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Can Mobile Video Influence In-Store Shopping?

Shopkick is adding mobile video to its mix of rewards tools to generate awareness and entice consumers to interact with in-store beacons and products at the shelf.

Beacon-triggered rewards app Shopkick is offering its store partners the ability to target mobile videos to its users as way to promote brands’ loyalty programs and build awareness prior to shoppers heading to the retail aisles.

In addition to targeted videos showcasing store items, Shopkick users can also earn loyalty points — otherwise known as “kicks” — that can be used to discount purchases by scanning their receipts.

While the industry continues to debate the effectiveness and ideal length of mobile video advertising, the beta tests for Shopkick Video shows promising results. And there’s reason to believe that the Redwood City, CA-based company has the right mix to make targeted video work.

For one thing, consumers opening the Shopkick app are clearly intent on looking for something to buy. And the concept of video’s “sight, sound, and motion” as drivers of intent have long been accepted by marketers (there’s a reason TV ads command such high prices, after all).

Shopkick brings runway action to the app users' smartphones.
Shopkick brings runway action to the app users’ smartphones.

That’s why, in its tests, Shopkick Video can credibly claim a 90 percent average completion rate, compared to 68.3 percent industry standard for mobile video, according to the Interactive Advertising Bureau.

“We believe that content and advertising need to be delivered in the right context to consumers to create immediate value,” said Alexis Rask, Shopkick’s COO. “Shoppers want to be rewarded for their existing purchase behavior and marketers want to capture these micro-moments as they happen. Our technology and innovative approach allows us to serve as the platform of choice for top brands and retailers.”

Last fall, Shopkick, which counts American Eagle Outfitters, Macy’s, MasterCard, Procter & Gamble, Mondelez, and Revlon among its clients, projected that its “kicks” would help produce $800 million to $1 billion in sales for its retail and brand partners in 2015 — up from $1 billion in the previous four years combined. In all, Shopkick has said it’s guided over 90 million store visits and 140 million direct product engagements from users scanning its products from among the aisles at stores.

With the addition of its video function, Shopkick is betting on driving more engagement with brands way before those consumers enter a store. Plus, the tools broaden Shopkick’s arsenal beyond beacon-triggered deals.

“Consumers are watching videos while at home, browsing through products and planning their shopping trips, or when they are in-store to get more product information,” a Shopkick representative told GeoMarketing. “While it’s possible for videos to be triggered by beacons in-store, partners are using them more for awareness and motivation to visit the products in-store.”

About The Author
David Kaplan David Kaplan @davidakaplan

A New York City-based journalist for over 20 years, David Kaplan is managing editor of GeoMarketing.com. A former editor and reporter at AdExchanger, paidContent, Adweek and MediaPost.