Shoppable media is gaining momentum as brands look for ways to narrow the gap between discovery and purchase. Pinterest, NBCUniversal, Meta, and Yahoo all recently announced shoppable media updates.
Pinterest partnered with Amazon on shoppable ads that direct users to Amazon’s website to complete their purchase.
- The innovations are part of Pinterest’s goal to make every pin on its platform shoppable.
- Other shoppable features on Pinterest include collages, merchant catalogs, and search.
Pinterest is also exploring how AI can make the platform more shoppable, using the technology to connect “billions of interactions” from users to more relevant content.
Why we care: Pinterest’s shoppable ad revenue grew over 40% YoY, indicating a positive response to its initiatives, CEO Bill Ready said on the company’s Q1 earnings call. CFO Todd Morgenfeld took a cautious outlook for Q2 and beyond, saying the “ads market continues to be uncertain” amid a tough economy. This partnership may provide Pinterest the boost it needs to keep ad revenues climbing.
NBCUniversal introduced a new ad format for Peacock TV at NewFronts that enables viewers to buy products that appear on Peacock shows, per TechCrunch.
- The capability, powered by KERV Interactive, uses an algorithm to identify shoppable products on the TV screen. A QR code appears next to the item, which viewers can scan and use to purchase the item on the Peacock app.
- NBCUniversal viewers will soon be able to shop via TV remote.
This isn’t NBCUniversal’s first experiment with shoppable media. The company teamed up with Walmart last year on a holiday livestream shopping show where viewers could make purchases in real time.
Why we care: We forecast Peacock will generate $1.05 billion in ad revenues this year, lagging behind Hulu’s $4.15 billion. While we don’t think Peacock will catch up to Hulu any time soon, experimenting with shoppable media formats may help it close the gap.
Meta is updating its Shops ads to encourage consumers to buy directly from ads on Instagram and Facebook.
- Meta is introducing Shop ads to thousands of new businesses, making it easier for US businesses to set up a Shop with in-app checkout.
- The company will no longer support Shops without in-app checkout in several markets (though businesses can still use personalized ads and business messaging to reach customers).
- Meta is also adding new tools to its Shops feature, including ratings and reviews, buyer email opt-in, and dynamic product pages.
All of these updates have been moved under Meta’s Advantage portfolio, which houses the company’s other automation tools that eliminate the manual steps of ad creation and provide marketers with 150 creative combinations at once.
Why we care: Meta is beginning to rebound after Apple’s AppTrackingTransparency framework weighed on its ad revenues over the past couple of years. In its Q1 earnings, the company said ecommerce advertisers in China were a big driver of advertising spending. While this Shops update only applies to US businesses, we’d expect Meta to make some updates to its China-based offerings.
Yahoo partnered with Pear Commerce to bring shoppable consumer packaged goods (CPG) ads to its demand-side advertising platform (DSP).
- The Pear Connect offering enables shoppers to add products directly to a retailer’s commerce cart from a digital ad.
- Marketers can customize which products they want displayed and which retailers they want to display them while also leveraging machine learning to optimize audience targeting.
This is the latest expansion of Yahoo’s retail ad offerings; it announced a partnership with Lowe’s One Roof Media Network last year.
Why we care: The future of retail media is tied directly to grocery and CPG categories, according to our analyst Andrew Lipsman. Yahoo is smart to align itself with a CPG-adjacent partner. Retail media ad revenues will reach $45.38 billion this year and continue to grow by double digits through 2027.
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