YouTube Tests New Shoppable Video Ads Tools
Amid a pandemic that created havoc around the world that resulted in prolonged store closures. This has led brands to advertise their products online to drive sales as more people are online now. To make things easier for them, YouTube has introduced new direct response solutions that make video ads more shoppable, drive conversion, and automate content delivery across the platform.
The idea is to make video ads the new ‘storefront’ for the brands as an increasing number of brands are using video ads that connect them directly to customers. YouTube Ads director and product manager Nicky Rettke wrote in the blog post, “Last year, the number of active advertisers using TrueView for action grew over 260 percent.”
Increase in sales with Shoppable TrueView for action
In the new test, the eCommerce advertisers can show their products in their TrueView for action ads. When the user clicks on the expansion arrow, browsable product imagery appears below the video.
Image Credit: Search Engine Land
The advertisers are required to sync their Google Merchant Center feed to the video ads, expand their call-to-action button, and drive traffic to a specific product page. However, Facebook recently released “Shops” creates on platform storefronts but keep the users and transactions within Facebook.
Retailer Aerie used Shoppable TrueView for action to increase awareness and sales for its 2020 Spring campaign and saw a 25% higher return on ad spend than the previous year and nine times more conversions compared to their traditional media mix. Rettke said in the post that 70% of people bought a brand after seeing it on YouTube.
Video Campaigns drive conversions
The next tool announced is ‘Video campaigns’, a cost-effective way to drive conversions, boost web traffic, or generate leads across the platform. It automatically brings video ads to the YouTube home feed, watch pages, and Google video partners in one campaign as well as include any future inventory that becomes available like the What to Watch Next feed.
Image Credit: Google
YouTube tested the video ad campaign with a start-up Mos to help students raise funds for college to avoid debts. Rettke said in the blog post that it saw 30% more purchases at one-third of the cost of its previous ad spend.
Lead Generation to a Video campaign
The third tool is adding lead forms to a brand’s video ad campaign. Lead forms help advertisers reduce costs and obtain potential costumers. It appears below the video ad and asks the viewers to fill the form while the ad is running.
Image Credit: Google
Automobile giant Jeep tested this approach with its Korea branch and saw a 13-times increase in completed leads at an 84% lower cost per lead as well as generated more leads.
Finally, Google has included YouTube in the Google Ads attribution report that will help advertisers identify the maximum impact across YouTube, Search, and Shopping campaigns.
Shoppable Ads, a new focus for social media platforms
Shoppable ads also considered as direct-response ads have become a major focus of all social media platforms in the pandemic when ad sales went down. Facebook introduced shoppable ads on its platform and Instagram. Snapchat has in-app shopping whereas buy groceries without leaving Pinterest. Shoppable ads are also seen on Tik Tok.
DR ads have helped Facebook, Instagram, Snapchat to maintain profits, and CPM’s. As per Adexchanger reports, YouTube sales VP Adam Stewart said,
“YouTube storefront isn’t a traditional DR advertising product.YouTube has a bustling DR business, because it’s popular for app-install campaigns, especially with mobile gaming companies.”
Direct response advertising features will be the focus of YouTube’s NewFronts presentation to advertisers. As a part of YouTube’s pitch, Stewart said the storefront isn’t meant to rival Facebook-Instagram or Snapchat commerce offerings but its natural counterpart is television.
Snapchat’s Automated Advertising ‘Dynamic Ads’ Is What Global Brands Need Today!
- Snapchat announced a new advertising product called Dynamic Ads. It brings automated customization to ads and is designed to make it easy for brands to set up their e-commerce business on Snapchat.
- Snap first introduced Dynamic Ads in 2019 to e-commerce retailers in the U.S and began testing the ad unit last October.
- The stock was down 1% after the company launched Dynamic Ads in the U.K, Europe, Australia, and the Middle East after being offered only in the U.S.
- Google and Facebook both offer brands Dynamic Ads.
Snapchat Dynamic Ads or Dynamic Product Ads (DPAs) allow a brand to automatically create ads in real-time based on their own product catalogs which may contain hundreds of items. This means if a price or availability changes, ads will be updated automatically with less human intervention. Dynamic ads will make selling products easier for retailers and brands and can serve Snapchat’s 229 million daily active users based on their interests. Snap offers five templates to advertisers to showcase their products in a way that they look native.
Image Credit: Search Engine Journal
Here is the example of the template after a product is populated:
Image Credit: Search Engine Journal
Brands like Adidas, FarFetch, and Topshop were amongst the first brands to test Snapchat Dynamic Product Ads and all reported positive sales results from showcasing their products and services through customized ad formats.
Image Credit: CNBC
In the wake of the COVID-19 pandemic, Adidas has further accelerated its digital business and eCommerce is their key focus in 2020. Adidas test in Europe elicited positive feedback:
“We’re excited to beta test Snapchat’s Dynamic Ads in the U.K., Germany, France, and the Netherlands. Within weeks we saw a 52% growth in ROAS (return on advertising spend) and we have subsequently grown our investment.”
“The launch of DPAs allows us a route to reach our target Gen Z and Millennial audiences with relevant product creative throughout the consumer journey.”
– Rob Seidu, Sr. Director of Media Activation, Europe
Image Credit: MediaTel
FarFetch chief marketing officer Gareth Jones said that there is a shift in consumer interaction with eCommerce as consumers are increasingly shopping on their mobile phones during the COVID-19 lockdown which is expected to continue. Jones added that Snapchat Dynamic Ads have transformed the brand’s activity across the entire sales funnel.
“We lent heavily into DPAs during the testing period and we have seen significant success that has translated into high-quality customers and ultimately transactions. We plan to continue to build on our relationship with Snapchat and we see them as an always-on partner.”
Topshop was the first brand to do a beta test and it achieved four times the UK benchmarks for ROAS within two weeks. According to Topshop,
“DPAs have allowed Topshop to reach Snapchatters with high-quality, and relevant ads throughout the consumer journey, and based on such strong results, the activity will be scaled and launched into further markets over the coming weeks.”
Implications on Business
Lockdown has forced many businesses to shift their focus to eCommerce and keep up with consumer demands. According to Interactive Media in Retail Group, online sales reached a 10-year high in April, marking a year-over-year increase of 23.8%.
Snap reported revenue of $462 million in the first quarter, up more than 44% over the first quarter of 2019 and ad revenue grew as they relied on big-spending large advertisers.
According to Ed Couchman, general manager of Snapchat U.K,
“The coronavirus has accelerated the need for businesses to look at their digital sales channels and encouraged them to be more innovative in how they do that.”
“Since we opened up the beta testing I was impressed at the number of businesses who wanted to get involved – far above what we expected – which really shows the appetite for brands to get on board with e-commerce.”
“We are seeing strong results from advertisers in multiple sectors from high street clothing stores to food delivery who have been testing the product.”
