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.

Major retail media networks like Amazon, Walmart, and Target are expected to drive the adoption of shoppable ads. 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. A majority of ad agency professionals (57%) believe shoppable video content will be the next frontier for retail media.

Benefits of Shoppable Ads

• Streamlined Purchase Journey: Shoppable ads simplify the buying process by integrating discovery and purchase into a single experience. This reduces friction and drop-offs, effectively shrinking the marketing funnel.

• Enhanced Engagement: By employing interactive elements like shoppable videos and AR try-ons, these ads offer an immersive experience that keeps users engaged longer.

• Mobile Shopping Made Easy: As consumers move toward mobile-first shopping, these ads allow for frictionless purchases directly within the mobile environment.

• Data-Driven Personalization: Using rich first-party data, brands can deliver personalized recommendations that align with specific user preferences and behaviors.

• Accurate Measurement and Attribution: By enabling direct purchases, these ads allow for precise tracking of sales outcomes and return on ad spend (ROAS) through closed-loop attribution.

Key Trends in Shoppable Ads in 2024

Expansion to Streaming TV Platforms

Shoppable ads are appearing on streaming platforms like Amazon's Prime Video, which introduced shoppable carousel ads and "pause ads." These features allow viewers to add items to their Amazon cart directly while watching content.

Adoption by Major Retailers

Walmart has expanded into shoppable CTV ads following its acquisition of Vizio, while Amazon continues to push video shelf units and in-app shoppable video ads.

Incorporation of QR Codes and AR

QR codes are now staples in video ads, allowing instant scanning to shop. Augmented reality (AR) provides virtual try-ons that enrich the decision-making process.

Leveraging First-Party Customer Data

Retailers are tailoring shoppable ad experiences by using their own data to ensure offers are aligned with previous shopping behaviors and individual preferences.

Takeaways

• Reduced Friction: Streamlines the path from discovery to purchase.

• Enhanced Engagement: Interactive elements keep users focused on the brand.

• Convenience: Makes mobile shopping a seamless part of the user's current activity.

• Precise Measurement: Provides clear data on the direct sales impact of ad spend.

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.

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