Roku is planning for a future of “shoppable” TV ads that will make it simple for viewers to buy products and services instantly, from the comfort of their sofas, while they’re sitting watching their favorite shows, movies or live sports coverage.
Shoppable TV ads will enable viewers to do things like order a pizza as they’re binge-watching shows on Netflix, or purchase clothing that’s advertised in a show’s sponsored pre-roll.
Roku’s director of international ad sales, Mike Shaw, wrote about the company’s vision for shoppable TV ads in a recent post for Retail Tech Innovation Hub, a site that’s aimed at marketing and advertising professionals. In his post, he explains that TV commerce presents a golden opportunity for retailers. Rather than relying on passive advertising, such as showing a pizza ad and a phone number and hoping viewers will call and order a pizza, shoppable ads will enable viewers to do it via a few simple clicks on their remote control.
These kinds of shoppable ads could be especially interesting for smaller brands, Shaw said. He explains that they have the potential to reduce the sales funnel down to “just one click”, with viewer’s TV remotes becoming a kind of “magic wand” that’s able to summon burger deliveries and enable a clothes shopping spree in a more effortless way.
Shaw explained that TV viewers will be able to “click and buy products while enjoying an evening show, or order food and snacks when watching a sports game – it’s all part of a complementary, branched out buyer’s journey.”
The shoppable ad format sounds very appealing for advertisers, who will be able to leverage Roku’s data on user’s viewing habits to target the most receptive audiences – like those who have a history of ordering pizzas. Viewers who have linked a payment method to Roku would be able to authorize transactions with a couple of clicks, making it super convenient, and therefore more likely that they’ll go ahead and do so.
Not surprisingly, Roku is not alone in seeing the potential of shoppable ads. Earlier this year, LG Electronics’ advertising chief Tony Marlow told ad industry publication The Drum that his company is thinking of doing something similar in the webOS operating platform.
Marlow pointed out that some video streaming services and broadcasters have already begun experimenting with the idea. For instance, Paramount is testing shoppable ads down under in Australia, while ITV and Channel 4 are doing it in the U.K. The difference is that those companies are displaying QR codes for viewers to scan and pay with their smartphones. Roku wants to do away with the need for a device entirely, and make it possible to purchase using only a remote control.
"QR code enabled ads are just the beginning", Marlow said. “We are only just beginning to see what shoppable ads can bring to viewers."
