Rembrand is an AI-powered product placement service that helps brands, agencies, and creators better monetize their content.
Rembrand’s team works by taking created content and using AI to embed products into the clip during the post-production process. Their “secret sauce” is their system that considers factors like light, shadow, reflectivity, motion, occlusion, and camera angle in order to make the digitally-inserted product look realistic
These kinds of ads can be preferable to pre-roll or interruptive ads because visitors cannot skip, fast-forward, or ignore them—they’re in the background or on the screen the entire time that people are watching the video.
Rembrand plans to make this technology available through an API, aiming for user-level targeting and added flexibility. The company's goal is to automate the various components of in-video product placement, from creation and distribution to targeting and measurement, without relying on cookies for user tracking.
Rembrand’s business model today resembles a two-sided network.
On one side are influencers and content creators, and on the other side are brands seeking exposure. Content creators can choose which brands they want to feature in their videos, allowing them control over the products that appear in their content.
Conversely, brands have the opportunity to select influencers whose audience aligns with their target market. Revenue is generated through a Cost Per Mille (CPM) pricing model, where creators earn 75% of the net revenue generated by each product placement. The company is currently in a growth phase and, as a result, offers a generous revenue-sharing model. While the exact split may change over time, Rembrand's leadership has indicated that the majority of revenue will continue to go to the content creators.
The second business model that Rembrand is working towards building into its product is geared toward larger publishers and the entertainment industry. Rembrand is working on licensing its product insertion technology as an API, enabling them to automate the process of integrating virtual products into their content.
In this scenario, Rembrand functions as a platform providing the technology, and the publisher or studio manages the direct relationship with the brand. Revenue is generated through licensing fees for the use of the technology.
Both models contribute to Rembrand's potential to generate revenue but offer varying levels of service and customer engagement. The marketplace model involves a more hands-on approach, where Rembrand actively curates lists of content creators based on a brand's creative brief and intended audience. The API model, by contrast, is more hands-off, enabling larger entities to leverage Rembrand's technology while maintaining direct relationships with brands.
This report is for information purposes only and is not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal trade recommendation to you.
Information and opinions presented in the sections of the report were obtained or derived from sources Sacra believes are reliable, but Sacra makes no representation as to their accuracy or completeness. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Information, opinions and estimates contained in this report reflect a determination at its original date of publication by Sacra and are subject to change without notice.
Sacra accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the extent that liability arises under specific statutes or regulations applicable to Sacra. Sacra may have issued, and may in the future issue, other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect different assumptions, views and analytical methods of the analysts who prepared them and Sacra is under no obligation to ensure that such other reports are brought to the attention of any recipient of this report.
All rights reserved. All material presented in this report, unless specifically indicated otherwise is under copyright to Sacra. Sacra reserves any and all intellectual property rights in the report. All trademarks, service marks and logos used in this report are trademarks or service marks or registered trademarks or service marks of Sacra. Any modification, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, or selling any report is strictly prohibited. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of Sacra. Any unauthorized duplication, redistribution or disclosure of this report will result in prosecution.