Are Shoplets Better Than Banner Ads?
By David Dorf-Oracle on Jul 21, 2009
As I reported back in May, Alvenda helped 1-800-Flowers deploy "shoplets" across hundreds of websites for Mother's Day. Shoplets are commerce-enabled advertisements that let customers purchase items without leaving their current website. Jim McCann, CEO of 1-800-FLOWERS.COM stated,
“Through our collaboration with Alvenda, we have now opened millions of stores on Web sites frequented by our customers.”
The results from the program are in, and they are impressive. Using an A/B testing approach, 1-800-Flowers compared shoplets against traditional banner advertising and found that interaction rates with shoplets were 10x higher than standard display ads. Additionally shoplets drove more sales than banner ads, generating 41% more sales per impression. The full report can be found here.
I guess shoppers really liked the convenience of the shoplet.
But the interesting discovery is that interaction rates dropped by 20% when promotional language was included in the shoplet. The less the shoplet seemed like advertising the more customers were attracted. I can think of several ways to explain this, but they would all be guesses. Anybody have a good explanation?