in-app video advertising

3 ways in-app video advertising can benefit CPG brands

CPG brands considering in-app video advertising should be aware of the massive potential that the technology holds. Smartphone ownership has reached about 70% penetration in the U.S., meaning nearly every household decision maker has one. These devices allow brands to travel with consumers and send them messages when they’re most likely to make a purchase, heightening the potential of smartphones as marketing platforms. By partnering with third parties that offer video advertising capabilities, brands can increase sales by connecting with consumers as they use their favorite apps.

In-app video advertising works across a wide variety of platforms, from social sites to shopping apps and games. Video ads can heighten user engagement while offering scalable, easy to monitor marketing for brands. They also create a way to connect with users in the shopping aisle, when they’re likely to make a purchase. While there are several benefits to in-app video advertising for CPG brands, let’s discuss those that help brands find new opportunities, scale campaigns, and connect with traveling consumers.

In-App Video Advertising Benefit #1: Rapid Market Growth Creates Opportunities

In-app video advertising is the number one method of app monetization for developers. As such, many of these developers prioritize building video features when rolling out their apps. Specific brands now have a wide selection of in-app video advertising platforms to choose from, including:  

  • Games: Brands can seek out popular mobile games as advertising platforms. Here, the consumer typically agrees to watch advertisements in exchange for game lives or rewards. The advertiser gains video viewership through incentivization, which enhances brand perception.
  • Shopping platforms: Platforms like Shopkick allow consumers to collect, monitor, and redeem rewards points (or in Shopkick’s case, kicks) along the shopping journey. For example, Shopkick’s rewards-based model allows users to earn kicks for watching branded video advertisements both at home and in the store. The incentive establishes positive brand affinity as the consumer is preparing to shop, and keeps the brand top-of-mind throughout the shopping trip.
  • Video streaming apps: Brands can buy advertising space before, during, and after primary content on popular platforms like YouTube and Hulu. However, this category may have limited potential as many offer opt-out options for consumers who want to avoid advertisements.

These three are the primary mobile video advertising methods most marketers look to, but there are many other options in the social space as well. As app developers continue to see the monetization potential of in-app ads, more opportunities will open up for marketers. As such, marketers should regularly check for new platforms with whom to partner.  

In-App Video Advertising Benefit #2: Scalability Controls Costs

In-app video advertising offers a way to scale messages which traditionally weren’t scalable. Before the internet, broadcast television was the only platform used for video marketing. Marketers had to buy time slots which were expensive and broad. The rise of internet video streaming gave birth to much more flexible options, which allowed marketers to pay based on actual views or clicks on an advertisement.

in-app video advertising benefitsMobile apps have taken this a step further with enhanced targeting capabilities. Marketers can now pay based on views of their message, and have the ability to choose the audience to which their messages are served. They can set an ad to play only for female consumers age 22 to 35 who’ve purchased their products before, as an example. This targeting improves the ROI as the consumers who see the advertisement are the ones most likely to buy the product. Brands can take this a step further by leveraging mobile apps to target consumers based on their specific location and proximity to products.

In-App Video Advertising Benefit #3: Mobility Offers In-Store Potential

In-app video advertising can be leveraged in the store to improve sales and enhance the customer experience. Consider simple video greetings, where a personalized message plays for a consumer on their phone when they enter a specific store. That personalized greeting can include product recommendations, inform them of deals, or simply welcome them to the location.

This method engages consumers from the very start of their shopping trip, which is a critical juncture for influencing their buying decisions. It can even guide them to seek out specific products that they may have overlooked otherwise. This feature is typical in shopping apps where consumers receive rewards points for locating, scanning and purchasing products. It’s also popular in retail or QSR apps when stores want to greet consumers as they enter, but may not have the staff to do so.

In-app video advertising can work for online and brick-and-mortar sales by reminding consumers of a brand before they make a purchase.

In-app video advertising can work for online and brick-and-mortar sales by reminding consumers of a brand before they make a purchase. It offers brands the opportunity to target consumers in particular demographics, which increases the marketing ROI. Video ads can even take the place of sales associates by providing personalized greetings as customers enter a location. The affordability and effectiveness of in-app video advertising make it an essential tool for CPG brand marketers who want to grow their audience.

Shopkick helps our partners connect with consumers via our intuitive app. For more information on supplementing your marketing with our program, contact us.

Image courtesy of Gorodenkoff

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Dima Volovik

EVP of Product and Engineering

Dima Volovik is the EVP of Product and Engineering at Trax Retail — Shopkick.

Dima Volovik is the accomplished product and engineering leader who led teams to deliver innovative and commercially successful e-commerce products, marketplaces, and enterprise solutions for Amazon, Comcast, Fandango, and Universal Music. Before joining Trax, Dima was the Director at Amazon, where he led product development and Engineering for Amazon Appstore and Amazon Prime Video, CTO at Fandango, and Paciolan, head of technology at Golf Channel/Golf Now, and Global VP of Direct to Consumer Technology at Universal Music Group. Dima’s expertise includes developing consumer products, marketplaces, and enterprise solutions.

Dima grew up in Baku, Azerbaijan, where he received his MS in Electrical Engineering from Azerbaijan Oil Academy, and he currently resides in Los Angeles, California, with his family.