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Are Shoppable Ads Finally Ready for Prime Time? – Retail Wire

May 18, 2022

At the International Advertising Bureau’s (IAB) NewFronts showcase for digital marketers, Condé Nast, AMC Networks, Roku, YouTube, NBCUniversal and Amazon’s Twitch platform were among those showcasing the promise of shoppable ads.

“How cool would it be if you could buy dresses straight off the red carpet?” Pam Druckermann, global chief revenue officer and president of Condé Nast, wondered aloud during the publisher’s NewFront presentation in early May advertising age.

Shoppable television advertising — then called t-commerce — was first hyped in the ’90s when network executives promoted the idea of ​​couch potatoes clicking a ‘buy’ button on their remote control to buy the sweater worn by friends’ – StarsJennifer Aniston. Since then, experiments with apps, QR codes, website links, chatbots, and screen placement to encourage impulse TV purchases have made little headway.

One reason for renewed interest in shoppable ads is that more content is being viewed online. The commercials that run online alongside Hulu’s movies and shows all contain a promotional link.

A second is the rapid spread of connected TVs and streaming platforms. Research from Hub Entertainment shows that 76 percent of TV homes in the US now own a smart TV, up from 70 percent a year ago.

Corresponding Intense video, Julian Mintz, head of Roku’s national brand team, said during a NewFront presentation that the platform further learned that streamers are five times more likely to click their remotes than to scan a QR code. He said: “Phones distract us from TV, remote controls get us inside.”

IAB’s 2021 Video Ad Spend and 2022 Outlook report found that connected TV (CTV) ad spend grew 57 percent to $15.2 billion in 2021 and is expected to grow 39 percent in 2022. It found that CTV allows buyers to take advantage of many types of data not available in linear TV purchases, including first-party brand data (65 percent), location data (61 percent), and purchase data (50 percent).

Eric John, VP, IAB Media Center said in a press release“The dollar amount currently allocated to CTV is disproportionate to the time viewers are spending with the channel.”

DISCUSSION QUESTIONS: Are shoppable ads, whether online or on smart TVs, now attractive enough to convert viewers into buyers? Have you noticed shoppable ads that have potential?

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“I think we’re on the cusp of something big with shoppable ads, but as with so many things, the key to unlocking their full potential will be the shopping experience.”

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