As social media platforms like TikTok and Instagram Reels keep consumers in a near-constant shopping mindset, retailers must master the art of engaging—not alienating—audiences through commerce video ads, according to industry experts at the Interactive Advertising Bureau (IAB).
Commerce Video: A Growing but Risky Channel
The IAB’s Unconnected Commerce report, released two weeks ago during its Connected Commerce Summit, reveals that commerce video—a blend of entertainment and direct sales pitches—is the fastest-growing ad channel. It’s projected to reach $63 billion in 2025, outpacing the broader media market by nearly 80%.
However, Chris Bruderle, IAB’s VP of Industry Insights, warns that poorly executed ads risk driving customers away. While shoppable videos and connected TV (CTV) ads dominate grocery retail strategies, 70% of consumers report monthly annoyance with such content, and one-third feel irritated weekly. Worse, two-thirds of annoyed consumers retaliate by switching brands, complaining on social media, or unsubscribing from services.
Five Keys to Effective Commerce Video
Bruderle outlined critical strategies for retailers to optimize commerce video:
Guide the Purchase Journey: Ads should cater to all stages, from awareness to checkout, not just “shopping mode” moments.
Leverage Always-On Platforms: TikTok and Instagram Reels keep users in a purchase-ready state 24/7.
Prioritize Informative Content: Consumers prefer longer ads with QR codes, store locators, or website links.
Avoid Repetition Overload: Excessive frequency tops consumer irritations; A/B testing is essential.
Collaborate with Creators: Only 40% of brands partner with influencers, despite their proven impact.
TikTok’s Seamless Shopping Vision
At the summit, Adolfo Fernandez, TikTok’s Global Director of Product Strategy, highlighted that 61% of users who engage with TikTok Shop make in-app purchases. The platform aims to streamline shopping by empowering creators to curate product “bundles” for retailers.
CTV’s Data-Driven Potential—and Pitfalls
Evan Hovorka, VP of Product at Albertsons Media Collective, noted friction in CTV adoption, citing misaligned budgets between agencies and retailers. “CTV offers data-driven targeting, but retail media must deliver assets CPGs [consumer packaged goods] value,” he said.
The Bottom Line
While commerce video’s growth is undeniable, retailers must balance innovation with consumer tolerance. As Bruderle put it: “Do brands’ strategies match how consumers actually want to be engaged?”
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