Are Shoplets Better Than Banner Ads?

alvenda.JPGAs 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?

Comments:

Dave, for the record, the interaction rates increased 10.5X (not just a measly 10x)! In fact on some content rich sites like msnbc.com we approached an 18x lift.

;-)

Checkout a fun article on the first store running inside facebook at:

http://www.getelastic.com/first-facebook-sale/

Thanks for the post!
Wade

Posted by Wade on July 23, 2009 at 05:51 AM CDT #

Hello. Thank you for this great info! Keep up the good job!

Posted by johnny on August 06, 2009 at 04:44 PM CDT #

thank you! I really liked this post!

Posted by machoman on August 08, 2009 at 05:21 PM CDT #

Yes, Shoplets is Better Than Banner Ads but why you are forgetting it is too much costly comparison banned ads..

Posted by Astin on February 23, 2010 at 09:09 PM CST #

Why don't just post your guesses and we'll choose the best one.

Posted by Dave on March 29, 2010 at 04:04 PM CDT #

Additionally shoplets drove more sales than banner ads, generating 41% more sales per impression.

Posted by Michael on March 28, 2012 at 12:57 AM CDT #

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David Dorf, Sr Director Technology Strategy for Oracle Retail, shares news and ideas about the retail industry with a focus on innovation and emerging technologies.


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