CRAFTSMAN+ Blog

TRANSFORMING ENGAGEMENT WITH SHOPPABLE ADS

Written by Craftsman+ | 07/2/24

As mobile platforms become increasingly central to our daily lives, marketers are tapping into innovative ways to not only capture attention but also drive direct conversions right at the moment of engagement. This trend is turning viewers into shoppers by embedding the power of commerce directly into the mobile experience with shoppable ads. 

In this blog, learn about shoppable ads — what they are and how they’re fueling brands’ ability to align with their consumers' increasingly interactive and on-demand lifestyles.

What are Shoppable Ads?

Shoppable ads are a type of interactive ad unit that allows consumers to purchase products directly from the ad unit itself, without having to leave the platform or website they are on.

Along with showcasing product images and videos, they also feature tags and buttons that display pricing, descriptions and the ability to add items to a cart and checkout instantly from the ad unit itself.

Common shoppable ad formats include carousel ads featuring multiple product images, video ads, live stream shopping, and augmented reality (AR) experiences.

Across social networks and connected TV channels, shoppable media formats are becoming increasingly available. According to eMarketer, more than 100 million people in the US will be shoppable media buyers next year. This represents over 45% of digital buyers. That percentage is set to grow steadily through to 2027, especially as shoppable ad formats spread to emerging channels like CTV

Major retail media networks like Amazon, Walmart, and Target are expected to drive the adoption of shoppable ads, potentially disrupting traditional ecommerce. Innovations like Disney's ShopX solution and Roku's shoppable ads are revolutionizing how viewers interact with content, turning passive watching into active shopping experiences. What’s more, a majority of ad agency professionals (57%) believe shoppable video content will be the next frontier for retail media.

 

Source: eMarketer

Benefits of Shoppable Ads

From streamlined checkout to dynamic customization, shoppable ads are transforming the advertising landscape by enhancing how users interact with marketing content on their digital devices. 

  • Streamlined Purchase Journey: Shoppable ads significantly simplify the buying process by integrating the ability to discover, learn, and purchase all within a single ad experience. This reduces the steps a consumer must take from interest to purchase, shrinking the marketing funnel and boosting conversion rates by reducing friction and drop-offs.
  • Enhanced Engagement: By employing interactive elements such as shoppable videos, augmented reality (AR) try-ons, and product carousels, these ads offer a more immersive experience that captivates users. This not only increases the time spent with the ad but also enhances the likelihood of conversion due to higher engagement levels.
  • Mobile Shopping Made Easy: With more people turning to their mobile devices for shopping, shoppable ads let consumers make purchases directly within the mobile ad. This convenience drives higher conversion rates.
  • Data-Driven Personalization: Fueled by rich first-party data, shoppable ads can deliver personalized product recommendations that resonate more effectively with specific users. This tailored approach significantly enhances the likelihood of engagement by aligning ad content with user preferences and behaviors.
  • Accurate Measurement and Attribution: One of the standout benefits of shoppable ads is their ability to provide closed-loop attribution. By enabling direct purchases, these ads allow for precise tracking of sales outcomes and return on ad spend (ROAS). This level of measurement is crucial for advertisers aiming to optimize their campaigns for the best possible performance results.

Key Trends in Shoppable Ads in 2024

Here's a closer look at the most significant trends shaping the future of shoppable ads in 2024.

Expansion to Streaming TV Platforms 

Shoppable ads are making their way onto streaming platforms like Amazon's Prime Video, which recently introduced innovative formats such as shoppable carousel ads, brand trivia ads, and pause ads. These new features allow viewers to interact with product catalogs, engage with brand-related trivia for rewards, and add items to their Amazon cart directly during their viewing experience.

Adoption by Major Retailers 

Big-name retailers are embracing shoppable video ads to enhance their advertising strategies. Walmart, for instance, has expanded into shoppable CTV ads through its acquisition of Vizio, while Amazon is pushing the envelope with video shelf units and in-app video ads that come with shoppable capabilities.

Incorporation of QR Codes and AR 

QR codes are becoming a staple in video ads, offering viewers the ability to scan and shop instantly. Augmented reality (AR) is also gaining traction, providing virtual try-ons and product visualizations that enrich the consumer's shopping journey and decision-making process.

Leveraging First-Party Customer Data 

With an emphasis on personalization, retailers are using their first-party data more effectively to tailor shoppable ad experiences. This approach ensures that the products and offers presented are aligned with the individual's preferences and previous shopping behaviors.

Focus on Attribution and ROAS 

As the impact of shoppable ads grows, so does the need for precise measurement. Advertisers are seeking improved attribution methods to track return on ad spend (ROAS) and the direct sales impact of these ad units, ensuring that their investment in shoppable ads is both accountable and fruitful.

Takeaways 

Shoppable ads are revolutionizing the way brands engage with consumers by combining convenience, personalization, and immersive experiences into a seamless shopping journey. 

  • Reduced Friction: Shoppable ads streamline the path from discovery to purchase, enhancing user experience and increasing conversion rates.
  • Enhanced Engagement: Interactive elements like AR try-ons and live shopping sessions keep users engaged, improving the effectiveness of advertisements.
  • Convenience and Accessibility: Direct purchases from within an ad make mobile shopping easier and more appealing, particularly on platforms where users are already engaged.
  • Data-Driven Targeting: Leveraging first-party data allows for more relevant and personalized ad experiences, boosting user engagement and satisfaction.
  • Precise Measurement: Shoppable ads provide closed-loop attribution, enabling advertisers to measure and optimize based on direct sales impact and ROAS.

At CRAFTSMAN+, we're excited about the advancements in this space and are gearing up to push the boundaries even further with our own innovations in interactive shoppable ads. Stay tuned for more. 

Ready to elevate your brand with cutting-edge shoppable ad solutions? Connect with CRAFTSMAN+ today to discover how our innovative tools can transform your digital ads into engaging shopping experiences that drive performance and growth.