Swipe, Click, Shop, Repeat!

Picture this, you are watching an ad and the model is dressed in the most fashionable and sleek outfit that you wish to own. Instead of having to remember the brand or product name, you just click on the outfit and buy it in seconds! No distractions, no detours. Welcome to the world of shoppable ads—an advertising trend that is becoming popular in India!

Instagram has solidified its position as a social commerce leader with its “Shop Now” button, enabling users to purchase products directly from the posts, stories, and live streams they see online, without having to leave the platform. This feature has made Instagram the go-to medium for many Indian brands and influencers, to sell products directly to their followers. YouTube has also introduced shoppable ads, allowing viewers to purchase items directly from the video content. Additionally, local platforms like Roposo and Moj are stepping into the shoppable ad space, showing the increasing shift towards a more commerce-driven social media experience.

“Instagram shopping and YouTube video action campaigns have driven higher engagement, particularly among younger audiences, who are more likely to make impulse purchases when the process is seamless and visually appealing,” says Gopal Asthana, CEO, Tata CLiQ.

Brands are seizing the opportunity to effortlessly connect consumers with their products. Gopal Asthana adds, “The integration of various shoppable ad formats has helped in seamlessly bridging the gap between product discovery and purchase, making our campaigns more conversion focused. By utilising various formats ranging from Meta’s Catalog Dynamic Product Ads (DPA) to Google’s PMax, YouTube TrueView, and more, we’ve improved our ability to engage consumers throughout their entire journey—from initial awareness to final purchase. This approach not only drives higher conversion rates but also ensures that our campaigns are more targeted, efficient, and effective in delivering results.”

Categories such as fashion, accessories, beauty, and luxury have flourished on these platforms. Meta’s Catalog Dynamic Product Ads (DPA) and Instagram Shopping are highly effective for displaying visually engaging products, while Google’s Performance Max (PMax) and Shopping Ads are excellent in driving high-intent traffic across a wider product range. “Creators and curators usually favour these categories due to their suitability for captivating demonstrations and tutorials. These items are visually appealing, resonating with a younger demographic, particularly Gen Z, who often makes impulse purchases based on quick, engaging content formats,” says Mansi Jain, Senior VP & GM, Roposo.

Chinmay Chandratre, Senior Vice President – Media, FCB/SIX India says that all their ecommerce/d2c brands have adopted shoppable ads and reallocating over 90% of their budget towards these formats. This shift has significantly gained momentum compared to previous years.
“Typically, we have observed around 2 times increase in CTRs when we switch to shoppable ads on Meta ecosystem. Adding to this, we also get visibility and confidence in driving the end metrics i.e. of purchase and ROAS, we’ve seen around 10% increase in purchase orders & around 20-25% increase in revenue after switching to shoppable ads,” he adds.

Taking Mamaearth as an example; the brand has made significant strides by leveraging shoppable ads. It began its journey with shoppable ads on Facebook and has since carved a strong niche in the market, driving high recall value among consumers. Similarly, Bewakoof, a brand popular with its audience, has effectively utilised shoppable ads to connect with customers and boost its presence.

“We are processing around 150,000 orders daily, with our viewer-to-buyer conversion rate now 2.5 times higher than when we first launched the 100% shoppable content format. This is driven by factors such as an improved discovery algorithm, multi-faceted product choices, strong brand partnerships, and a focus on understanding both curator preferences and audience interests. Additionally, our consistent quality checks and commitment to user experience have played a crucial role in this growth,” says Mansi Jain.

Chinmay Chandratre mentioned a pre-festive/end-of-season sale campaign for one of their D2C clients, achieving record-breaking revenue on their brand website—the highest in the brand’s history. Shoppable ads played a crucial role, contributing to around 41% of the total revenue, outperforming search campaigns by 10%.

Ensuring a seamless experience for consumers is necessary across Meta and Google; shoppable formats require meticulous attention to relevance, user experience, and backend integration. “We tailor product feeds and ad creatives to each platform’s strengths, whether it’s the visual appeal of Instagram Shopping or the broad reach of Google shopping ads. We also keep inventory and pricing consistently updated across all platforms to prevent any disruptions in the consumer journey. This approach ensures that our campaigns are impactful,” explains Gopal Asthana.

But there are challenges for shoppable ads as a successful campaign, it’s essential to have seamless integration of payment options like wallets and UPI. “Any issues there can disrupt the user experience. Understanding consumer behaviour at different stages allows for precise, tailored targeting. It’s not about overwhelming the consumer with ads but delivering personalised messages that resonate, as these have a much higher success rate. Ensuring a smooth user journey and accurate targeting is crucial; otherwise, it leads to wasted resources,” elaborates Sahiba Mittal, Managing Partner, Brand Strategy at dentsu.

People don’t find shoppable ads intrusive. When the content is done right—immersive and visually captivating, with shopping options seamlessly integrated—consumers actually appreciate it. Consumers enjoy it when platforms suggest options that they wouldn’t explore otherwise.

“Looking at the trend, in future, shoppable ads will have the ability to expand to other sectors as well, such as travel, food, automobile, etc. Therefore, the industry might be keen on surging the allocation of budget for shoppable ads to drive the optimal results,” says Shradha Agarwal, Co-founder and Global CEO- Grapes Worldwide.

In a world where scrolling is second nature, shoppable ads have become the digital equivalent of window shopping, but with less legwork and more instant gratification. From discovering new lipstick shades while binge-watching makeup tutorials, to wanting a chic new jacket from a live stream, shopping has never been more effortless—or addictive! As brands fine-tune their ads and platforms evolve, shoppable ads could soon pop up in the most unexpected places. Who knows? Your next impulse buy might be a vacation, a car, or even a pizza—ordered straight from an ad as you doom scroll in your PJs!