Shoppable Video Ads: The Next Step Forward for ECommerce
Mins Read
March 18, 2021

Until recently, the video advertising industry has overlooked the potential of eCommerce marketing other than just brand recognition. The eCommerce industry is worth over $4 trillion, so why hasn’t the video advertising industry grabbed their piece of the pie?

Why Are Shoppable Video Ads Key to ECommerce Success?

 The answer is, they are trying to! Traditional video ads online and elsewhere, like television ads, are thought to simply inform the target market and hope that the consumer will seek out the product: brand awareness. That’s not the entire case. The very nature of most video streaming services lends itself to the number one way to 1, 2 or 3X your ROI: instant purchases. Think With Google states that 68% of YouTube viewer’s use the platform to help make purchase decisions. Therefore, the user is already primed for shopping. Enter Shoppable video ads - the next revelation in video marketing.

Why Are Shoppable Video Ads Better than In-Stream?

YouTube typically plays “in-stream” ads before, during and after the consumer’s selected content. Oftentimes, the ad doesn’t relate to content. The ad is related to the user’s previous browsing habits or website visits, leaving the user to feel targeted, but not taken care of. With contextual, shoppable video ads the user is presented with the opportunity to learn more (and obviously purchase) when they see the product versus being retargeted with pre-roll or mid-roll on unrelated content either.

There’s another huge problem with traditional video advertising practices (mid-roll and pre-roll)  – consumers can opt to see fewer ads if they pay for premium streaming services. To combat the rising popularity of the pay-for-less-interruption model, the newer incarnations of shoppable video advertisement are almost shockingly sophisticated. Advertisers incorporate interactive overlay elements that offer an immersive shopping experience and are unskippable, while cleverly reducing bids for the consumer’s attention. These ads usually include the product, the cost and where to buy. This is typically done through manual tagging of your video during the upload process making it a more personalized experience for potential shoppers.

What is the Future of Shoppable Ads?

The percentage of shoppable ad use is set to grow to 40%, making it one of the fastest growing future-tools for marketers and advertisers. Research also states that at least 40% of YouTube viewers have directly purchased an item or service due to a personalised advert, which makes shoppable video ads a valid path for improving the conversion of video marketing. Social Media Today & Bloomberg stated that YouTube aims to make all videos shoppable with the availability of product tagging within the video upload process. Other video streaming platforms are jumping on board as well - for example, TikTok’s partnership with Shopify to implement shoppable video ads.

With 2020 events, the shift to a storeless shopping experience has sped up 5X. IAB reports a 500% increase to web-only economy from brick and mortar stores. IAB also speculates that video stream generated sales will double to $120 billion worldwide in 2021.

Soon, most video streaming platforms will offer Shoppable ads as a staple to the video experience for brands. Advertising technology is only going to become more integrated and experiential. You’ll need to jump on early to optimize as new features and new integrations continue to be developed.

How Can CatapultX Help with Your Shoppable Ad Strategy?

CatapultX raises the shoppable bar even further with a unique format tailored to the consumer experience: On-Stream advertising. On-Stream Video Advertising uses AI technology to deliver relevant, contextual ad messaging based on the consumer’s interest – without delaying or interrupting content. This allows advertisers to reach consumers when they are primed and engaged with a visually related product or service. The intuitive and pinpoint-targeted advertising appears as an overlay on the video and becomes part of the content, ensuring that consumers will actually have meaningful messaging exposure purchase instead of skipping past advertising content. We can offer shoppable ads across platforms for advertisers and marketers.

If you’re ready to step into the world of on-stream shoppable video ads, contact us now. Happy shopping!

ai in advertising white paper cover page by catapultx

The Future of AI In Advertising

AI is evolving from a nice-to-have capability, to an everyday staple, especially in advertising. Learn everything you need to know about the future of AI as it applies to advertising.

In this FREE 15-page whitepaper, you'll learn:
- What AI is
- How AI applies to advertising
- Top uses of AI
- How contextual ads work
- How AI will impact your strategies tomorrow
- New  forms of AI advertising

Get The White Paper Now

Get In Touch With CatapultX

What best describes you?
What can we help you with?
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Start your journey to a viewer-first experience.
Schedule a demo
Start your journey to a viewer-first experience.
Schedule a demo