In a new study that could shake up marketing strategies across the board, the Interactive Advertising Bureau (IAB) revealed some eye-opening details about how brands and consumers really feel about Commerce Video ads. Despite 70% of digital advertisers already using this ad format, there’s a major disconnect between what companies think works and how consumers actually respond.
The report, titled “Unconnected Commerce: The Disconnect Between Brands and Consumers in Digital Video Shopping,” shows that while Commerce Video is gaining traction, brands may be missing the mark. Nearly all advertisers (96%) believe their strategies hit home, but consumers are telling a different story. Many are frustrated by the very ads that are supposed to drive their purchases, with 7 in 10 admitting they find Commerce Video ads annoying on a regular basis. Ouch.
What Exactly is Commerce Video?
First things first, what is Commerce Video? According to IAB, it refers to digital video ads that feature a clear call-to-action, like “Shop Now” or “Sign Up.” These ads are designed to prompt immediate action and guide consumers through the buying process, making them a key player in modern-day shopping.
With people spending more time on Connected TV (CTV), social media, and online platforms, brands are betting big on these quick, snappy video ads to capture attention and close the deal. In fact, 95% of advertisers using Commerce Video are doing so more frequently than other media types—and they plan to invest even more in the coming year.
But here’s the kicker: while Commerce Video is undeniably effective, it’s not foolproof. The study found that brands need to tread carefully to avoid turning off potential buyers.
Why Consumers Are Frustrated
Here’s where things get messy. Brands may think they’re hitting all the right notes, but consumers are singing a different tune. Many are fed up with how these ads are presented, leading to some pretty negative feelings.
- Too Repetitive: More than 70% of shoppers said Commerce Video ads feel more repetitive than other types of advertising. And when ads keep popping up again and again? People get irritated, fast. This could explain why one-third of consumers feel annoyed with these ads at least once a week.
- Wrong Timing: Most advertisers believe consumers are only interested in Commerce Video ads when they’re in a “shopping mood.” But here’s a surprise—70% of consumers say they prefer to see these ads when they’re relaxing at home, not when they’re actively shopping.
- Too Short: Advertisers often push shorter ads, thinking they’re more effective. But many consumers want more info before making a decision. Nearly 30% prefer videos between 30 and 60 seconds to give them enough time to digest product details and feel confident in their purchase.
How Brands Can Bridge the Gap
So, what can brands do to fix this growing disconnect? According to the IAB, the answer lies in getting smarter about how they deliver these ads. Chris Bruderle, Vice President of Industry Insights at IAB, says it’s all about finding the right balance between catching attention and not overloading consumers.
Brands should reconsider the timing, frequency, and length of their Commerce Video ads to better align with consumer preferences. For instance, retargeting—the practice of showing ads to the same users multiple times—might not be as effective as brands think. Instead, companies should focus on making each ad more meaningful and less repetitive.
Another key finding? Creator and influencer videos have more sway than advertisers may realize. Only 40% of brands are tapping into influencers for their campaigns, but consumers say these are some of the most influential ads out there.
The Future of Commerce Video
As digital shopping habits continue to evolve, Commerce Video ads will likely play an even bigger role. However, brands need to step up their game if they want to keep customers engaged without pushing them away. By making small adjustments—like improving timing, ad length, and creativity—advertisers could see much better results.
David Cohen, CEO of IAB, sums it up: “There’s a fine line between effective and annoying, and brands have to walk it carefully. Get it right, and Commerce Video has the power to transform how we shop.”
If brands take note of these findings and tweak their strategies accordingly, Commerce Video could become a game-changer for both businesses and consumers alike. For the full study, you can check out the IAB’s report, “Unconnected Commerce.”
