Not to sound like a broken record, but we’ve been arguing for a while that shoppable ad tech will drive significant innovation – and revenue – over the next few years. But that doesn’t mean that consumers will immediately change their behavior and commonly “interact” with ads. Such shifts take time. It’s clear, however, that some big streaming players and advertisers plan to accelerate the transition to a more shoppable world. The expected closing of the Walmart-Vizio deal in the next few weeks will no doubt create solid ground for new shoppable experiences. But an announcement this week by Warner Bros. Discovery suggests that shoppability will soon advance well beyond QR codes or even more sophisticated, clickable TV ads. And like so many things these days, the next innovation hinges largely on artificial intelligence.
WBD’s new “Shop with Max” feature leverages metadata and AI technology to identify items within television shows and films and then pair them with related items in an advertiser’s catalog via a QR code that takes them to a second screen. That screen essentially lets them shop those items without interrupting the viewing experience through a new “product showcase” mid-roll format “inspired by on-screen content” and a mobile shop that features 12 to 20 items related to what the consumer is watching and linked to advertisers’ e-commerce sites. In addition, WBD announced “Moments,” which uses digital services firm KERV’s advanced AI tech to detect audio and visual cues within content streams so advertisers can target audiences engaged with “specific topics that align tonally with their messaging across the entire Max portfolio.” It’s based on 40 moments ranging from cooking to real estate to science and space, with the idea to extend beyond simple endemic context so advertisers can “reach viewers in the right mindset while they’re consuming contextually relevant episodes.” Among the first brands to give it a go is Wayfair, whose penchant for household items seems especially well suited to contextual ads that can pluck any item out of a scene, with Wayfair Brand Marketing Head Kara O’Brien hoping the tech “will make it easy for viewers to discover and purchase items for their homes.”
Next? While using AI to detect contextual content and immediately match it to a buy button offers a new level of sophistication, all of these shoppable options will rely primarily on QR codes to transition consumers to a second screen where they can actually make a purchase. The big question is when these systems will move beyond relying on a third-party device like a tablet or phone and embrace the more seamless experience of purchasing natively through the smart TV or streaming box’s user interface. Walmart and others have tested that functionality with partners like Roku, but so far QR codes remain the shoppable tech of choice. Perhaps that’s an adequate testing ground as consumers get used to the idea of ad interactivity, but eventually content owners and aggregators will need to get together to coordinate more native systems that integrate seamlessly using single-click or voice-prompt ordering. That day will come. But not yet. The good news is that innovators are laying the groundwork to get consumers ready for what’s to come. And WBD’s 11-year deal this week with NBA and that has “resolved all disputes relating to the NBA’s recent media agreements” suggests that WBD will have plenty of opportunities to push the limits on interactive ads in the coming years.
