Over the last few months, the global mobile marketing ecosystem has seen a huge shift towards making the consumer journey from intent to purchase simpler and more seamless. We unveiled our new commerce solution and it was followed by a slew of announcements from companies such as Google, Facebook and Pinterest talking about consumers now being able to initiate a purchase with a BUY NOW button integrated within a mobile ad.
What has led to this change? The answer lies in the simple fact that when it comes to consuming mobile content, consumers are today exhibiting a snacking pattern and therefore their stickiness is reducing.
This also applies to their journey from intent to purchase. Even if relevant ads are shown to consumers, the intent to make a purchase might diminish if the process seems tedious and lengthy, where they have to exit their current user experience and be redirected to another website to complete the purchase.
Using different mobile ad formats, the ecosystem is today able to successfully engage consumers with relevant ads that get them interested in the product or service. By integrating the ability to buy this product or service within the ad, the intent to purchase journey becomes more seamless and immersive. However, what would truly take this immersive experience to the next level is video ads.
Video is one of the most popular types of content on mobile. In fact, a recent Cisco VNI estimate suggests that by the end of 2014, video traffic made up for 55% of the global mobile data traffic. The on-the-go, personal nature of smartphones has made them very popular among consumers for video consumption.
Consumers are also showing similar levels of receptivity to video ads, with estimates suggesting that 60% of all mobile users having watched more than three fourth of the video ad's runtime length. Mobile video ads results almost 6 times increase in Click-Through Rate (CTR). With video ads, marketers can pack in a lot more messaging, take it across in a short span and be entertaining and engaging while doing so.
On the other hand, findings from the CBRE Asia Pacific Consumer Survey 2014 estimate that 64% of Indian consumers shop via their smartphones, suggesting that consumers are steadily becoming comfortable shopping on mobile. By adding the ability to buy from within a video ad on mobile, marketers can offer an intent to purchase experience that is much more immersive and seamless as consumers can now buy the product/service right after watching the video, without exiting the ad experience.
Videos ads with a built-in ability to purchase, present a huge opportunity for marketers to offer consumers an engaging intent to purchase experience. It would interesting to see how the ecosystem capitalizes on this opportunity in the days to come.