Artificial intelligence media company Rembrand has recently announced the completion of a $23 million Series A funding round, with plans to expand its business from social media to connected TV. This funding round was led by super{set}, with participation from The Trade Desk and Naver D2SF. Existing investors, including BOLD, the corporate venture arm of L’Oréal, and Greycroft, also joined this round.

Founded in 2022, Rembrand specializes in using AI technology to naturally integrate virtual objects into video content for brand marketing. This technology allows the addition of products in post-production without disrupting the storyline, enabling the sale of sponsorships after the content is created. This capability enables creators to monetize their entire content library, including previously produced videos.

Rembrand's software can identify objects and people in videos and add virtual objects that blend seamlessly with the scene. Initially targeting YouTube, the company later expanded to other social media platforms such as LinkedIn, TikTok, and Instagram.

With AI, creators have full control over the placement, monetization, and rendering of virtual products. Rembrand refers to its technology as "generative fusion AI," as it allows creators to switch placements when changing advertisers and brands while maintaining ownership of the integration.

Compared to traditional advertising, Rembrand believes that product placement is more subtle and less disruptive to the viewer experience than pre-roll or overlay ads. Additionally, traditional visual effects for product insertion can take weeks, whereas Rembrand's AI technology can insert virtual objects within hours, allowing for quick monetization and maintaining relevance.

For brands and advertisers, this technology offers significant benefits, including the ability to customize target audiences and increase product visibility. Case studies from Rembrand show that compared to traditional video ads, their product placement method results in a fivefold increase in video completion rates, eight times more screen time, and a 27% increase in brand awareness.

According to a LiveRamp report, the connected TV market is a major advertising channel worth $30 billion. Video ads delivered through internet-connected TV devices, such as streaming sticks, gaming consoles, and smart TVs, represent the market that Rembrand plans to tap into with its generative fusion technology. According to LiveRamp, the average U.S. adult spends 2 hours and 15 minutes per day watching connected TV, surpassing desktop viewing and approaching the average daily mobile viewing time of nearly 4 hours.

Brands and advertisers can access Rembrand's AI through a software-as-a-service (SaaS) model, sending virtual objects to studios and publishers for preparation. Large studios and networks can use the AI technology via application programming interfaces (APIs) and video editing software plugins.