What are Interactive Ads? Know Benefits, Types, and Best Examples

Interactive advertising engages customers through active responses, feedback, or answers directly. This type of marketing communication promotes two-way communication and engagement, enabling users to interact with the ad in real-time.

Why are Interactive Ads so Popular?

As we all know, brands experiment with new campaign ideas to stay relevant, gain traction and popularity, and drive more sales. Interactive ads are one such experiment that many companies utilize to market themselves differently. This is a slightly different form of advertising that aims to engage customers and leave a long-lasting impression.

The market for interactive advertising has expanded significantly in the last several years. At a compound annual growth rate (CAGR) of 8.7%, it will increase from $35.65 billion in 2024 to $38.75 billion in 2025. (Source)

Benefits of using Interactive Ads 

1. Higher Brand Recall

As interactive ads inspire customers to act, the action forms a strong impression that results in higher brand recall among the customers. When compared to traditional ads, research indicates that interactive ad formats increase brand recall by more than 50%.

It can be understood better in the context of the IKEA effect, where customers have increased value for the goods that they assemble themselves. It is also a form of interaction that creates a long-lasting impact on the psychology of the people.

2. Immersive Experience

According to HubSpot’s report, 47% of marketers find interactive videos among the top three video styles for increasing engagement. The most commonly used interactive elements in an ad are polls, quizzes, games, or videos.

Unlike static ads, interactive ads offer an enhanced immersive experience of the product or service. They provide more clarity and information that users look for.

3. Increased Engagement and Conversion Rate

By motivating consumers to act, interactive ads increase the likelihood that they will interact with the ad by sharing, commenting, or clicking CTAs. Interactive advertisements, as opposed to passive ones, demand user involvement, which raises the possibility of engagement so users are more likely to convert

4. Personalized for each user

Interactive ads that are created using artificial intelligence allow real-time customization as per the user’s preference. According to the survey published by IAB on the consumer perspective on data personalization and privacy, the findings are:

The survey indicates that nearly 80% of people are more likely to engage with ads that are tailored to their interests. 

Source: IAB

Interactive ads can be customized to fit the interests or actions of particular users. Advertisers may produce individualized experiences that appeal to specific users more by corroborating data and analytics. 

5. Builds Trust and Loyalty

Consumers trust those brands more when they feel acknowledged or participate in some way. Additionally, the customer retention rate is directly correlated with increased engagement and conversion rates. Using interactive ads in the advertising strategy promotes communication with the targeted customers. 

6. Better Audience Insight

Users' interactions provide valuable information about their choices, interests, and behavior. Interactive ads may additionally identify crucial information about the needs and pain points as well. Advertisers could enhance the performance of their ads by keeping an eye on all of this data in their analytics. 

9 Types of Interactive Ads with Examples

There are numerous types of interactive ads, each with a different method of interacting with users. These ads seek to establish a closer connection with the viewer through chatbots, augmented reality, virtual reality, games, quizzes, and videos.

Interactive ads enhance user experience, increase engagement, and result in increased conversion rates. Brands can select the format that best suits their marketing strategy.

1. Interactive Shoppable ads

These are ads that let people purchase products directly from the ad, usually by clicking on CTA buttons. Shoppable ads make it easier for customers to buy right away after seeing a product they want by streamlining the purchasing procedure.

Mobile shoppable ads are dynamic ads created to introduce customers to goods or services directly within the ad. Conversion rates are increased by 30% when shoppable video ads feature an interactive call-to-action button. 

Platforms: Instagram, Facebook, Microsites, Pinterest

Examples:

Vivo Ad: The ad contains Vivo X50 series features with a BUY NOW option to go directly to the product page. These ads are intended to increase conversions by eliminating unnecessary steps. 

Full Ad: Vivo Interactive Ad Experience

Sephora Ad: The makeup brand Sephora frequently posts makeup lesson videos to YouTube, adding all of the product links that are related to the video to the shoppable section in the sidebar. The users can click and make the purchase directly.

Image Credits: Promo

2. Interactive Game Ads

Ads that use challenges or game-like aspects to draw users in, encourage involvement and repeat engagement by making advertisements seem more like entertainment. 

In-game ads, where a short, interactive game or app demo lets users try out a game for a few minutes before choosing to download or purchase it, are also a very good way to build engagement directly with the users. 

Platforms: Mobile apps and websites

Examples:

McDonald's Ad: One of the most popular examples of brand gamification is the Monopoly game from McDonald's. Fans have the opportunity to win cash prizes every minute by playing the game digitally. This campaign increased engagement on the app as well as in the stores. 

Image Credits: tmsw.com

Starbucks Ad: Through the Starbucks Rewards program, users can participate in fun games and seasonal spin-to-win activities for a chance to win quick rewards like a new car or summer drinks, or they can earn Star bonuses to buy a drink.

Image Credits: Antavo

Bajaj Finserv Ad: The ad is integrated with a calculator to calculate SIPs, tenure, and interest rates easily in the ad itself. It is a form of gamified ads that can appeal to customers for interaction.  

Full Ad: Bajaj Finserv Interactive Ad

3. Interactive Video Ads 

According to HubSpot’s research, 71% of consumers prefer videos over other types of marketing content. Interactive digital ads in the form of video let viewers engage with the content in an immersive way. A user can select products featured in the video or decide which plot line to follow and make decisions after having a full-fledged product experience. 

Interactive video ads drive 13x more interaction and 50x more CTA clicks. It improves user retention rate and brand recall as well.

Platforms: YouTube, Website, Mobile App, Social Media

Examples:

Mercedes Ad: Users can get plenty of information about the selected Mercedes car's style, technology, performance, color, and comfort from the video ad. Additionally, it features a call-to-action button that takes users straight to the website to obtain additional details.

Full Ad: Mercedes Benz Interactive Ad

Nespresso Ad: In this interactive video ad, Nespresso gives a detailed overview of its new product. These engaging interactive video examples improve the viewing experience by giving the viewers complete control over what they want to interact with. 

Full Ad: Nespresso Interactive Ad

4. Interactive Display Banner ads

Digital ads that have interactive elements that enable users to interact with the information are known as interactive display ads. These banner ads provide a more dynamic and captivating experience than static banners with interactive features, including integrated mini-games, animations, clickable call-to-action buttons, and mouse-over effects.

Platforms: Websites, Mobile Apps, Social Media

Examples: 

1. Vita Designer: An interactive display banner ad creation by Vita Designer where the product is in motion. 

Full Ad: Vita Designer Dribble

2. PandaDoc Ad: It’s an animated display banner ad that can be posted on social media platforms.

Full Ad: PandaDoc Ad Dribble Link

5. Interactive Story ads

Interactive story ads allow viewers to choose options directly from the stories. Users can respond to questions, vote in polls, and participate by swiping up on Instagram or Facebook Stories.

Integrating augmented reality and virtual reality to improve product visualization by offering a customized and engaging experience.

Platforms: Instagram, Facebook, Snapchat, AR & VR-enabled apps

Examples:

1. Nike Ad: A shoppable ad in the form of a story where the product link is given. 

Image Credit: Instagram

2. Dune Ad: In order to promote the movie, Warner Bros. developed a Snapchat campaign that included video advertisements, cameo stickers, and an augmented reality lens.

6. Interactive CTV ads

Interactive CTV (interactive connected television) advertising provides viewers with a more captivating viewing experience than traditional television. Picture-in-Picture (PiP) advertisements, interactive overlays, and carousel commercials are just a few examples of interactive CTV. 

CTV advertising is becoming more and more popular, combining the convenience of online advertising with the reach of television. By 2027, CTV ad spending is predicted to reach 46.89 billion dollars at its present rate.

Platforms: Apple TV, Amazon Fire TV, Roku

Examples:

Volvo Cars: Volvo used interactive CTV ads for the Roku and Samsung streaming services to highlight its new S90 vehicle.

Full Ad: Youtube

7. Interactive Web app ads

Advertisements that employ chatbots and AI that answer queries, help with purchases, or walk customers through product alternatives on a website. These ads engage consumers in conversation with the brand, usually to obtain additional information or complete a purchase.

Platforms: Websites, Mobile Apps, WhatsApp

Examples:

Covermitra Ad: This is a conversational ad using a human chatbot that gives a tour of the services. 

Full Ad: Covermitra Ad

8. Interactive DOOH Ads

DOOH is a form of advertising that displays advertisements in busy places using digital billboards, signs, and screens. As interactive DOOH provides real-time engagement, it surpasses static ads. It draws greater attention and produces quantifiable results using 3D and AR technology. DOOH makes it possible to target particular audiences, resulting in an entirely personalized advertising format. 

Platforms: Billboards, Wallscapes, Outdoor Posters

Examples: 

Coca-Cola Ad: Coca-Cola's "Masterpiece" campaign on the 3D billboards involves giving away a genuine, cool bottle of Coke to onlookers at São Paulo's Guarulhos Airport. 

Acadia SUV Ad: The DOOH used facial analytics technology and proximity-based marketing to show personalized ads. 

9. Interactive Print Ads

We have always seen more traditional ads printed in newspapers and magazines with images and texts. Printing ads that spark engagement is a revolutionary ad type.

Print ads are often considered more reliable and trustworthy because they demand interest and time from their readers. Interactivity with print ads can be added through a QR code scanner, innovative design integration, and technologies.

Platforms: Newspapers, Magazines, Billboards, Flyers

Examples

IKEA Print Ad: To determine whether a woman is pregnant or not, an IKEA pee commercial was broadcast in Sweden. If she is, a concealed text message indicating a lower price on a baby crib appears in the advertisement.

Full Ad: Ikea Ad on YouTube

Image Credits: campaignsoftheworld

C&A Print Ad: Fashion retailer brand “C&A” came up with an entertaining and ingenious print campaign that lets readers "like" items of apparel by clicking a Facebook "like" button inside the advertisement.

Image Credits: trendhunter

How KappaX let you create Interactive Ads in Minutes

With KappaX’s no-code editor, you can build an end-to-end interactive ad that can make customers aware and engage them more experientially.

The ads are created in various formats that engage the audience with the help of storytelling. The idea behind the ad is to cater to the users' queries and serve them with what they need. The ads are personalized in real-time as per the choices. Try out creating engaging ads that convert free with KappaX.

Future of Interactive Advertising

As time has changed, so have people's attention spans. Brands ought to level up their advertising game to get customers' attention for a few minutes while they are busy. Adding interactivity to the ad works like a communication bridge between the brand and the customers. 

Here are some of the future trends for interactive advertising:

Personalization

The ads will be highly tailored utilizing AI technology. It will be specially customized to fit the tastes, characteristics, and actions of every user. To keep the ads relevant, the ad copy will also be updated in real-time.

For instance, Google Ads uses AI and machine learning to trigger relevant ads as per the customers’ query.

The culmination of AR/VR technology

AR and VR are already transforming the advertising landscape. It is going to rule extensively in the next decade with its immersive ad experience feature. Ads are going to be felt and experienced rather than just seen. 

For instance, IKEA uses VR to create a virtual demonstration of the product to get a feel for it. 

AI & Chatbots Integration

AI-powered chatbots are going to transform the interactive ads future. Brands will produce conversational and highly customized advertising experiences using virtual assistance. These assistants can help with queries related to the product and services in real time. 

For instance, X has built Grok as an AI-powered chatbot that answers users’ questions in the app itself.

Short-form Video Ads

Interactive video ads are on the rise; creating engaging experiences using the click, swipe, and tap options can boost the engagement rate up to 5x. Brands will be incorporating shoppable, gamified ads in the form of short video ads to maximize the ROI.

For instance, Nike brings a ‘Style it Yourself’ campaign to choose your outfit to test how it looks. 

Data Privacy and Security

The ongoing technology proliferation in advertising works as a double-edged sword. It’s pivotal to keep data privacy and security of paramount importance. Brands will have to follow GDPR and CCPA guidelines to secure users' personal information and privacy. 

For instance, brands like WhatsApp, Meta, and Apple have data privacy guidelines to secure users' details.

Wrapping it up

The basic definition of interactive ads is ads that encourage some form of engagement with the ad. These ads demand a response from the viewer in terms of clicking, sharing, commenting, playing games, or engaging in any activity other than viewing the ad.

The future of interactive advertising will integrate AI, AR/VR, and other technologies with an emphasis on ethics and the customer experience.