2022 marked the first year where the average CTV viewer started to experience high-profile, shoppable TV launches, starting with the Super Bowl and QR codes. In fact, 70% of adults remember seeing a shoppable TV ad at one point over the past year. In 2023, brands and advertisers are looking to leverage the growing trend of shoppable TV and use the emerging technology to integrate e-commerce functionality even more directly into the viewing experience.

With more and more people consuming video content, shoppable TV will become an increasingly popular tool for advertisers looking to drive conversions and engage with consumers.

Marketing Technology News: MarTech Interview with Cosmo Mariano, Chief Customer Officer at Zift Solutions

Increased Consumer Engagement

The interactive nature of shoppable TV that bridges e-commerce with video content creates an immediate and more engaged user base. It’s a concept that began on social media through influencers, and its benefits are shifting to more traditional channels.

In this case, consumers are building a connection with the characters from their favorite shows and movies, meaning they’re more likely to engage with the featured products and services that their favorite characters use on screen. This empowers brands with the ability to directly reach and monetize new audiences in new ways over time.

For example, when a consumer turns on Bravo to watch their favorite reality TV show, brands can use shoppable TV opportunities to advertise accessories, clothing and consumer packaged goods that characters use in the show. Most consumers have probably attempted a web search similar to “thing used by character in season 1 of show” and have realized the degree of difficulty in finding that product. They’re only as good as their search engine abilities.

The sheer convenience and availability of this engagement model will likely mean viewers will see this innovation as a positive.

Commonality of Click-to-Buy

Prior to the emergence of shoppable TV technology, content providers looking to capitalize on TV-based conversions focused mostly on lower-cost items and beneficial factors like free shipping. But now, a primary reason why shoppable ads on CTV are so successful is that the ads mimic the familiar behavior of online shopping, but are adapted to a new format and platform.

TV may be an even more effective area for e-commerce sales of some products, as inherent details like larger screens and relatively linear programming can showcase products more effectively. This is especially true if consumers see the product used within the natural setting of the show they’re watching.

But as interactive as the platform may be, it still cannot replicate the ease of single-click impulse buying that has driven e-commerce sales and customer experiences. Entering necessary personal information like names and addresses into a TV can be quite the tedious task.  However, SVOD platforms generally have the viewers’ credit card info they used to subscribe to the service in the first place. By connecting viewers’ purchasing info to the ecommerce service, SVOD platforms can create similar one-click shopping experiences.

Another solution that doesn’t rely on viewers having something already set up is QR codes, considering smartphone cameras can easily scan and access them. Eventually, streaming platforms will figure out which “last-mile” solution works best for their viewer base and needs.

Still, shoppable TV remains effective. Conversion rates when interacting with shoppable items via QR codes was 73% higher than the industry average.  After early tests for video action campaigns on TV screens, YouTube found that 90% of CTV conversions wouldn’t have been achieved on either desktop or mobile devices.

Improving Shoppable TV

Those numbers are encouraging because it means shoppable TV is just getting started and there are many opportunities for new and more effective consumer experiences. Broadly speaking, brands can expect to see the most rapid evolution in two areas: where and when the ad is presented, and ways the user can take action from the ad.

In terms of where and when, we’re already seeing the creativity that goes beyond the traditional 15-to-30-second video ad spots with virtual product placements. This is when CTV platforms and services offer object templates like “water bottle” or “billboard ad” where advertisers and brands can insert their own ad creative. The user experience is another area for innovation. For example, displaying ads or subtle overlays when users pause the program they’re watching. This is beneficial because viewers are more likely to have their phones in-hand.

The content discovery experience is a good place for ads too. By using native ads and sponsored content categories within channel displays, search fields, and other user experiences when browsing. Sponsored content could sit next to organic content. For example, specific show options like “top 10 cooking shows sponsored by KitchenAid” allow native ads to fit right within the channel, show and episode listings.

Ads can be valuable for viewers, if done right, and CTV is capable of making that a reality with the help of shoppable TV. As long as brands remain respectful of the user experience and find a solution that allows them to easily buy, shoppable ads and CTVs have a bright and profitable future ahead.

Marketing Technology News: From Hype to Reality: How to Successfully Implement ChatGPT in Your Marketing Campaign