Shoppable ads on OTT platforms - A win-win proposition

Gen Z is now glued to OTT and its engaging web-series content, even the new movies are now being streamed within weeks of its theatrical release.

OTT has redefined the way, entertainment is now consumed digitally.

Advertisers run where the eye-balls are present

Brands and OTT platforms have now launched shoppable ads on their platforms which on a click take you to the checkout page of the product that you want to buy without the need to go on a web browser or mobile app to make a purchase.

Welcome to the world of Shoppable TV.

 Prime video entry into shoppable TV

Amazon’s Prime TV has jumped onto the bandwagon of providing shoppable ads on its streaming platform.

Shoppable video ads will be part of Amazon’s masterstroke strategy to get brands already selling products on Amazon to advertise on Prime Video.

Thus increasing the brand’s visibility to 80 million subscribers or Prime and providing the convenience of shopping directly from the OTT platform.

A recent survey of 1,000 smart TV owners from Samsung Ads and video technology platform Kerv Interactive found that

a)    more than a quarter of respondents shop online or on a mobile device while watching TV, and

b)   28% browse for an item after seeing it on TV.

c)    Of the respondents, 55% recalled seeing a shoppable ad and 50% have interacted with a shoppable ad.

For the OTT platform, shoppable ads offer new revenue streams

a)     Money from ads that could be played based on the area, watching preferences of the viewers, and different ad sets that could be played simultaneously based on the content preferences of the viewers.

b)     Revenue from selling the products from the e-commerce site.

c)     Revenue from the higher subscription fees charged from the subscribers who do not want to see the ads between their web series.

These additional revenue streams would help OTT platforms produce more engaging content for their subscribers, thus increasing ad revenue from advertisers.

Amazon, the third-largest digital ad seller behind only Google and Meta, could allow marketers to target ads based on variables like shopping history and location.

However, the company will face heavy competition for streaming ads from Netflix, and Roku which connects Shopify e-commerce sites through their actionable Roku ads.(the preferred platform for small merchants selling products through the Shopify platform).

OTT vs Movie theatre, click here to read

Summary-

Exciting times for the advertising convergence of OTT and e-commerce are all coming together to form an ecosystem.

If you are a business owner operating in the beauty/fragrance genre and want to grow your business or need a retail expert to help you achieve your “Vision to Reality” framework then feel free to schedule a discovery listening call over a #coffeechat.