Ads on social media and search engines have become so streamlined that sometimes, it’s hard to tell where organic search results end and sponsored links begin. You could be scrolling your Facebook or Instagram profiles, and eight out of 10 times, you won’t be able to tell ads apart from other things you see there. One of these ads that we see more often than we care to notice is shoppable ads.
What are shoppable ads?
Shoppable ads are a relatively new type of advertising that combines traditional advertising with e-commerce. These ads allow consumers to directly purchase products featured in the ad without leaving the platform or website they’re on. For example, if you’re scrolling Instagram, and see a dress that you love, you can purchase it while not having to be redirected to an external browser with shoppable ads.
The popularity of shoppable ads has skyrocketed in recent years, particularly among social media users. Platforms like Instagram, Facebook, TikTok, and Pinterest have heavily integrated shoppable features, enabling millions of users to interact with them and purchase products directly from these platforms daily.
Major online retailers such as Amazon and Walmart have also added shoppable ads to enhance their user experience and boost sales. And it’s not only them. You’ll also find Google and YouTube shoppable ads. The bottom line is that you can’t escape them.
In a recent survey, 27% of respondents aged between 16 and 34 in the UK and the US said they purchased a product by clicking on shoppable posts on social media. The number for the same group of respondents who engaged with shoppable ads on search engines was 38%.
Accordiing to Allied Marketing Research, the social and shoppable commerce market size was valued at $784 billion in 2022 and is projected to reach $9,864.6 billion by 2032, driven in part by shoppable ads that allow seamless purchasing.
What is shoppable media?
The various types of content – photos, videos, and stories – that are used to create shoppable ads are called shoppable media. Each type of content has its own unique characteristics, and different considerations go into creating a shoppable ad with them to ensure effectiveness in driving engagement and sales.
Shoppable images
There is no better content type for shoppable ads than high-quality and visually appealing images that accurately represent the product. For shoppable ads, high-resolution images that highlight the product work better because they provide a direct visual representation of the product and can be easily tagged with purchase links.
Shoppable images streamline the process by enabling users to view product details and make purchases with minimal effort. These static images provide a clean and non-distracting way to showcase products, especially for fashion, beauty, or home decor brands.
While engagement rates are typically lower than video, users interacting with shoppable images often have higher purchase intent, as the content is usually more straightforward.
Shoppable videos
The engagement on shoppable videos is through the roof because of the overall trend of video getting more reach on the platforms than static images. A December 2023 report said over 2.5 billion active users engage with Reels every month, and videos receive 67% more engagement than static posts on Instagram.
Video shopping ads are a no-brainer when it comes to promoting your products. They are engaging and informative and showcase the product’s features, benefits, or usage. Videos can offer a more immersive experience, demonstrating the product’s value and addressing potential customer questions. They can also boost engagement and time spent on the ad.
Then there are also Livestreams – a genuine and interactive experience that further cements users’ search intent by answering their questions. These ads give a feeling of physical shopping in the virtual world. That’s why live commerce is blowing, unlike anything in the world of e-commerce.
Livestreams allow for real-time interaction with viewers; hence, they are a tool to boost engagement via Q&A sessions, live demos, or showcasing limited-time offers during the stream. Shoppable live streams generate a sense of exclusivity and urgency, leading to 10 times higher purchase intent than pre-recorded content. The live interaction allows users to engage directly with the brand and helps them feel more connected to the brand or influencer, increasing the likelihood of making spontaneous purchases.
Shoppable stories
Stories are everywhere. They are on WhatsApp, Instagram, Facebook, Snapchat, and even TikTok. They are temporary, usually lasting 24 hours, so they are a perfect fit for your product that needs to create an instant buzz. Here, you can cash in on users’ FOMO and give an attention-grabbing offer like a ‘flash 50% percent sale or free delivery’, etc., to really hook the shoppers.
Shoppable stories typically see high engagement, especially for younger demographics on platforms like Instagram. The swipe-up feature with a clear call-to-action button also makes it easy for users to directly access the product page.
Key features of shoppable ads
Everything is shoppable content these days. As a business owner, you just need to have the art of selling it. Shoppable ads offer several unique advantages over traditional ad formats on social media and search engines. By enabling direct purchasing within the ad itself, they streamline the customer journey and create a more immersive and engaging shopping experience.
Below are the key benefits businesses can reap from using shoppable ads and a detailed comparison of how they outperform other ad forms:
Streamlined purchase process
The biggest utility of shoppable ads is that they have exponentially cut the time between the first click on the ad and checkout. They have reduced the steps between product discovery and purchase. Instead of requiring users to click on an ad, visit a website, search for a product, add it to the cart, and then check out, shoppable ads allow customers to view product details and make purchases directly from the ad.
Traditional ads often take users to an external website, which customers don’t like as sometimes the redirection isn’t very convenient. But by eliminating these extra steps, shoppable ads significantly reduce drop-off rates, increasing conversion rates and providing a smoother customer experience.
Higher engagement rates
Shoppable ads are interactive and visually appealing, which leads to higher engagement. Users can explore different products within the ad, click on product tags for more information, and purchase without leaving the social media platform.
Compared to static image or text-based ads, shoppable ads offer a more immersive experience. Traditional ads, especially text-heavy search engine ads, rely on users’ intent to click through and make additional efforts to explore the brand.
Improved conversion rates
Shoppable ads result in higher conversion rates because they shorten the customer journey. Users can make impulse purchases without navigating multiple web pages or completing a tedious checkout process.
The longer the path to purchase, the more likely users are to abandon their carts. This is the problem with traditional display or search ads. Shoppable ads minimize this by providing users with a one-stop shop experience, keeping them engaged from the moment they see the product to the final purchase step.
Better personalization and targeting
Shoppable ads leverage the advanced targeting capabilities of social media platforms. These platforms have vast data on user behavior, preferences, and purchase history, enabling highly personalized ads that are relevant to individual users.
Search engine ads often rely on keyword-based targeting, which is effective but less personalized than social media’s behavioral data. For example, Facebook and Instagram shop ads can target users based on their browsing habits, previous purchases, and interests, resulting in more personalized and relevant ads that drive higher engagement and sales.
Better ROI and lower cost per acquisition
Shoppable ads tend to have a better ROI and lower cost per acquisition because they directly target users who are more likely to convert. The direct shopping experience ensures that ad spend is more efficiently allocated toward conversions rather than just clicks.
Traditional ads, especially those on search engines, often focus on driving traffic rather than ensuring conversion. This can result in higher bounce rates, with users leaving the website before purchasing. Shoppable ads, by contrast, lead to immediate buying opportunities, driving down acquisition costs and improving ROI.
Seamless integration with social media platforms
Shoppable ads integrate seamlessly into the user experience on platforms like Instagram, TikTok, and Pinterest. They appear natively in users’ feeds or stories, making them feel more like part of the platform than a disruptive ad.
Traditional ads (like banners or pop-ups) can feel intrusive and interrupt the user experience, leading to ad fatigue or even ad blindness. Shoppable ads are less disruptive because they are integrated into the content feed and provide a useful function—helping users shop without leaving the app.
Optimized for mobile shopping
More internet traffic is coming from mobile these days than from any other device. Shoppable ads are designed with exactly these users in mind. Given that most e-commerce transactions now happen on mobile devices, shoppable ads can capitalize on this by providing a mobile-first, frictionless experience.
Traditional ads often require users to visit an external website, which may not be optimized for mobile devices, leading to poor user experience. Shoppable ads, on the other hand, allow users to complete purchases directly on the platform, offering a seamless mobile shopping journey.
Influencer and UGC (User-Generated Content)
Influencer and user-generated content are also shoppable content examples. These ads can be seamlessly integrated into influencer campaigns or UGC, making the ads feel more authentic and trustworthy. Influencers and UGC play a huge role in driving sales, especially for younger audiences.
Traditional ads often feel impersonal and don’t have the social proof that influencer-backed content or UGC provides. Shoppable ads enable businesses to partner with influencers or leverage UGC, blending authentic content with direct shopping opportunities, making them more effective in building trust and driving sales.
Promotes quick buying decisions
Shoppable ads tap into impulse buying by creating an immediate purchase opportunity as users browse through social media. When users are engaged with a visually appealing post or video, the temptation to make a quick purchase is high.
Traditional ads, especially search engine ads, are often intent-driven, meaning users actively search for something. Shoppable ads capture those who aren’t necessarily looking to buy but are swayed by compelling content, encouraging spontaneous purchases.
Conclusion
Shoppable ads have simplified the entire online sales funnel so effortlessly that we can literally buy our favorite item in two to three clicks. However, when creating a shoppable ad, it is really important to consider three things: the platform, the type of content, and curation. The first decision is obviously based on your audience research. The second decision is based on the product you are selling. If it is a complicated product that might need a demonstration, then live commerce is the way to go. The third part is really the icing on the cake, and it would decide how your ads appear in front of your users. Make sure to use high-quality images and HD video and tag your products with shoppable links so that the entire buying process is as smooth as possible for your users.
