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Hyperconsumerism and digitalization have changed consumers’ shopping habits. Standing in long queues, carrying heavy shopping bags, or hunting for the best deals doesn’t make consumers happy anymore. With shopping apps on our smartphones, we can scroll through an endless list of products while sipping our coffee, compare prices with a few clicks, and have everything delivered to our doorstep within hours.
However, as people’s time and attention become more fragmented, traditional shopping apps lose appeal. Advertisers and marketers are turning to a new form of advertising- CTV or Connected TV Advertising for shopping apps. Let’s explore why CTV Advertising is the future of shopping apps and how it can revolutionize shopping experiences.
To understand the future of shopping apps, we must first look at why they have become popular in recent years.
Smartphones are everywhere, and with the rise of affordable data plans, they have become an integral part of our day-to-day lives. An average person in the USA spends 4 hours and 30 minutes on their mobile phone every day. When it comes to shopping, mobile phones’ convenience and accessibility have made them ideal platforms for shopping apps.
With just a few taps, customers can browse endless products, get personalized recommendations, and purchase anytime and anywhere. The mobile power has made shopping apps an attractive option for customers.
On-demand and personalized experiences have significantly influenced how people shop. Customers want to have control over their shopping experience and make purchases when it’s convenient for them.
Online shopping offers the flexibility of browsing through products and purchasing at any time, unlike traditional brick-and-mortar stores with limited operating hours. You may be driving, traveling, working, or relaxing at home; shopping apps allow you to buy whenever convenient.
This trend has also led to the rise of impulse purchases, where customers make purchases on a whim because the app is readily available on their phones.
The rise of shopping apps has also sparked a debate on which platform is better- mobile shopping apps or traditional brick-and-mortar stores.
Mobile shopping apps have made comparing prices and avail discounts and deals more accessible, eliminating the need to visit different stores physically. The convenience and time-saving aspects have made shopping apps popular for customers.
For example, instead of physically going to a store, trying on clothes, and standing in line to make a purchase, customers can browse multiple options using a shopping app within minutes. They can also read reviews from other customers and deliver their desired products straight to their doorstep without ever leaving the house.
Moreover, shopping apps also offer a seamless and personalized experience with features like saved payment information, suggested products based on browsing history, and targeted advertising. Customer satisfaction can lead to increased loyalty to the brand or app.
The pandemic has accelerated the rise of online shopping and mobile app usage. With lockdowns and restrictions, people have turned to shopping apps for everyday needs.
Contactless shopping, home delivery options, and the convenience of staying at home have made online shopping a preferred option for customers during the pandemic. Moreover, customers have turned to shopping apps for a safer shopping experience due to the fear of in-store shopping and crowded places.
20 to 30 % of businesses moved to online channels during the pandemic, and according to Census.gov, online sales surged by 43% in the first year of COVID-19. Safety concerns have also made customers switch to online shopping as a safer alternative.
Despite the rise of shopping apps, traditional brick-and-mortar stores continue to exist and thrive. However, they have also realized the importance of online presence and integration with shopping apps.
Many brick-and-mortar stores now offer click-and-collect services, where customers can purchase items through a shopping app and pick them up from a physical store. This provides the best of both worlds—the convenience of online shopping and the instant gratification of in-store pickup.
Moreover, some stores offer in-store browsing options through shopping apps, where customers can scan products and make purchases without ever standing in a checkout line.
CTV, or Connected TV, refers to any television that is connected to the internet and allows users to access streaming content through apps or websites. The devices used for CTV include Smart TVs, streaming devices such as Roku or Amazon Fire Stick, and gaming consoles. OTT (Over-the-Top) devices also fall under the category of CTV as they provide streaming services through internet-connected devices.
Shopping apps have expanded their reach to CTV as consumers shift towards watching content on streaming platforms such as Netflix and Hulu rather than traditional TV channels.
CTV advertising for shopping apps targets users while they are actively engaged in streaming content, providing a more targeted and personalized approach to advertising.
CTV advertising offers shopping apps a unique opportunity to expand their customer base and increase engagement. With its growing popularity and the shift towards streaming, CTV has become an essential platform for advertising shopping apps.
Omni-channel shopping refers to integrating various channels, such as physical stores, websites, and mobile apps, to provide a seamless experience for customers. Consumers now expect a consistent brand experience across all channels where they can easily switch between various platforms without disruptions.
CTV advertising for shopping apps can provide a more integrated approach to omnichannel shopping. Users can view advertisements while streaming content on their Smart TVs, and with the click of a button, they can directly make purchases through the shopping app on their phone or other devices.
Switching between devices and platforms is easy, allowing for a more effortless and streamlined shopping experience, enhancing customer satisfaction and loyalty.
CTV has experienced significant popularity growth over the past few years, and this trend is expected to continue. According to Statista, 88% of U.S. households owned at least one internet-connected TV device in 2023, and the number of CTV users among Gen Z and Millennials was more than 110 million.
MNTN Digital also predicts a rise in monthly CTV users among Gen Z and Millennials in the coming years, with an estimated increase of 6.5 million and 2.1 million by 2025. Gen Z and Millennials are key demographics for shopping apps, and the increasing number of CTV users presents a lucrative opportunity for these apps to engage with their target market.
CTV advertising utilizes data and targeting capabilities to provide users with a more personalized shopping experience. With CTV, shopping apps can target specific audience segments down to the household level based on viewing habits, demographics, and other data points.
The email addresses or device IDs associated with the CTV account can also target specific individuals, allowing for a more tailored and relevant advertisement experience.
Moreover, shopping apps can use this data to provide personalized recommendations and advertisements, increasing the chances of conversion and customer satisfaction.
CTV shopping apps offer a more convenient and user-friendly experience compared to traditional shopping methods. Users do not have to leave the comfort of their homes or switch between different devices to purchase products. With the click of a button on their remote, they can complete a transaction on their CTV shopping app.
For example, a user watching a cooking show can see an advertisement for kitchen utensils on their Smart TV and instantly purchase the shopping app on the same device without disruptions or extra steps. This convenience and ease of use provided by CTV shopping apps can attract more customers and increase engagement with existing ones.
Attribution, real-time data, and analytics are always available to track and measure ROI on CTV advertising. Shopping apps can track which advertisements led to purchases directly through the app, providing a clear understanding of the effectiveness of their CTV advertising campaigns.
The data and analytics provided by CTV can help optimize future campaigns and improve targeting, leading to more successful ROI for shopping apps. You can also track user engagement and retention on the app post-advertisement to measure the impact of CTV advertising on customer loyalty.
You need a powerful CTV advertising strategy to use this platform effectively for your shopping app. A trusted CTV advertising partner can help you develop and execute a successful campaign. Partnering with a fully managed programmatic DSP, you can access exclusive CTV inventory, advanced targeting capabilities, and real-time reporting.
VenziMedia, a fully managed programmatic DSP, can help you create a personalized CTV advertising campaign from start to finish, ensuring maximum ROI and success for your shopping app. With a team of experts and advanced technology, VenziMedia can help you reach the right audience at the right time with relevant and engaging advertisements for your shopping app.
