Are shoppable ads finally ready for prime time?
At 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 pitching the promise of shoppable ads.
“How cool would it be if you could buy dresses right off the red carpet?” wondered Pam Drucker Mann, Condé Nast’s global chief revenue officer and president, during the publisher’s NewFront presentation in early May, according to Advertising Age.
Shoppable television ads — called t-commerce (television commerce), back in the day — were first hyped in the nineties when network executives promoted the idea of couch potatoes clicking a “buy” button on their remote control to purchase the sweater worn by Friends’ star Jennifer Aniston. Since then, experiments with apps, QR codes, website links, chatbots and screen placement to drive TV-watching impulse buys have taken place to little progress.
One reason shoppable ads have been receiving renewed interest is that more content is being watched online. The commercials that run alongside Hulu’s movies and shows online all include an advertising link.
A second is the rapid expansion of connected-TVs and streaming platforms. Hub Entertainment research shows 76 percent of TV households in the U.S. now own a smart TV, up from 70 percent a year ago.
According to Fierce Video, Julian Mintz, Roku’s national brand team lead, during a NewFront presentation said the platform has further learned that streamers are five times more likely to click their remotes than scan a QR code. He said, “Phones distract us from TV, remotes bring us in.”
IAB’s “2021 Video Ad Spend and 2022 Outlook” report found Connected TV (CTV) ad spend increased 57 percent in 2021 to $15.2 billion and is expected to grow 39 percent in 2022. CTV was found to enable buyers to leverage many types of data not available within linear TV buys, including first-party brand data (65 percent), location data (61 percent) and shopping data (50 percent).
Eric John, VP, IAB Media Center, said in a press release, “The amount of dollars currently allocated to CTV is not proportionate to the amount of viewer time spent with the channel.”
- Why Shoppable Ads Took Center Stage At The Newfronts – Advertising Age
- Digital Video Ad Spend Increased 49% in 2021 and Expected to Reach Nearly $50 Billion in 2022, According to IAB’s 2021 Video Ad Spend and 2022 Outlook Report – IAB
- 2022 Connected Home – Hub Entertainment Research
- New Fox app enables television commerce – Los Angeles Times
- Roku Unveils a Better TV Advertising Experience at First In-Person NewFront – Roku
- AMC Networks Launches “Teal,” A Comprehensive Product Suite To Help Advertisers Leverage The Company’s Content, Platforms And Advanced Technology – AMC Networks
- Condé Nast announces largest video slate ever with 250 new and returning digital series globally – Condé Nast
- NBCUniversal Unveils Fifth Annual Slate of Commercial Innovations, Driving New, Local-to-global, Immersive Experiences for Consumers and Marketers – NBCUniversal
- Roku tees up Microsoft partnership, new shoppable TV ad experiences – Fierce Video
DISCUSSION QUESTIONS: Do shoppable ads, whether delivered online or on smart TVs, now hold enough appeal to convert viewers into buyers? Have you noticed any shoppable ads that hold potential?