Live shopping is coming to the red carpet

When viewers tune in to the 2024 MTV VMAs on Wednesday night, they’ll be able to shop the outfits and designer looks they’re seeing in real time, as legacy media companies look for new ways to monetize content.

As part of a new partnership between Paramount Global — the parent company of cable TV network MTV — and shoppable advertising company Shopsense AI, viewers will be able to shop the outfits they’re seeing on screen using the startup’s new AI-powered lens, which will launch at the start of the awards show, Shopsense told CNBC.

The software will allow viewers to snap photos of their favorite looks as they come up on screen and then browse similar options suggested by Shopsense’s product recognition algorithm, the company said.

The partnership and potential future deals could boost both retailers taking a hit as consumers pull back discretionary spending, and legacy media companies that have tried to maintain profits in a challenging landscape. Each time a person buys something through the new feature, or in some cases even when they just click on an item, some revenue will go back to Paramount, according to Shopsense.

“Everyone’s got their phone or their tablet in their hand while they’re watching TV,” Bryan Quinn, a former Amazon executive and Shopsense’s co-founder and president, told CNBC in an interview. “This allows folks, in a non-disruptive way … to go through that shopping journey without pausing the content.” 

Paramount’s partnership with Shopsense was a key component of its Upfront presentation in May, a time when media companies make their annual pitch to advertisers. The agreement comes as legacy media companies look to generate new revenue streams and find different ways to monetize their content.

While media companies have relied on ad revenue for some time, it’s become more important as they look to make their streaming businesses profitable. Paramount — which recently agreed to a merger with Skydance Media — will air the VMAs on both MTV and its streaming platform, Paramount+. 

Advertisers and media companies have been leaning into generative AI tools, such as shoppable advertising. Disney announced a similar partnership earlier this year with Gateway Shop, and launched a beta program for its first native streaming shoppable ad format.

Across the ad industry, the growth of AI is “revolutionizing how brands reach audiences,” said Natalie Bastian, global chief marketing officer at Teads.

“The integration of AI is driving measurable outcomes, maximizing media effectiveness and improving return on ad spend across the industry,” Bastian said.

Since most celebrities attending the VMAs on Wednesday will likely be wearing custom, couture items, the Shopsense software will suggest so-called dupes at a range of price points. It can recognize more than 1 billion items that are sold off the rack, according to Shopsense.

“For impulse buys, the immediacy of this format is particularly effective, as it…