Report Defines 'Commerce Video' and Unveils
Solutions for Ideal Commerce Video Ad Strategies
NEW
YORK, Sept. 17, 2024 /PRNewswire/ -- In a
landmark study, "Unconnected Commerce: the Disconnect between
Brands and Consumers in Digital Video Shopping," the Interactive
Advertising Bureau (IAB) analyzes the rise of Commerce Video, as it
found 70% of digital video advertisers are already using Commerce
Video and nearly all of them plan to spend more in the future.
The study, conducted in partnership with research consultancy
Alter Agents, aims to both define Commerce Video and highlight the
growing importance of this ad format in a climate where the
purchasing funnel is radically changing as consumers condense
product discovery and purchasing into one seamless experience.
"As the purchase journey collapses, digital video is no longer
just an awareness and consideration tool, it is now a critical
strategy in driving business outcomes like sales, store/site
visits, leads, downloads, etc.," said David
Cohen, CEO, IAB. "This report found that while brands are
embracing Commerce Video, there is room to improve the experience
based on consumer needs and preferences. Commerce Video works -
this study reveals how to unlock its full potential."
Defining Commerce Video
With digital video––Connected
TV (CTV), Social Video, and Online Video (OLV)––dominating
consumers' digital media consumption, brands are capitalizing on
Commerce Video as a powerful way to engage with them at scale. The
term Commerce Video is not part of consumers' or advertisers'
vernacular, yet it is surging amongst both groups.
In fact, nearly all (95%) Commerce Video advertisers use these
ads more often now than other media to drive purchases.
Additionally, three-quarters of consumers feel that the ads are
more relevant to their purchase process than other ad types, and
that Commerce Video helps them make better purchasing decisions
overall.
According to IAB, Commerce Video refers to digital video ads
that are designed to drive action from an intended audience. These
videos include a clear call-to-action that drives the consumer into
the purchasing journey, either generating leads or acquiring new
customers. Examples of qualifying calls-to-action include "follow,"
"sign up," "shop now," and "purchase."
"Nearly every advertiser we surveyed plans to increase their
spend on Commerce Video in 2025, so it's critical that we, as an
industry, have a unified definition for what this medium does and
how it should be used," added Chris
Bruderle, Vice President, Industry Insights & Content
Strategy, IAB. "While extremely effective, if used incorrectly,
Commerce Media can be detrimental to brand loyalty and ultimately
sales. Plainly said, Commerce Video is not a blunt instrument.
There are nuances that brands need to take into consideration."
Misalignment on Commerce Video between Consumers and
Advertisers
While brands integrate Commerce Video into their
media strategies to drive engagement and purchase outcomes, there
is often a misalignment between how consumers prefer to shop using
video and how advertisers create and deliver these ads.
According to the study, advertisers are overconfident when it
comes to deploying Commerce Video campaigns. Nearly all advertisers
(96%) feel their messaging strategies are effective at driving
purchases. However, 7-in-10 consumers report feeling annoyed or
negative monthly or more often with Commerce Video ads, and
one-third at least weekly. In fact, these poor experiences can lead
to negative consumer reactions such as social media backlash,
switching to competitors, and unsubscribing from services,
resulting in lost sales.
The alignment between the consumer experience and Commerce Video
campaign activation is paramount. Advertisers have an opportunity
to better align on these strategies, including refining their
messaging, campaign timing, delivery throughout the purchasing
journey, and more:
Current Advertiser
Approach
|
Advertiser
Opportunity
|
Advertisers primarily
use Commerce Video for lower funnel tactics, with 69% citing that
it doesn't play a role in discovery inspiration.
|
Consumers prefer brand discovery to
be combined with shoppability. 64% of
consumers agree that Commerce Video ads are helpful when they're
starting to think about a purchase.
|
Nearly all (93%) of
advertisers think Commerce Video campaigns only affect consumers
when they are in a "shopping mood."
|
However, 70% of
consumers prefer to see Commerce Video ads when they are relaxing
at home.
|
Advertisers tend to
lean towards shorter Commerce Video ads, with the most used length
being less than 15 seconds.
|
When making purchase
decisions, consumers prefer Commerce Video ad lengths between 30
and 60 seconds, which gives them the proper time to digest the
detailed product information, educate themselves, and make a
purchase.
|
91% of advertisers use
retargeting strategies to repeatedly reach consumers with messaging
through Commerce Video ads.
|
Over 70% of consumers
find Commerce Video ads more repetitive than other ad types, citing
this as their top frustration. Advertisers should align on goals
for optimal messaging frequency across CTV and online video
strategies.
|
Advertisers undervalue
the influence of creator videos, with only 40% tapping into
creator/influencer videos for their Commerce Video
campaigns.
|
Consumers say creator
videos are one of the most influential sources for them when
shopping.
|
"While many marketers believe their Commerce Video ad strategies
are effective, consumer sentiment would indicate that there is
significant room for improvement. There is a delicate balance that
advertisers must walk when it comes to campaign targeting, timing,
and delivery to achieve optimal outcomes. If advertisers adjust
their go-to-market approach as the study indicates, the future is
bright for Commerce Video," Cohen concluded.
The full "Unconnected Commerce: the Disconnect between Brands
and Consumers in Digital Video Shopping" is available here.
Methodology
To create the report, IAB
partnered with Alter Agents to conduct a comprehensive study
of over 1,000 consumers and 300 marketers combining quantitative,
qualitative, and ethnographic research to generate these
results.
About IAB
The Interactive Advertising Bureau empowers
the media and marketing industries to thrive in the digital
economy. Its membership comprises more than 700 leading media
companies, brands, agencies, and the technology firms responsible
for selling, delivering, and optimizing digital ad marketing
campaigns. The trade group fields critical research on interactive
advertising, while also educating brands, agencies, and the wider
business community on the importance of digital marketing. In
affiliation with the IAB Tech Lab, IAB develops technical standards
and solutions. IAB is committed to professional development and
elevating the knowledge, skills, expertise, and diversity of the
workforce across the industry. Through the work of its public
policy office in Washington, D.C.,
the trade association advocates for its members and promotes the
value of the interactive advertising industry to legislators and
policymakers. Founded in 1996, IAB is headquartered in New York City.
About Alter Agents
Alter Agents is a full-service
strategic market research consultancy reimagining research in an
era of shifting decision making. Deep creative thinking and
innovative solutions help Alter Agents' clients understand consumer
needs. The Alter Agents team believes that research must adapt to
help brands overcome challenges brought by trends like shopper
promiscuity and brand narcissism. The company's immersive approach
and unique methodology has helped brands such Snapchat, YouTube,
Audacy, Viking Cruises, Pinterest, and more gain powerful,
actionable insights. More at www.alteragents.com.
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SOURCE Interactive Advertising Bureau (IAB)