Evolution of Advertisements

Technological innovation has disrupted almost every industry. Advertising has undergone a massive change because of the digital transformation. Although people are now bombarded with an unending stream of information, growth in the number of platforms for information dissemination enables marketers to be more effective, flexible and creative while targeting, motivating and engaging an audience.

Online advertisement (ad) spending surpassed TV ad spending in 2017. Gone are the days of avoiding irrelevant ads with a swish of a remote; the internet is now powering a new generation of ads which are more personalised, interactive and effective.

What are Interactive Ads?

It has been argued that traditional advertising has elements of interactivity; the viewer need not be termed as a passive recipient of information because he or she does actively interpret and construct meaning from the ad’s content. Moreover, the feedback dimension of interactive ads which is considered non-existent in traditional advertising can be interpreted as existent in traditional advertising in the form of a process with a longer time lag (eg. a purchase after viewing a TV commercial).

This article addresses interactivity in terms of real-time engagement between the viewer and the ad, such that the viewer can even actively modify the content of the ad being viewed.

Interactive ads are those which require action or interaction from both sides in real time; the user’s action enables him or her to modify and co-create the content of the ad. It is, admittedly, difficult to differentiate an interactive ad from another digital ad. Although a click or an impression may not qualify as an interaction — video, display and pop-ads have also been classified as “interactive”. We have identified four types of interactive ads based on type of format and higher levels of engagement as compared to static digital ads.

Types of Interactive Ads

Interactive Video: A video with an added level of interactivity in terms of allowing viewers to scroll around the screen or to click on various on-screen options.

Take a look at this 360 degree video on YouTube which is a part of the Boursin Sensorium ad campaign. It lets all viewers dive into and explore a fridge packed with ingredients, while users with VR headsets can virtually step into the fridge. This ad campaign was complemented by booths in select locations where people could experience the Boursin Sensorium campaign in person (4D experience by combining VR with sound, smell, temperature) and engage with the brand through hands-on activities.

Interactive End Card Ad: Similar to the interactive video described above, an interactive end card ad usually consists of a video ad followed by a layer of interactivity in the form of pop up options which show up at the end of the video. These pop up options act like a Call To Action, enabling the viewer to make a decision like land on another page.

Playable Ads: Imagine being able to test out a game within the ad itself. A banner ad pops up with a playable version of the game being advertised, enabling the viewer to get a feel for the game without downloading it.

Cognitive Ads: Cognitive ads are ads which can think and learn and therefore, can perform human-like behaviour. NOIZ makes use of use of a cognitive bot called NIKOLA to enable users to initiate conversations with an ad display which interests them. As more consumers interact with AI powered NIKOLA, it becomes more “intelligent”.

Think — clicking on an ad by a hotel chain and having a live chat with it to determine which hotel location would best fit your exact preferences. The real-time conversation enables higher retention and conversion. Moreover, the actions of the user enable unique data collection which can then be used by the advertiser to improve user experience and act on the preferences expressed.

Will Interactive Ads Become The New Standard?

The benefits of interactive ads are numerous. The possibility of engagement makes these ads inherently less intrusive and more personalised.

Apart from allowing the audience to actively develop a relationship with a brand by interacting with and getting a feel for it through the ad, interactive ads have a 3x conversion rate as compared to a normal video ad. Conversion rates of playable ads can be up to 7x greater. Retention rates also increase as an user ends up spending more time looking at and interacting with the ad.

As people continue to spend greater amounts of time online on their smartphones, interactive ads can be expected to become more pervasive.

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