Impact of video on in-store activity

In today’s attention-based economy, marketers must seek out advertising formats that their target audience will engage with and not block or skip.  As consumers have become skillfully adept at evading interruptive marketing messages, some advertising formats stand out as particularly effective at capturing consumers attention and driving key brand metrics. Two formats in particular, video and incentive-based rewards, are consistently ranked among the most positive forms of advertising, and viewed most favorably by consumers.

Video is one of the most engaging ways to reach consumers and capture their attention to tell a brand’s story. In fact, the rise of video advertising can be attributed to the fact that short-form video is a true win-win for consumers and marketers. Consumers get branded content that is more dynamic, educational and entertaining while marketers have a greater opportunity to engage, tell their brand or product’s story and build meaningful relationships.

On the Shopkick platform, we’ve found video to be a particularly powerful driver of brand metrics across the purchase journey. While planning their shopping trip or building their list, users can watch a branded video at home or on the go, and be rewarded with kicks, our in-app currency. After viewing, they can save the featured product to their shopping list. Engagement rates for video are much higher than industry standards, as the incentive for viewing drives up Shopkick average completion rates to 94%, compared to industry average of 68% (IAB 2017).

On Shopkick you can connect the viewing of the video to in-store activities like product engagements and purchases. Users are incentivized to visit the product in-store, and are rewarded for picking up the product at shelf. At this point, users who have watched the video are already aware of the product attributes and benefits, and with the product in-hand, we’ve found they are much more likely to purchase.  For example 24% of unique scanners watch the brand video and 32% of receipt uploaders watch video.

An example of how video works in the Shopkick platform:

To reach and engage their target audience, marketers must understand the types of content consumers seek and deliver it in the right context to build awareness and ultimately drive sales.Reaching consumers before they get to the store is critical to establish awareness, affinity and get on the shopping list, ultimately increasing likelihood of conversion and purchase.

To learn more about Shopkick Video, contact us today!

Top takeaways from Mary Meeker’s 2017 Internet Trends Report

Mary Meeker’s annual Internet Trends Report is essentially required reading for anyone who works in tech and advertising. In 355 slides, she analyzes relevant trends in internet adoption, advertising + commerce, media + entertainment, gaming, enterprise healthcare, China, India and startups.

In this post, we break down some of the key trends that advertisers need to know:

Meet consumers where they spend their time

The shift to mobile continues as consumers increasingly concentrate more of their media time in mobile at the expense of other channels. However, advertising dollars have not kept pace resulting in a $16 billion opportunity based on the gap between consumer time spent in mobile and advertising dollars spent in mobile. It’s critical for marketers who seek to build relationships with consumers to meet them where they are spending their time.  In today’s advertising economy, consumer attention is the new currency.


Challenges in cross-channel ad measurability

While advertisers rely on measurable engagement metrics, there are still widespread challenges in measuring ROI and offline metrics like conversion and revenue. Before even measuring sales, most marketers and platforms are still trying to figure out if and how their digital activities drove in-store visits.  For example, Snap recently acquired PlaceIQ, and Google have Facebook are now attempting to track store visits and sales through POS data. In 2016, Deloitte reported that digital’s influence on in-store sales surpassed 50%, influencing 56% of all in-store retail sales.  Yet understanding this influence on a shopper-level is still a challenge for most retailers.  In fact, 67% of retail executives said their greatest obstacle in offering an omnichannel experience is tracking customer analytics across channels. See more on how Shopkick measures online to offline attribution here.


Understand the ads that consumers want

Consumers increasingly view non-native advertising formats as both interruptive and annoying, which is why ad blocking software penetration continues to grow. Already close to 20% of US consumers have it installed and that number is much higher in developing markets like China and India.  However, there are ad formats that are viewed more positively, particularly incentive-based video ads tied to mobile app rewards, social click-to-play and skippable pre-roll. For example, 68% of consumers view mobile app reward video ads as positive vs just 19% for mobile app pop-up video ads. This has implications for viewability and engagement going forward, and incentive-based video will continue to grow with consumer favorability.

Shopkick has seen tremendous results with rewarding users for watching video on our platform.  Our engagement rates are significantly higher than industry standards, with a 93% completion rate vs. 68% (IAB). Video is also a powerful driver of in-store activity, increasing both product engagements and purchases. See a case study from Barilla on the power of incentive-based video on driving in-store metrics here.


Incorporate gamification tactics to optimize loyalty and engagement

Mary Meeker examines best practice gaming mechanics like repetition, planning workflows, solving puzzles, completing projects, leveling up, and competition. Successful non-gaming companies have also incorporated these tactics into their products to optimize consumer learning and engagement.

Shopkick is a shopping rewards program, and like many other loyalty programs, we have incorporated conventional gaming tactics into our app to keep our users active, engaged and retained.  As a result, users report feelings of great satisfaction and accomplishment after having earned rewards and accumulated kicks.  Advertisers should incorporate these mechanics into marketing strategies on a campaign level or when selecting advertising partners. These tactics can be leveraged to keep consumer’s attention, keep them engaged, and keep them loyal.

To read the full Internet Trends Report, view here.