Shoppable ads accelerate marketing but can brand loyalty take the backseat?

Once upon a time, the marketing funnel was a neatly defined, linear journey—awareness, consideration, conversion, and finally, brand loyalty. Consumers took their sweet time weighing options, brands patiently nurtured leads, and ads were meant to spark curiosity rather than immediately demand a credit card swipe.

But then came shoppable ads—digital advertising’s equivalent of an express checkout lane, collapsing the funnel into a single click (maybe two; max three, we promise). Brands and advertisers rejoiced, expecting frictionless sales and skyrocketing ROIs. But, as with all things in marketing, reality is slightly more complex.

While shoppable ads may seem like the holy grail of instant gratification, they don’t entirely replace the traditional marketing funnel. According to Nikhil Kumar, Chief Growth Officer at mediasmart by Affle, they’re best used as part of a broader strategy that recognizes the consumer’s multi-platform journey.

“Shoppable ads are a powerful tool, but they work best when integrated into a strategy that ensures every interaction adds value beyond just the transaction,” he says. “While these ads enable direct conversions, brand-building remains crucial. Consumers often engage with multiple touchpoints before making a purchase, and relying solely on shoppable ads may cause advertisers to overlook where their conversions are truly coming from.”

So, while these ads offer a smoother ride to the finish line, they don’t eliminate the need to build trust and awareness. They merely speed up the process—provided the groundwork has already been laid.

The Great Compression of the Funnel

Vartika Verma, Senior Director of Global Marketing at Gupshup, views shoppable ads as a transformative force, not because they replace traditional marketing but because they collapse the funnel. “The evolution of shoppable media isn’t replacing traditional marketing funnels—it’s compressing them,” she explains. “With over 850 million internet users, India has seen a mobile-first consumption shift, with platforms like YouTube, Instagram, and WhatsApp leading engagement.”

In other words, the “in-the-now” culture—where discovery, consideration, and purchase happen in real-time—is turning the traditional funnel into a much shorter, much faster transaction loop.

While shoppable ads excel at capitalizing on consumer intent, they can’t function in isolation. Abhinay Tiwari, Chief Growth Officer at Admattic, points out that a well-oiled marketing machine still needs awareness-building efforts. “It’s a common misconception that shoppable ads eliminate the need for the awareness and consideration stages,” he notes. “Shoppable ads make the final step—conversion—quicker, but they don’t remove the need to generate awareness and build trust. In fact, they work best when they complement the earlier stages of the funnel.”

For brands, this means investing in storytelling, influencer collaborations, and compelling content that nurtures potential buyers before serving them that irresistible ‘Buy Now’ button. Because, let’s be honest, even the sleekest shoppable ad won’t work if the consumer has never heard of the brand before.

And the game-changer? “Conversational Ads. These take users straight from a social media ad to a brand’s WhatsApp, where AI agents assist with product discovery, offer personalized recommendations, and complete transactions—all within the chat window. The elimination of platform-switching friction is key,” says Verma, adding, “One of our clients in UAE, Sharaf DG, saw an impressive 4X ROAS and a 43% improvement in lead qualification through Gupshup’s Conversational Ad deployment. This isn’t just incremental improvement—it’s a fundamental reimagining of how digital discovery translates into commercial outcomes.”

The power of the Emotional Quotient

Prady Kumaar, CEO and Co-Founder of NP Digital India, emphasizes that brand identity remains key in influencing purchase decisions. “Shoppable ads take consumers closer to the purchase decision, but they don’t fully replace the awareness and consideration phases,” he says. “Building brand identity helps create an emotional connection and establish trust before consumers are ready to buy. Consumers want to understand a brand’s story, values, and credibility before making a purchase.”

So while shoppable ads might make impulse buying easier, they don’t necessarily cultivate long-term brand loyalty. And in an era where brand affinity is often built on social proof, reviews, and engaging content, skipping the trust-building phase can be a costly mistake.

Not all products benefit equally from a compressed funnel. Meher Patel, Founder of Hector, believes the impact of shoppable ads depends heavily on the category. “For certain low-consideration products, the traditional funnel compresses significantly, leading to almost instant purchases,” he explains. “However, in categories where decision-making is complex, such as luxury goods or high-value electronics, consumers still seek additional touchpoints before converting.”

This means that for brands selling everyday items—like skincare, fashion accessories, or snacks—shoppable ads can be a game-changer. But for brands dealing in premium gadgets, financial products, or luxury goods, they remain just one piece of a much larger puzzle.

India’s young, mobile-first population makes it fertile ground for shoppable ads. The convergence of e-commerce, social media, and conversational commerce is reshaping how consumers shop. Brands that recognize and adapt to this shift stand to gain the most. Whether it’s WhatsApp commerce, Instagram checkout, or Amazon’s ad ecosystem, shoppable ads are redefining how Indian consumers move through the funnel.