top of page

Shoppable CTV Ads: Are Buyers Ready for T-Commerce?

Interactive, shoppable ads provide brands with valuable insights into consumer behavior, preferences, and purchasing patterns.


mom and two kids cheering on couch

If predictions hold, 2024 will be the year CTV video ad spend in the US breaks $30 Billion, and you can be certain that spend is coming from advertising budgets of all shapes and sizes.


Sophisticated advertisers are looking at ways of measuring sales conversions from those CTV investments, not just awareness-related metrics like impressions, reach, and frequency. As with e-commerce and omnichannel marketing, advertisers must bridge the gap between the traditional TV ad model and the point of purchase for the modern shopper.


Shoppable CTV ads may be the solution.


What is shoppable CTV?

Shoppable Connected TV, sometimes referred to as T-Commerce (short for television commerce), is the newest evolution in television advertising, incorporating interactive or transactional features directly into television platforms. In other words, consumers can purchase products directly from a TV ad without ever leaving the couch.


What is an example of T-Commerce?

The actual functions can vary:

  • It could be as simple as a call-to-action (CTA) with a text message discount code, or

  • a TV ad could display a QR code to scan and checkout via mobile phone; or

  • a voice-activated command to a smart speaker; or

  • even check out right from the TV


Are shoppable CTV ads effective?

Sources say...yes! In a recent study by LG, 51% of the 1200 CTV users surveyed said they "wish they could shop online using their TV."


Many TV watchers today have their phones closer at hand than their TV remotes!


This strategy capitalizes upon the increasing trend of consumers turning to digital platforms for both entertainment and shopping (we see you, TikTok Shop). With T-commerce, consumers can seamlessly explore and purchase products with a simple click while watching their favorite shows. This frictionless experience eliminates traditional barriers between content consumption and commerce, providing consumers with a more simple and enjoyable path-to-purchase journey.


Technological advancements such as smart TVs, interactive content overlays, and seamless payment gateways, have played a pivotal role in making T-commerce possible, and all the major TV players want a piece of the pie. Disney, NBCUniversal, Samsung, Paramount, and others have already rolled out shoppable ad features to advertisers.


Last year, Walmart and Roku launched a shoppable TV ad experience, allowing viewers to purchase products in the Roku app. And Walmart revealed that "57% of Roku streamers have paused an ad to shop the product online," a promising sign for advertisers searching for ways to drive immediate action from their TV ads.


Shoppable CTV enables data-driven personalization

The rise of Shoppable CTV is reshaping traditional advertising models, offering brands the opportunity to engage with their audience in a more personalized and targeted way.


T-Commerce relies on data analytics to provide a personalized and curated shopping experience. As consumers engage with shoppable content, their preferences and behaviors are tracked, allowing for targeted product recommendations.


This data-driven personalization benefits consumers by presenting them with relevant offerings and empowers advertisers to optimize their inventory and media strategies going forward.

This shift from conventional TV commercials to shoppable content:

  • benefits advertisers in measuring and optimizing campaigns,

  • enhances the viewing experience for consumers, and

  • creates new revenue streams for content creators and streaming platforms


A common concern, however, is that with the ease and convenience of shoppable TV comes the responsibility of understanding data sharing and privacy. As consumers engage with shoppable content, they need to be mindful of the information they share and the permissions granted to platforms.


With the expansion of CTV ad formats and interactive capabilities, paired with premium streaming video content and audiences hungry to buy, we predict this space will transform in the next three to five years. Our clients who are already testing into this will be ahead of the game.


 

This piece originally appeared in our weekly Paid Media Insights newsletter. For more tips, research, and analysis; subscribe for free here.

bottom of page