Video Insider: The Era of Online Video eCommerce
by David Needle (Video analyst for Vilynx & long time tech journalist/editor)
The news that Vilynx has unwrapped its analytics eCommerce solution for brands got me thinking about the growing importance and connection eCommerce has to video.
From new products, to how-to’s, and even news and entertainment, the era of online video as a sales platform either directly “watch this video for a special offer” or indirectly via sponsored ads is clearly upon us.
Here's an example of Staad Laptop Backpack by WaterField Designs utilizing Vilynx preview technology so viewers can quickly see the details of the product.
But online video, while hardly new, is still akin to the wild west when it comes to eCommerce; there are far from established rules or proven playbooks out there you can count on to implement a successful eCommerce strategy. (Before all the eCommerce authors and consultants send email, please note my emphasis on the word “proven”).
What’s encouraging is the growing number of success stories and the recognition of companies like Vilynx customer WaterField Design that it’s not enough to simply offer video on your site, you also need a strategy and a way(s) to figure out what’s working and what’s not.
Animoto had an interesting blog post last year about the benefits of video for small business, but I think the insights are relevant to bigger companies and brands as well. In a survey of 1,014 U.S. consumers, the company found that
96% of consumers find videos helpful when making purchase decisions online
Nearly three quarters are more likely to purchase a product or service if they can watch a video explaining it beforehand.
77 percent of those surveyed said consider companies that create online video are more engaged with customers.
Of course there are other factors including the quality and appeal of the video that matter. There’s also quantity because, according to another study, more is better. Video commerce company Liveclicker says a just-released study of its customers shows that retailers with video on most of their product pages have a 68 percent higher average order value (AOV) than retailers that have video on just a few of their product pages. In addition, the majority of respondents (88 percent) reported an increase in conversion rates when video was added to product pages, with 35 percent reporting extreme increases over the site average.
And the big payoff – the study shows that retailers with video on most of their product pages have a 79 percent higher conversion rate than those with video on just a few of their product pages.
As tools and strategy continue to be refined, I am sure 2015 will see an unprecedented number of video eCommerce success stories.
