Digital advertising is undergoing a major shake-up, and chat-based shopping is leading the charge. A new study from Smartly and Forrester Consulting reveals that conversational commerce is fast becoming the next big thing in marketing, with 73% of marketers planning to ramp up their investments by as much as 50% over the next two years.
With social platforms evolving into one-stop shops for entertainment, discovery, and instant transactions, brands are rethinking how they engage consumers. Instead of pushing ads into crowded feeds, they’re turning to real-time, one-on-one interactions via messaging apps, offering a direct, personalised route to conversion.
Moses Velasco, SVP of product, Smartly, said: “The most successful brands today understand that the consumer journey isn’t linear—it’s dynamic, spanning platforms, devices, and moments. Our research shows that while most marketers see unifying creative and media as critical to driving results, few feel equipped to do so. This gap underscores the need for brands to break down silos and deliver contextually relevant, personalised interactions across the entire funnel.”
Effective ads across the entire sales funnel
The report also exposes a major weak spot in the industry: most marketers don’t believe their creative is doing enough. Only 25% rate their ads as effective across the full sales funnel, largely due to the disconnect between media and creative teams. While 68% acknowledge that compelling creative is key to driving engagement, just 27% say their processes are fully integrated.
Smartly is utilising AI-powered conversational ads that collapse the traditional funnel, blurring the lines between brand awareness and direct sales. By leveraging chat-based interactions, brands can meet customers at their moment of intent, collect valuable zero-party data, and drive faster conversion, all without breaking the user’s online flow.
With budgets shifting and traditional ad formats losing steam, conversational commerce isn’t just a trend—it’s the next battleground for brands fighting for attention in an increasingly chat-first world.