IAB: Video Commerce Ads Closing Gap Between Discovery, Purchase

• by Laurie Sullivan  @lauriesullivan, 3 hours ago

Three-quarters of consumers feel commerce in video ads is more relevant to their purchase process than other ad types, as more look for a seamless experience to combine product discovery with purchases.

Some 95% of advertisers using video rely on this ad type, Commerce Video, more often than not to drive purchase.

The insights from a new study released Tuesday by the Interactive Advertising Bureau, conducted in partnership with research consultancy Alter Agents, defines this new ad type in a study titled Unconnected Commerce: the Disconnect between Brands and Consumers in Digital Video Shopping.

Results from the study -- fielded between June 28 and July 21, 2024 -- combine responses from 1,000 consumers and 300 marketers. Through quantitative, qualitative and ethnographic research, the analysis looks to define the media, provide details the rise of commerce in videos, and highlight the ad format as an emerging seamless experience as the purchase funnel continues to change.

Consumers have preferences as to what they want to see in Commerce Video ads when shopping. Some 58% want to see details on costs and promotions, while 58% want to see clear product demos and details, 44% want to see visual and emotional appeal, and 35% want to see comparisons of different products. There are other considerations, but those are the top four.

Length of the video also matters, but consumers do not always agree with advertisers. Forty-eight percent of advertisers favor Commerce Video ads of less than 15 seconds in length. Consumers have their own preferences, with 67% preferring 45 seconds, followed by 65% who prefer 30-second ads. Fifty-seven percent prefer 60-second ads, while 41% prefer 15-second ads, and 31% prefer less than 15-second ads.

Nearly 70% of digital video advertisers participating in the study leverage commerce video -- which the report defines as digital video ads designed to drive action, especially purchases. Nearly all who participated in the study plan to increase their commerce video spend in 2025.

Although it forecasts success, there seems to be a bit of a disconnect when analyzing effective messages in the media. Advertisers can be overly confident with their messages.

While 96% of advertisers think their messaging is on target to drive purchases, 70% of consumers report feeling annoyed or negative on a monthly basis with commerce video ads, while one-third feel that way at least weekly.

Poor commerce video ad experiences can trigger a backlash for advertisers -- one of the major challenges in this media, per the report. When they are annoyed by commerce video ads, two-thirds of consumers take actions such as switching to competitors, complaining on social media, or unsubscribing from services or newsletters.