A report from the Interactive Advertising Bureau, which hosted the NewFronts, found that surveyed marketers ranked shoppable ads fourth for delivering on upper-funnel KPIs, and first on delivering lower-funnel KPIs, based on the percentage who rated the format in the highest percentile for connected TV ad formats. However, on the panel “Bringing the Store to the Screen,” MikMak Founder and CEO Rachel Tipograph said the effectiveness of shoppable ads hinges on the quality and instructiveness of the ad’s creative.
“Commerce is still new in [the CTV] environment,” said Tipograph. “The way that we’re being served up is if there was a QR code on the ad or you had a call to action to text a code where you then get a link—that's where we could be enabling commerce. And what we've noticed is that it still takes around 30 seconds for the consumer to be like, ‘Oh, I can actually shop this. Let me go get my phone.’”
She went on to explain that recent pushes toward a cookie-less internet have made the effectiveness of traditional, targeted digital advertising less effective, creating a necessity for brands to showcase products directly to consumers.
“The CMO’s role is no longer just brand affinity, it's also sales,” said Tipograph. “Because technology is enabling essentially all media to be attributable, the CFO at the CPG company wants to know how every media impression is driving dollars at places like Amazon, Target and Walmart.”
While shoppable ads are still in early phases, and their effectiveness is still being tested, the numerous announcements this week suggest enthusiasm from brands to create a direct line from product to viewer. Viewers’ willingness to learn new methods of shopping, ranging from the simplicity of a click to Roku’s Roku Pay requirement, remains to be seen.
TV Upfronts and Newfronts 2022 calendar