some.
“As these tools become more popular, we expect greater indulgence with AI-based tools and services that enhance content,” said Jacks.
Currently, Jacks said, his agency does not receive requests or inquiries for product placement using artificial intelligence or virtual tools. Instead, HireInfluence focuses on using AI tools to add special effects and other visual elements to make content more appealing to creators.
“We’re in an exciting era of content creation because these types of special effects and content enhancement used to be reserved for high-budget productions or required a high degree of technical competence,” added Jacks.
Kelly Dye, vice president of influencer strategy at Acorn Influence, similarly noted the potential benefits of using AI to support influencer marketing and product placement, such as personalizing content (with audience data), reducing content creation costs, and producing evergreen content. Dye cited the example of a hypothetical Mars Wrigley ad that could be run in an influencer’s empty drawer to show candy, tailored to the viewer’s preferences and adjusted for seasonality.
However, Dye cautioned that whether these AI and product placement platforms become more mainstream in advertising will ultimately depend on the performance of content and the concerns of brands and creators about ethics or authenticity. Marketers need to avoid overly subtle placements, perhaps make these virtual placements public, and possibly consider the initial cost of implementing AI software. Some authors might also feel less ownership of their content because virtual placements are done after the fact.
On the other hand, some verticals that are more visually driven, such as fashion, beauty and home, might be more natural to these technologies and might be more tempted to experiment with them, PMG’s Lehmann said.
PMG clients are not yet implementing these AI product placement tools, but Lehmann indicated there is “growing interest” in how these tools can impact influencer partnerships. Lehmann expects this product placement space to grow significantly in 2025 as its combination with influencer programs can help bridge the gap between paid media and organic content.
“I see virtual product placement as a natural complement to our paid influencer amplification strategies as it creates another opportunity on the organic side by seamlessly integrating products into the creator world,” said Lehmann.