For many brands, video is a cornerstone of their digital marketing strategy. But what is the customer experience regarding this resource used by advertisers? The latest report from the Interactive Advertising Bureau (IAB), titled “Unconnected Commerce: The Disconnect Between Brands and Consumers in Digital Video Shopping,” explores the significant gap between brands’ marketing strategies and consumers’ expectations in the context of Commerce Video.
This document reveals valuable insights into how advertisers use video to capture consumer attention but also highlights areas of disconnect that could lead to negative consequences if not addressed effectively.
What is Commerce Video, and why is it important?
Commerce Video has taken center stage in the digital marketing landscape. It refers to video ads specifically designed to drive consumer actions, such as generating leads or prompting a purchase. These videos include clear calls to action (CTA) like “buy now” or “subscribe.”
“With digital video —Connected TV (CTV), Social Video, and Online Video (OLV)— dominating consumers’ digital media consumption, brands are leveraging Commerce Video as a powerful way to engage with them at scale. The term Commerce Video is not yet a part of the common language of consumers or advertisers; however, it is growing among both groups,” the report states.
The IAB report highlights that 70% of digital advertisers are already using Commerce Video, and nearly all of them plan to increase their investment in this form of advertising in the coming years. This reflects how commerce videos have transitioned from being solely a brand awareness tool to a key element in the conversion and sales process.
The collapse of the shopping funnel
One of the most notable findings of the study is how consumers are merging the product discovery phase with the purchase phase into a single step.
Some 64% of consumers believe commerce videos are helpful when they are just starting to consider a purchase, demonstrating that these materials are effective not only for closing a sale but also for sparking interest in products.
This phenomenon reflects a shift in the traditional shopping funnel, where consumers previously moved slowly from the discovery phase to consideration and finally to purchase.
According to the IAB, the process is now much more dynamic and rapid, posing new challenges for brands seeking to capture attention in a content-saturated environment.
Disconnect between advertisers and consumers
Despite the growing adoption of Commerce Video, the IAB report reveals a disconnect between brands and consumers. While 96% of advertisers believe their commerce video strategies are effective, 7 out of 10 consumers report feeling annoyed by these ads at least once a month. In fact, one-third of consumers experience frustration with these ads at least once a week.
This frustration can have consequences. Consumers annoyed by Commerce Video ads may turn to competitors, leave negative comments on social media, or even cancel subscriptions, resulting in direct sales losses for brands.
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Duration, Frequency, and Context: Three critical factors
The report also reveals three key areas where brands can improve their approach to commerce video: ad duration, frequency, and the context in which they are presented.
- Duration: While advertisers prefer ads under 15 seconds for brevity and agility, consumers prefer ads lasting between 30 and 60 seconds. This allows them to better process product information and make more informed purchasing decisions.
- Frequency: Over 70% of consumers find video ads more repetitive than other types of advertising, which generates frustration. This indicates that brands should be more strategic in the frequency of these ads, avoiding overexposure that could lead to ad fatigue.
- Context: Consumers prefer to see commerce videos when they are relaxing at home, while advertisers do not always consider this factor. Brands should adjust their strategy to present ads at moments when consumers are more receptive to making purchases.
Another underutilized area by advertisers is the power of content creators and influencers. Only 40% of advertisers leverage these creators’ videos in their commerce video campaigns, even though consumers consider them one of the most influential sources when making purchase decisions.
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A strategy adjustment
The IAB report highlights opportunities to optimize video strategies to better align with consumer expectations.
The key for brands lies in finding a balance between ad duration, frequency, and context, as well as leveraging content from influential creators to resonate more deeply with their audience.
| Current advertiser approach | Opportunity for advertisers |
|---|---|
| Advertisers primarily use Commerce Video for bottom-of-funnel tactics, with 69% citing that it does not play a role in inspiring discovery. | Consumers prefer brand discovery to be combined with purchasing capabilities. Some 64% of consumers agree that Commerce Video ads are helpful when they are beginning to think about a purchase. |
| Nearly all (93%) advertisers believe Commerce Video campaigns only affect consumers when they are in “shopping mode.” | Some 70% of consumers prefer to see Commerce Video ads when they are relaxing at home. |
| Advertisers tend to favor shorter Commerce Video ads, with the most commonly used length being under 15 seconds. | When making purchase decisions, consumers prefer Commerce Video ads lasting between 30 and 60 seconds, giving them enough time to digest detailed product information, educate themselves, and make a purchase decision. |
| Some 91% of advertisers use retargeting strategies to repeatedly reach consumers with messages through Commerce Video ads. | Over 70% of consumers find Commerce Video ads more repetitive than other types of ads, citing this as their main frustration. Advertisers should align with optimal message frequency goals in CTV and online video strategies. |
| Advertisers underestimate the influence of creator videos, with only 40% utilizing creator or influencer videos in their Commerce Video campaigns. | Consumers say creator videos are one of the most influential sources for them when shopping. |
