Shoppable TV screen: Couch commerce

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  Quantumrun Foresight
• October 30, 2024

Insight summary

Shoppable TV screens allow consumers to buy products directly from their TV while watching shows. This trend has accelerated due to the COVID-19 pandemic, which pushed more people to embrace online shopping and QR codes. As this technology grows, it could create new job opportunities in digital marketing, require stronger data protection laws, and influence how governments regulate digital commerce.

Shoppable TV screen context

Shoppable TV screens enable consumers to purchase products directly from their TV screens while watching programs. This technology integrates clickable elements or QR codes into TV ads, allowing viewers to buy products with minimal disruption to their viewing experience. The concept has gained traction with advancements in smart TVs and streaming environments, which have opened new avenues for advertisers to engage consumers. According to LG Ad Solutions, shoppable ads have resulted in significant engagement, with 38 percent of viewers likely to purchase by scanning a QR code on a TV ad. 

Developments in shoppable TV have accelerated due to the pandemic, which pushed consumers to adapt to online shopping and QR codes for various services. This period saw the rise of e-commerce and a shift away from traditional brick-and-mortar stores, creating a fertile ground for shoppable TV to thrive. For instance, Paramount and Shopsense AI launched a shoppable TV partnership during the 2024 CMT Music Awards, allowing viewers to buy clothing and other items seen on screen via QR codes. Similarly, NBCUniversal reported a 73 percent higher conversion rate for their shoppable TV campaigns compared to the industry benchmark. 

The potential of shoppable TV covers various interactive elements that enhance the shopping experience. Companies like ITV and Channel 4 in the UK have already implemented shoppable TV, enabling viewers to purchase items directly through their broadcasts. As more retailers and advertisers explore this medium, integrating augmented reality (AR) and virtual reality (VR) could further make the shopping experience interactive, making it more immersive and engaging. 

Disruptive impact

Consumers may find purchasing directly from their TV screens more convenient while watching their favorite shows, leading to increased impulse buying. Integrating shopping into entertainment could save time and enhance the viewing experience. However, this convenience may also encourage overspending and contribute to financial strain for some viewers. As this trend grows, consumers need to develop new habits for managing their spending in a more accessible shopping environment.

Companies can create interactive ads that not only attract viewers but also convert interest into immediate purchases. Retailers like Walmart have begun exploring these opportunities, and we can expect more businesses to follow suit. However, companies may face challenges in measuring the effectiveness of these ads and integrating them seamlessly into their overall marketing strategies. As more companies adopt shoppable TV, competition may increase, pushing businesses to innovate their ad formats and continuously enhance customer engagement.

Policymakers may need to develop regulations to ensure fair advertising practices and protect consumers from deceptive or overly intrusive ads. Additionally, they may consider investing in technology infrastructure to support the growth of digital commerce, which could drive economic growth. Globally, this trend could influence trade policies and regulations as cross-border digital transactions become more common. Overall, governments may need to balance promoting innovation with protecting consumer interests.

Implications of shoppable TV screen

Wider implications of shoppable TV screen may include: 

• Retailers investing in advanced analytics to better understand consumer behavior, leading to more personalized shopping experiences.
• New job opportunities in digital marketing and e-commerce sectors, requiring workers to gain new skills.
• Increased competition among streaming platforms to offer seamless shopping experiences, driving technological advancements.
• Potential environmental benefits as consumers shop from home, reducing the need for physical store visits and associated transportation emissions.
• Growth in data collection from shoppable TV interactions, leading to improved consumer insights but requiring stronger data protection regulations.
• Smaller businesses gaining access to broader audiences through shoppable TV ads, leveling the playing field against larger competitors.
• Governments establishing standards for interactive advertisements to ensure accessibility for all viewers, including those with disabilities.
• Increased screen time potentially impacting physical and mental health, prompting public health campaigns to encourage balanced media consumption.
• Demographic shifts as younger, tech-savvy generations drive demand for shoppable TV, influencing the types of products and services offered.

Questions to consider

• How could the convenience of shoppable TV change your spending habits and financial planning?
• How might shoppable TV ads influence your favorite TV shows and movies?