We’ve recently received coverage in Mediapost, Retail Customer Experience and Website Magazine around a study we completed with the e-tailing group. Some of the findings seem to have struck a nerve in the industry – especially around what is sometimes called “the 30-second myth.”
OVPs (Online Video Platforms, the technology-only side of the business) are fond of publishing viewing time metrics showing how long viewers watch before clicking away. They then characterize that as insight into consumer behavior and urge retailers and brands to create shorter videos – regardless of the message to be conveyed or the quality of the content.
The problem, of course, is that their approach assumes that all content quality is the same, all product categories have the same level of complexity to communicate, and all audiences are equally engaged. Pretty big assumptions. That’s why we commissioned the research as a consumer-facing study. Rather than guessing about consumers based on clicks, we thought we’d directly engage them to find out what makes video content valuable to them. By combining that research with data mined from our network of close to 100 major brand and retail sites, and tempering that with insight from researcher Lauren Freedman, we hope to form a more complete picture.
Here’s the cool thing: we haven’t even formally released the study, and it’s already generated quite a bit of industry dialog. The findings on video length are only a small part of what we learned. We’ll have a better industry discussion when we can put that data in context. We’ll do that, with Lauren Freedman’s help, on Wednesday, February 8th during a Webinar, “Captivating Consumers through Cross-Channel Video.” We hope you can join us!
The video-enabled consumer has spoken. Find out what they said!
Over 1,000 shoppers were surveyed to find out how they use video in shopping and what elements matter to them. We invite you to join the e-tailing group President, Lauren Freedman, and Invodo Director of Marketing, Russ Somers, who will share these research insights and the implications for online and multichannel merchants. Register today>>
Learn:
- Where, why, and how consumers watch video
- Where video performs best
- What consumers will watch – and what they won’t
- How consumers use video to make purchase decisions
Consumers expect video to be a part of their shopping experience. But how do you know what type of video will engage and convert them? Find out why video quality matters, what today’s consumer will watch, how to extend your video investment across channels to leverage the power of social networks and mobile devices, and more.
Leave with insight into consumer behavior and best practices to engage and inspire your shoppers.
Guest Post by Adam Figueira, Product Marketing Manager at Monetate
Online shopping lacks the physical experience that accompanies browsing and purchasing in a brick-and-mortar store. As a result, ecommerce retailers must constantly be on the lookout for new methods to showcase their products in effective and compelling ways.
One popular way that online retail brands set themselves apart from the competition and engage consumers more effectively during the shopping process is through the use of videos that tell a visual story about how products can be used.
Online merchants can incorporate video into their visitors’ ecommerce experiences in a number of different ways. Let’s examine six considerations for testing the effectiveness of how video performs on websites:
1. Video vs. No Video. Perhaps the simplest way for you to test the performance of video on your website is by segmenting traffic so a percentage of site visitors receives a video demonstrating the product on the product page while the rest receive the same page without the video. In a test like this, one version of the page would contain only a product photo accompanied by its description, while another version would contain a video of the product accompanying the details.
A major retailer that Monetate works with recently learned that seeing was believing with product videos. While management initially thought that the play button would obscure the product and confuse visitors, this assumption did not bear out when tested. In fact, the video version of the product page was more successful, and lifted the conversion rate by 1.26% while generating a significant projected annual revenue impact.
2. Video A vs. Video B. Another way to test the impact of video on your website is by delivering two different product videos to different groups of website traffic. A test of this nature is important when you have a number of merchandising videos to choose from (perhaps showcasing different product attributes or styles) and are interested in identifying which video is more likely to resonate with consumers, and ultimately influence sales.
3. Which Play Button Is the Best? 
You have countless options for enticing consumers to play a product video, but how can you be sure which one will have the biggest impact on whether the consumer decides to actually click ‘Play’? In order to make an educated decision, marketers should test different options of what the play command looks like and optimize all website videos towards the version that is shown to generate the most clicks, boost the add-to-cart rate, increase conversion, etc.
A few options for the play button include a semi-transparent overlay on top of the video itself that’s intended to make it stand out on the page, a play arrow that points to the right, or a version of the word play that appears somewhere on the image thumbnail, as shown in the example to the right from Altrec.com.
4. Auto-Play vs. Click-to-Play. You will want to decide whether to serve consumers video that plays on its own as soon as a page loads or video that has to be triggered by a user action before it plays. This can be tested by segmenting different groups of traffic to receive auto-play and click-to-play video options, and then determining what is more efficient for the particular goal you are trying to accomplish with each video.
5. Thumbnails, Titles and Descriptions. The video thumbnail is the first thing a consumer sees when visiting a page with a video. This important first impression can make or break a video’s success. Working under the assumption that more compelling thumbnails will drive more views, you should not neglect this essential aspect of merchandising the video on your website. Constantly test new thumbnail options to ensure you’re displaying the most successful image at all times.
While video titles and descriptions can seem like an afterthought compared to the production of the video, they are essential to the video’s ultimate performance—titles, descriptions and thumbnails are the foremost attributes that consumers use to determine whether they watch videos online.
6. Video Badging. Product badging, a simple way to do smart merchandising, is the modern version of what shopkeepers have been doing in-person with customers for decades: calling attention to product features and benefits to get shoppers to interact with the merchandise.
Badging represents a powerful psychological tool that taps into consumers’ inherent need to be directed toward particular products, and the same rule applies with video. Just like badging a product thumbnail with messages like “staff pick” or “free shipping,” you should consider implementing the same method with videos, as shown in the example below from FreePeople. The most important thing to remember when badging videos, of course, is to test different variations and iterations to identify the ones that perform best.
Lastly, and most importantly, the guiding principle behind testing whether video will make an impact on your business is to have a clear vision of your goals before you test video content. You have to understand what you want to achieve from video—whether it is driving traffic, increasing conversion rates, boosting the average order value, or something else—before integrating it into visitors’ website experience.
When testing to get the most out of your video efforts, ask yourself the following baseline questions:
• Who is the test for?
• What does the test show?
• When will the test run?
• Why are we running the test in the first place?
The answers will help establish clear goals for your video campaigns and serve as a guide when you work towards meeting or exceeding them.
Adam Figueira is Product Marketing Manager at Monetate, the leading provider of website A/B and multivariate testing, targeting & personalization.
As online shoppers, we’re no strangers to videos on retail sites. With business goals in mind, we may even wonder where the video is coming from, why some brands seem to have a more robust video presence than others on retailer sites, and how those videos influence purchase rates.
Due to visible benefits of increased conversions, enhanced customer experiences and improved SEO, retailers are deploying as much video as they can, but need brand manufacturers to fill the gaps. Brands, or manufacturers, who bring video to their products will be the early winners in a crowded market where the consumer’s voice has so much influence. Here are three ways brands can leverage video content to maximize results:
Brand Videos on Retailer Sites
It’s no secret that retailers want video. Earlier this year the eTailing group reported that 73% of online retailers used video on product pages in 2010. For a major retailer selling thousands of products spanning hundreds of brands, universal coverage is probably not feasible. But, brands can gain an advantage and break through competitive noise by supplying video to their retailer channels.
Video viewers have been shown to purchase at higher rates and greater volumes than site visitors who don’t view video. In fact, according to Comscore, video viewers are 64 percent more likely to purchase and, on average, stay on the site for two minutes longer than other site visitors. Innovative brands that take advantage of this opportunity are a step ahead in terms of customer engagement and brand exposure, which greatly affect shopper behavior.
Brand Videos Link Social Media Channels to Purchase Pages
According to a recent survey by the Content Marketing Institute, 50 percent of manufacturers surveyed had established a YouTube presence for brand-building and connecting directly with consumers.
Click the image to view a video that shows how Crocs leverages video content on their YouTube channel with a clickable overlay button that links directly to the product page. This way, people who view the video can be easily directed to the brand’s site, making a more fluid purchase process.
Brand Videos on Brand Sites
Of course, brands will want to leverage video content on their own site, but that strategy can extend beyond product videos. Brand sites that offer instructional or how-to videos may have a better chance of standing out to the consumer. The brand website is an ideal place for consumers to be directed to when they are researching or looking for help. These types of videos guide shoppers through the purchase process, leading to higher conversions.
Engage Consumers Anywhere they Shop
Placed on the brand’s website, a retailer’s site, social media pages, viewed from a kiosk, or launched on a mobile device from an in-store QR code scan, brand (or manufacturer) video engages consumers, boosts sales and projects the brand voice across all shopping channels.
See more examples of Invodo Video for Brands here.
Guest Post by Gary Lombardo, Commerce Solutions Marketing at Demandware
Shopping is an interactive sport. While smartphone wielding consumers are the main players of the sport, retailers are the ones who set the field of engagement, both online and in the physical world. A variety of methods, tools and technologies exist for retailers to engage consumers, but few are as mature and easy to utilize as 2D codes.
The Rise of 2D Codes
2D codes are two dimensional (hence the name “2D”) images encoded with information. The information can be decoded with a camera-driven scanning application, which will perform a variety of functions including displaying texts, linking to a specific URL, or linking to video content. 2D codes are used for a variety of industrial uses, but 3 key types are used for consumer-facing uses:Quick Response Codes (QR Codes), Microsoft Tags (MS Tags, aka High Capacity Color Barcode) and barcodes. There are different reasons why retailers would use one type over another.
QR Codes and MS Tags in particular have risen in adoption among consumers, especially those that use smartphones. Smartphones provide consumers with the hardware (including the camera) and a platform for the software applications (i.e. ScanLife, ShopSavvy, MS Tag and others), making 2D codes easily accessible and practical for shopping like never before.
Forrester estimates that adoption of 2D code reading applications has risen to 15% in 2011 among smartphone shoppers and is expected to continue to rise in the future. Indeed, it’s difficult today to walk down the street or into a store or open a newspaper or magazine without finding a 2D begging to be scanned.
Uses of 2D Codes
2D codes are applicable throughout each stage of brand engagement with the consumer, which make them a great tool for retailers to create a more interactive shopping experience and connect the online and physical worlds. If applied properly, the benefits retailers can reap include greater brand recognition, greater online and in-store sales, an increase in average order value, greater customer satisfaction and repeat purchases, as well as reduced return rates and support costs. To realize these benefits, retailer should focus the application of 2D codes around four main uses, namely to:
1. Create brand awareness with consumers.
2D codes are a great tool for marketers to capture the attention of shoppers—particularly those on the go with mobile devices and those inundated with other information sources– to create market awareness and craft brand perception. Barney’s New York used QR codes as part of a “Back Stage Campaign” in early 2011 where they displayed ads in the New York Times and online that contained QR codes which linked to online, content-rich “backstage” stories of the products. This energized the approach to traditional advertising and helped drive brand awareness among consumers who may have otherwise not been reached.
2. Share information to educate consumers.
2D codes can guide potential consumers towards purchase by providing them information about products, services, events, and more. Columbia Sportswear produces world-class outdoor apparel for consumers who are interested in learning about how the product was produced, what materials were used to produce it, what conditions the products are meant to be used in and what additional features the product contains that may not be readily apparent. They use QR codes as part of in-store signage and hangtags on products in company stores, as well as other retailers who distribute Columbia gear, to provide consumers with more information about products through video and other content while standing in the store aisle.
Electronic Arts, a leading producer of video games, provides its distributors with in-store digital signage that contain QR codes for content samples of their products. For their game Dragon Age II, shoppers could scan the QR code and get a video demo of the game.
3. Drive consumers to purchase.
2D codes give retailers a unique opportunity to convert sales, especially when they help solve specific problems consumers face, such as cutting down on checkout time or offering immediate rewards. In addition to using QR codes to share information about how their coffee beans were produced, Ethical Beans Roastery and Ethical Bean Xpress Café give consumers the ability to scan QR codes on their products, allowing shoppers to skip waiting in lines and pick up the orders at checkout. Axis Salon, a trendy hair salon in Washington DC, uses QR codes in its storefront that link to videos featuring beauty icons and coupons for discount services—all helping to drive consumers to purchase.
4. Foster customer loyalty post-purchase.
After the sale, 2D codes can drive foster customer satisfaction by providing extra services, support and personalized offers. Nike uses QR codes in its stores to allow consumers to “Like” a product on Facebook, enabling consumers to share their affinity for a brand through recommendations on Facebook. A logical extension to this concept would be to provide rewards (loyalty points, mobile coupons, immediate discounts, etc.) for shoppers who provide such feedback. Ikea entertained the idea of using QR codes to provide video instructions on how to assemble products, such as furniture, making the post-purchase process a more enjoyable one. 
Similarly, QR codes can serve as an easy way to locate product manuals online or warranty information, which could be a real benefit to consumers who often do not keep such information that come with the products, and need to locate them immediately when something goes wrong. This would help cut down on support costs for retailers, in addition to fostering customer loyalty post-purchase.
The Future of 2D Codes
While 2D codes have reached a level of maturity where they are an effective tool for retailers today, they still have a number of challenges to overcome– standardization of code technology (open QR codes v proprietary MS Tags), reader availability, and deeper level consumer awareness beyond where it’s at today– optimally reaching the same level of consumer awareness that UPC barcodes enjoy today. They also face long-term obsolescence from Near Field Communication (NFC), but that is a ways off in the future given NFC nascent state at the present. Bottom line is that 2D codes do not require a lot of time or money to implement and can have large potential returns, so retailers should experiment with them while the cost of learning is low.
Gary Lombardo leads Commerce Solutions marketing at Demandware, a trusted, global leader in on-demand ecommerce. As part of his role, he helps retailers navigate the world of multichannel, mobile and social commerce. Gary tweets @garylombardo and can be reached via email at glombardo at demandware dot com.
Be sure to download the whitepaper “Quick Response Codes in a Multi-Channel World” to learn more about how retailer’s should take advantage of 2D codes.
In Part 1 of this video strategy series, I discussed how to get started on narrowing down your choices for types and placements of videos. Remember, when you’re doing a test or pilot program with a finite number of videos, the first tip is to choose one product category. Focusing on a single category increases the likelihood that that site visitors will have the opportunity to view a video, yielding better and broader data for future decision making. In Part 2, I’ll offer some specific advice around choosing the products to shoot videos for.
1) Product complexity
If a product is complex and has many functions and features for the buyer to consider, it is ideal for video. Invodo conducted a test program with a leading office supply retailer. In the test, videos were produced for complex products such as office furniture and technology as well as for common office supplies such as sticky notes and file folders. The test revealed that online shoppers viewed the videos for the complex products at a significantly higher rate. Conversions followed views with those products seeing a higher lift in conversion percentage. Logic would dictate that if the product is familiar and easy to buy, it probably doesn’t need a video.
Another customer, BizChair.com, wanted to give their online shoppers an experience that is as close to a physical interaction with their products as possible. The result? Customers who view video have average cart values that are more than $50 higher than shoppers who don’t watch video.
2) Popularity
One of the keys to getting impact out of your video investment is to increase the likelihood that the videos will be viewed. Internet Retailer reported that online shoppers who viewed videos were 85% more likely to buy. It stands to reason that you would want to do everything you could to get videos in front of your shoppers. One way to do that is to place videos on pages that already get high traffic – your most popular, high-volume sellers.
Also, consider which products will be heavily promoted through marketing and advertising campaigns. An ad, email campaign or home page rotator can drive interest and increased traffic to specific pages. Make it pay off by adding video to those pages.
3) Price and Profit margin
As product price increases, the amount of research done by the consumer also increases. Here you can offer a helping hand early in the research process by providing rich content that educates and engages.
To maximize the ROI of your video plan, include videos for high-margin products. Since video has been shown to increase conversion rates, start with products that already yield the most revenue.
4) Placement
Consider how shoppers will interact with your website and sprinkle videos throughout their natural visit pattern. For instance, many customers will shop an item using the site search feature on your website. Typically this will launch a category page relative to the search term.
Most of the time, these pages consist of thumbnail images with a product name and price. It can be very difficult for shoppers to compare one product to another with such limited information. Enhance shopping at this level by including a visible play call to action on products that have video. Clicking the play button can launch a player overlayed on the category page that will run the video and return to the category page when it is finished. Using this feature, shoppers can comparison shop several products at the category level without ever having to navigate to the product pages. It’s a great way to increase views and to provide your customers with powerful, decision influencing content early in the consideration phase.
Other areas to consider for video placement are landing and promotional pages which will benefit from increased traffic due to advertising. Finally, don’t forget the homepage. Video included in an image rotator for highlighted products will drive increased clicks and set the tone for the shopper that this is a site where video is an important part of the content strategy. The Home Depot is using this strategy on their homepage for products they are featuring during Black Friday. They employed a similar strategy last year and set company records for Black Friday and Cyber Monday.
Following these tips for product selection can help maximize what you learn and the results you derive from an initial video test program. They also work as you begin to scale the program across your entire website. For more strategy tips, sign up for our monthly eNewsletter. Each edition features video news, industry trends and tips to keep you in the know on everything eCommerce video.
In a recent study, 84 percent of cross channel shoppers said that a combination of in-store and online experiences best suited their shopping needs (eMarketer, 2011). For retailers who need a way to engage consumers in-store, through mobile and online, video is a strategic asset. Here are six creative ways to use video to reach consumers anywhere they shop this holiday season.
1) “On device” videos
Use videos on in-store devices to engage with customers as they shop. On device videos play from demo products as customers browse through items on display.
By using videos “on device” you increase the time shoppers spend interacting with the product. This extra involvement educates customers, which has a significant impact on purchase decisions.
2) On mobile launched through a QR code
Quick Response (QR) codes have gained momentum as cross-channel shopping aides. Launching video on mobile devices gives customers an easier way to gather information. And, by using a QR code, retailers have direct control on the content accessed through a scan.
Some retailers place QR codes at the point of purchase in-store. That way, customers can have a more in depth view of the product features as they shop. According to Google, 79 percent of smart phone users employ their device to help with shopping, and 70 percent use them while in store (Google Mobile Ads Blog, 2011).
3) In catalogs or direct mail
Now, even collateral delivered non-digitally can utilize QR codes with videos that launch upon scanning. And that’s because videos are capable of delivering a unique experience anywhere the consumer has their smart phone.
4) In email marketing
Incorporating video in email has been shown to increase click-through rates by two to three times (Forrester, 2010). That’s because video is more stimulating and engaging than text alone. Read more about using video in email marketing.
5) Site welcome videos
Welcome visitors to your site with short clips. Don’t think of this as an advertisement. Think of it as a welcome at the front door, offering unique information about how to have the best website experience.
Especially on retail sites with many product categories and complex navigation, an intro-video helps site visitors understand how to navigate optimally for their needs.
6) Video teaser for an unreleased product
Slightly different from a viral video because of sales focus, product videos used as teasers ramp up excitement around a new product or feature release.
A major appliance retailer recently ran a campaign in which they put videos on their website for products that were not available to purchase, in-store or online, until a later date. When that date arrived, they found that over 30% of customers who came into the store to buy one of the newly released products had watched the product video online. Essentially, the pre-release product videos had a direct impact on in-store traffic, increasing sales and making the customers’ shopping experience more successful.
Happy Holiday Selling!
Incorporating video in a variety of ways across multiple platforms provides benefits for both customer and retailer. For the customer, videos provide a more educational, engaging and personable way to gather information. For retailers, including video yields benefits of increased time on site, higher customer satisfaction, reduced returns, lower service costs, better SEO and much more.
How else are you using video this holiday season? Let us know in the comments.
We’ve seen the number of videos viewed on retail sites spike in the last few years as consumers become more comfortable watching video online. Comscore reported that video views on retail sites have increased more than 40% since 2009.
Why has there been such a shift towards video? One reason is that video communicates better than text alone. Essentially 90% of the population learns best by visual or auditory stimuli. Video provides both.
Last week Craig Wax, Invodo CEO, spoke about the future of online video for business at Innotech in Austin, TX. Here are three key takeaways from the presentation:
1) Online experience influences in-store purchases.
With the ease of online shopping, no longer must we trudge to the store and scour the aisles only to find that the product we wanted is out of stock. Yet in addition to doing product research online, most shoppers will also visit a store this holiday season.
Hal Lawton, President of Home Depot Online, recently said, “45 percent of in-store shoppers pay a visit to homedepot.com first.” (Retailgeek.com, 2011) That means customer experience online has direct influence on in store purchases. Crafting the best possible online experience is top of the list for both online and brick and mortar businesses.
2) Video breaks down the walls between on and offline shopping.
Tablets and smartphones have revolutionized the way people shop; 84 percent of smartphone owners use their devices to search local retailers (ROI Research Inc, 2011). Strategies for the upcoming months must focus on ways to best communicate with the mobile audience.
Just like today’s consumer, video has moved past product pages. Using scannable QR codes, video is accessed anywhere the consumer takes their smart phone. Over the past year, we’ve seen video-linked QR codes appear on in-store displays, catalogues and other printed materials. Unlike text, video thrives on the small mobile screen because it is easily accessed and visually appealing.
3) Video improves customer experience, increases conversion and engagement, and improves SEO. (Lenovo Case Study)
We wanted to see just how much Invodo video impacted business metrics. Here are the results we saw after analyzing data from Lenovo’s videos and eCommerce site:
The web is no longer about text and images. Video dominates internet traffic, and businesses are shifting from text based communication to the more captivating medium of video. As we gear up for the holiday season, expect to see more cross-channel strategies take the stage. We’ll be watching the trends and keep you up to date with the latest in how video for business helps retailers sell more online and in-store.
Trying to add video to your eCommerce mix without a clearly defined strategy is a bit like driving along the narrow, winding and frequently washed out red dirt roads in the Southern Alabama of my youth. Back then, there simply wasn’t enough paved road (or blacktop as we called it) to always get from point A to B. If I wasn’t being held up by a logging truck or a farm tractor, I was navigating old wooden bridges over swift streams that seemed barely wide enough to accommodate foot traffic much less my old 1959 Chevy Apache pickup truck. And, of course, these roads were on no map known to man. Reaching my ultimate destination was seldom a smooth proposition.
A video program, from concept to measuring results, should not be a harrowing journey down an uncharted and unknown path. Instead, plan for success from the outset by engaging in a video strategy session to ensure smooth steering toward increased conversion, enhanced SEO and robust ROI.
Leading auto parts retailer, AutoZone, works with Invodo to create diverse product and how-to videos. Some of the more complex videos produced feature mechanical system trouble-shooting and repair how-tos or installations. Videos such as these require detailed planning and precise execution by Invodo’s production team.
Before video was ever scripted or a single line of player JavaScript was integrated into site code, the AutoZone team and Invodo’s Client Strategy team sat down and dug into every issue that could and would lead to the success or failure of their pilot video program. The comprehensive video strategy session covered all finite details of the video program including:
The result was a clear path of smooth, paved road that led the way to a successful pilot program. The pilot program also yielded measurable data and direct experience which fueled the plans for a full eCommerce video program. Without the Video Strategy Session, none of that would have been possible.
Let me be clear. A real video strategy session is not something you do during a 15 minute meet and greet by the registration booths of whatever trade conference you may be attending. It isn’t a sales pitch disguised in a shiny wrapper.
A real video strategy session and the resulting success plan requires the participation of the extended client and vendor teams during a lengthy and structured discussion. A real video strategy session is preceded by qualifying discovery and is followed by committed adherence to the plan. A real video strategy session is the blacktop that paves the road, the signs that warn of trouble and keep you safe, and the map that keeps you on the path to your ultimate, desired destination. Anything less and you’re likely to find yourself fishtailing along a pothole filled road (or bridge) to nowhere.
At the recent shop.org Summit in Boston, Invodo CEO Craig Wax took a few minutes to talk with Retail Touchpoints associate editor Amanda Batista about video. Check out the video interview below, or click here to visit TouchpointsTV.
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