Is User-Generated Video the Right Place to Start?

I’ve read several posts and articles lately about the impact of user-generated video content (UGC video for short). It can seem like a powerful tool, helping knock down two important barriers to launching a video program. First, it helps get around the challenge of producing by pushing the burden to your customers. Second, there’s an argument that consumers are more easily influenced by UGC video, because it comes from someone like them.

There’s some truth to the first argument if coverage is a bigger concern than ROI. The second argument has been soundly proven wrong by research conducted by the e-tailing group and released earlier this year. Retail Customer Experience summarized the findings here or download the full report, sponsored by Invodo, at this link.

And now Comscore has released a report that compares the impact of UGC video with professionally produced video. Like the e-tailing group research, it shows that professionally produced video has a higher impact on consumers than UGC video. (30% higher impact, in fact, based on a 24.7% lift for professionally produced video vs an 18.7% lift for UGC video). Here’s what adds credibility to the findings: the research is sponsored by EXPO, a platform for UGC video. That makes the findings a bit like Coke winning the Pepsi challenge. We can be pretty sure that this research isn’t biased.

The report also finds a higher impact when consumers view both professionally produced video and UGC video together. That leads Jack Loechner to make a case in MediaPost that a retailer or brand should deploy both to realize the full impact. As a guy who’s on the ground helping retailers and brands launch video programs, though, I have to disagree with his conclusion for two reasons.

First, only a minority of consumers will choose to view both videos. That means that the “synergy” the report suggests will, in reality, be realized only on a small percentage of transactions. The second consideration is the bigger one. Where you are in your video program? If you’ve covered all your key products with video, the recommendation to further increase lift by adding UGC video makes sense. If – like many retailers and brands – you still haven’t covered all your key products, the math based on Comscore’s numbers would say that there’s higher return in broadening that product coverage first.

Kudos to EXPO for sponsoring the research and adding to everyone’s knowledge about how video impacts business. User-generated video has a place in the market now, and that place may well grow as the market evolves and matures. For now, when I look at the data combined with an understanding of where retailers and brands are in adoption of video, I think businesses should start where they see the highest ROI. UGC is a consideration for the not too distant future – but it’s not where most retailers and brands should be focusing their video efforts.

Online retail started with product descriptions long before consumer ratings and reviews were added. And in the same way, professionally produced product videos will become table stakes long before UGC video attains similar status.

See it differently? Let me know in the comments.

 
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eMarketer, MediaPost and More on Superior Shopping Experiences

A few short weeks ago we released Delivering Superior Shopping Experiences via Video, in conjunction with research firm the e-tailing group. We were excited to release it because it’s the first research of it’s kind; direct insights into how consumers interact with video in the shopping experience.

It generated quite a bit of coverage, which fell into two broad groups. The first group focused on the behavioral element, noting that the research demonstrates how videos boost consumers’ confidence in their purchase. Several years worth of quantitative data has shown that video at the point of purchase increases conversion and decreases returns. This survey data gives us the reason behind that conversion lift: consumers feel more confident in their purchases because they have had a clearer look at the product. Publications that covered that angle include:

The second group noted that the research has profound cross-channel implications, as the survey found that video was a preferred form of content for smartphone and tablet users. This is timely; as both the MediaPost and E-Commerce Times articles note, there are now as many smartphones in the marketplace as feature phones (or what I call “dumbphones”, i.e. non-smart phones). That means we’re entering a world where the majority of consumers have a video shopping tool at their fingertips – if businesses are willing supply the content. Those publications included:

OK, clearly I find the research interesting and so do the publications above. How about you? If you haven’t read it, download it here and let me know what you think in the comments.

 
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Five Video for Business Lessons from The Hunger Games

Take aim at a video strategyAfter opening with a $152MM weekend ten days ago, “The Hunger Games” remains the top box-office draw in the US. It’s now up to $250MM, and there’s speculation that strong word-of-mouth from those who’ve seen the film could drive it to dominate the box office for a third weekend. Clearly the movie, based on Suzanne Collins’ teen novel about Katniss Everdeen, has both buzz and staying power.

The story’s intended to teach life lessons, but it It also has lessons for retailers, brands and other companies creating video for business. (When you enjoy your work as much as we do at Invodo, nearly everything relates to it). Here are five lessons I took away:

1. Question the accepted ways of doing things. In Panem, the dystopian setting for the story, the twelve Districts surrounding the Capitol once rebelled. As punishment, two teenage representatives from each District must compete in the annual Hunger Games, a televised battle to the death with only one winner.

It’s implied that this functions as some sort of social control by giving the populace just the right mix of hope and fear. This is a great setup for the story but doesn’t, when you think about it, make a lot of sense. (Unless you think that “Jersey Shore” and “Ice Road Truckers” are similar conspiracies to keep us in line). In order to enjoy the movie, you just have to accept it and move on with the story. Maybe it’ll make more sense when I finally read the book.

However, when you’re launching a video program, you’ll want to question things that don’t make sense. You’ll hear arguments that your videos have to be short, thirty seconds or less in some cases. And someone will probably make a claim that user-generated videos are inherently more credible. Question those assumptions, because they may not hold. In fact, recent research shows that consumers are willing to watch two minutes or longer for video that genuinely helps them with a purchase decision, and they find professionally generated content more trustworthy.

2. Show your audience what matters to them. Once the combatants (“tributes”) are selected and trained, they must demonstrate their skills to potential sponsors. This, Katniss’ mentor explains, is crucial. Sponsors provide supplies that can make the difference between life and death, so “make sure they remember you.” Katniss, an accomplished archer, takes his advice to heart and startles a bored crowd by putting an arrow through the apple in the mouth of the main course on the buffet table. It scares the heck out of them – and they remember her.

Like the sponsors in the movie, your potential customers are dealing with a great deal of noise and distraction. If you want their attention, you have to earn it by clearly showing something that matters to them. If they’re shopping for a product, cut to the chase and show them the features that matter. If it’s archery they’re after, take aim and let fly like Katniss did. Either way you’ll cut through the noise and get their attention.

3. Focus on what matters in the long term. Another bit of mentoring Katniss acts on is the advice to avoid getting drawn into the immediate battle for weapons and food when the tributes are first released in front of a “cornucopia” brimming with supplies. Instead, she focuses on what’s needed for survival – finding strategic high ground away from the others as well as a supply of water. By doing this she avoids the initial pitched battle over resources and is better positioned for long-term survival.

It can seem like there’s a cornucopia of shiny objects to distract you when you’re launching a video  program. The prospect of going viral is only one of many shiny objects that will tempt you. If water is what really matters for survival, producing and deploying effective content across your site and product catalog is what really matters for a video program. Analytics are important, but look for ways to ensure that analytics and customer feedback are a seamless part of the production process. A fully integrated workflow that brings it all together provides a real advantage over a competitor more focused on the shiny objects.

4. Think and act strategically. Katniss may seem like an underdog, but she is a strategist throughout – whether evening the odds by purposely destroying a stockpile of weapons and food, or using a personal situation (I won’t give everything away) to manipulate the Gamemaster into changing the rules. Strategy can trump superior firepower and perhaps even allow a cunning combatant to take on the established power structure.

Strategy is a plan designed to achieve a vision. So your video strategy starts with the vision, and the vision leads to one or more goals. Perhaps it’s increased conversion, perhaps it’s SEO benefit, perhaps it’s customer experience. Once you’ve defined those goals, define the metrics that matter. It’s worth remembering that many video platforms excel at measuring what matters to publishers, yet can’t measure the single most important metric for a retailer or brand – conversion lift. By knowing what your objective is and what metrics tell you if you’re achieving it, you can ensure that your video program is deployed strategically rather than as a vanity or me-too project.

5. You can’t do it all yourself. Even in a winner-take-all game, Katniss bonds with a younger combatant named Rue and works with her to defeat an alliance of stronger enemies. And she ultimately pairs up with Peeta, also from District 12, to win the game by redefining the rules and facing down the Gamemaster.

A successful video program isn’t launched by one person. It delivers results to a team of stakeholders and it’s smart to involve them early to gain buy-in. Identifying stakeholders (ecommerce, brand, creative, merchandising) and bringing them to your side is crucial. Just as important is the selection of a video partner. Select a partner who is expert in the type of production you need, can deliver metrics to prove it, and is able to scale beyond the capabilities of an in-house program.

And as you go forward with  your video program, may the odds be ever in your favor!

 
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Deliver a Superior Shopping Experience Via Video…Starting Now

We knew when we engaged the e-tailing group to complete a study of over 1,000 consumers on how they use video in a business context that it would yield valuable insight.  What we were unprepared for was just how groundbreaking this research would be. Frankly, we haven’t seen “voice of the consumer” data like this before. And we’ve been working hard with the e-tailing group’s President, Lauren Freedman, to package this information up in a way that’ll be helpful to all retailers and brands.

Excited yet? We are. Because today, we announce the official release of these findings in the whitepaper, Delivering Superior Shopping Experiences Via Video: Consumer Insights and Retail Execution.  In this report, Freedman summarizes the results and draws game-changing insights from her research.

Download the whitepaper here.

 
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eTail Palm Springs Attendees Hungry to Improve the Consumer Experience

In the whirlwind that was the 4 knowledge-packed days of eTail Palm Springs I have no doubt that everyone walked away with some favorite take-aways. Here are mine:

Multi-channel is not the future- it is the present

Last week at eTail a long standing belief of ours was reaffirmed- multi-channel retailing is here and it is strong. Channels are no longer separate entities. According to Ravi Raj, VP of Products at Walmart, 50% of products are researched online and then bought in the store. This multichannel message was shared by the slew of sessions with a profound focus on mobile. What does this mean for you? Customers no longer care what channel they are purchasing through but they do care about the experience. It is important to integrate your various channels and listen to customers to ensure a consistent and memorable experience.

My stomach waits for no one

Need I say more? If you attended eTail Palm Springs this year my guess is that you were like me- dreaming about a 2 pm lunch that seemed so far away. Tips for next year? Snack heavily so that you don’t miss a beat by running to grab something to ease your stomach. No one wants to be that guy bothering the person next to you with your rumbling tummy.

All the cool kids want to be rock stars… or Guy Kawasaki

If you didn’t stick around for the last day of eTail Palm Springs you missed out on a truly “enchanted” keynote. For those who don’t know- Guy Kawasaki, founder and CEO of Alltop.com, is truly a rock star. While his presentation focused on the fundamentals of creating an effective online presence through social media, his “Pillars of Enchantment” are entirely relevant and can be applied to just about any piece of the eCommerce industry. His four pillars included likability, trustworthiness, doing something “DICEE” (Deep, Intelligent, Complete, Empowering, and Elegant), and enchanting your own employees first. If you missed it I highly recommend downloading his presentation when eTail makes it available online at the end of the week. Check out his recent interview with Business Insider.

Video Enhances the Customer Experience

During the Monetizing Online Video Summit, Invodo’s own Justin Crandall, hosted a session entitled “Video for Business: 8 Video Myths Busted.” During this session Justin busted myths proven wrong during a recent study of 1000 consumers with the etailing group. The insights gained from this study can be used to improve the online customer experience by showing how to most effectively use video on the site, in email, social media and mobile campaigns, as well as in the store. Click through to view the recorded webinar “Captivating Consumers through Cross-Channel Video.”

Favorite eTail quote ever… FAVORITE ECOMMERCE QUOTE EVER

“WTF stands for Website, Twitter, and Facebook.”

I could go on and on about my experiences but I will share one final take away- it will be hard for eTail Palm Springs to top itself next year!

Looking forward to seeing everyone back in 2013!

 
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Three Key Learnings from IRWD 2012

There’s theory, and then there’s practice. If you’re like most Web design professionals, you’re interested in the theory but focused on ideas that you can put into practice right now.

For Web design and user experience professionals seeking such ideas, Internet Retailer’s Web Design and Usability Conference in Orlando was the place to be last week. Sessions were full of hands-on, actionable information – so much that 97% of attendees say they’ll use the information gained in sessions such as site critiques with the e-tailing group. Below are some of the best ideas we heard during an amazing week.

Get them to the Payment button fast – but don’t lose sales along the way. According to Monetate’s Eric Miller and Envelopes.com’s Laura Santos, there’s a basic optimization problem here that’s often overlooked. Once a customer hits ‘Add to Cart’, a retailer must balance laying out a clear path to checkout with collecting accurate payment information and creating opportunities for additional sales. And like any optimization problem, the right way to solve it is to test rigorously and make data-based decisions.

Design for the new reality. Betsy Emery from TELLUS Web and Vijay Murali of Nutrisystem created a great deal of buzz with the idea of designing for mobile and tablets first. Many mobile initiatives start with making existing content available via mobile channels. That means that designers view the small screen and the touchscreen primarily in terms of constraints rather than opportunities. By beginning with a clean slate and designing for mobile first, a retailer or brand has the opportunity to take full advantage of those opportunities.

Make the most out of your interactive assets – including (of course) video. Office Depot’s Shannon Wu-Lebron spoke about video alongside Invodo CEO Craig Wax and made several key points. Being strategic about placing video calls to action in the right place yields a higher video view rate, getting more out of your video content. Video is often thought of as valuable for complex products, but ideo can also drive benefits for simpler products – even, as Wu-Lebron pointed out, printer paper. There’s a full writeup on the session here.

There were many more learnings as well. Chief among them – we’re already looking forward to next year!

 
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Your Questions Answered Here: Captivating Consumers through Video

We had great attendance on yesterday’s “Captivating Consumers through Cross-Channel Video” webinar.

Lauren Freedman of the e-tailing group debuted results from a survey into how over 1,000 consumers use video during the shopping process. Judging by the questions attendees asked, interest was high and so was the level of sophistication of the attendees.

We couldn’t get to all the questions during the session, so I’m answering a few more here.

Q: Is buying video production services ROI-positive for an etailer?

A: Yes.

(pause)

OK, sounds like you want more detail. Our clients consistently report realizing ROI based on the business goals they set.

ROI is based on deciding which needle you want to move and why, and on how much you spend to move that needle. For Bizchair.com, increasing sales with video was a key goal. They found that the 13% of their site visitors who viewed video accounted for 33% of their sales. Stacks and Stacks reported increased sales with video as well. Living Direct had increased engagement as a key goal, and realized that with a 9% increase in time on page. And, as we learned in the webinar, consumers consistently say that quality matters. That’s why our clients choose to invest in well-produced, but cost-effective,video production.

Q: What has been the reaction from online retailers to the idea of category videos versus product-specific videos?

A: There’s certainly value in both. It’s attractive to leverage your video investment across a category at times. That said, I think the place to start is with your business goals. Analyze your site traffic and customer base, then do the math to determine where you can have the most impact. Product-specific videos are attractive in that they should pay off in clearly incremental sales, based on conversion tracking and A/B testing. That makes the business case easy to build. However, if you’re converting well on the product page but not doing as well in moving consumers down the funnel, you might want to start at the category level.

And – final note – a video gallery can be a great way to leverage your investment in product-specific videos. One video, two use cases, two locations. And if you do it right, you can index for category-level search terms in the gallery while indexing for product-specific search terms on the product page. That brings the right searchers to the right pages, making the most of your video SEO.

Q: Do you have data showing consumer preference between third party production versus company generated video content?

A: Yes. Stacks and Stacks found that Invodo-produced, retailer-branded video content drove higher conversion than manufacturer-supplied content. We also see that in data from Video Ratings and Comments, where consumers rate Invodo-produced, company-branded video as more helpful than video produced by other sources. And, as we discussed on the Webinar, companies that have traditionally used highly informal videos are recognizing the benefits of emphasizing good quality sound and lighting.

Q: What do you think about YouTube as a search engine as opposed to just a video hosting platform?

A: YouTube’s the second largest search engine – bigger than Yahoo! or Bing. It’s a great place to be found. Your video strategy should include leveraging your video assets across channels, including YouTube. I recommend using socially optimized edits for YouTube and Facebook. Reason: on a product page, your goal is to drive conversion – to get the consumer to click the “add to cart” button. But in social distribution, your goal is to bring that consumer to your site. That may require a shorter edit and an explicit call to action, such as “learn more at www.invodo.com.

Q: What’s a good source of video statistics and information?

A: As Lauren said on the Webinar, she searched quite a bit and didn’t find anything close to a definitive resource. We publish a lot of information here on the Invodo blog and in our newsletter (kindly subscribe, if you haven’t, and thank you!). I frequently see journalists and bloggers linking to our video statistics page. We keep it updated with both Invodo and third-party information.

Did I miss a question? If so, email me at russatinvododotcom
and I’ll be happy to respond.

 
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Captivating Consumers through Cross-Channel Video


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.

 
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Latest Video Shopping Statistics – Part 1

2012 is here, and pundits are already making their predictions. (We are too). But first let’s look back on an amazing 2011, with a focus on Q4 and the holiday season.

This was a record-setting season for online retail. Cyber Monday was the busiest ever, at $1.25 billion according to Comscore.

To dive a little deeper into the record-setting activity that occurred in eCommerce video, we dived into data from across the Invodo client base. That’s the largest network of video-enabled retailers in one place. Tens of thousands of videos across about 100 retailers and major brands gives us a good read on how shoppers used video during 2011 and during the holiday season. Key learnings:

Today’s shopper relies on video more than ever – and more experienced shoppers lead the trend. As previously reported, Cyber Monday video views increased by 897% and Black Friday video views increased by 337% over 2010. But that’s only the tip of the iceberg. Looking at all of Q4 2011, video views increased by more than 3x. Why was Cyber Monday even bigger? Good question. My take – Cyber Monday shoppers are the most sophisticated and dedicated online shoppers. They know how to take full advantage of the tools available to them, from reviews and free shipping to video and 3D interactive experiences.

Shoppers prefer Facebook and email for sharing. 46% of Q4 video shares were on Facebook. Email was nearly as popular, accounting for 40% of shares, and Twitter was used 14% of the time. If you don’t have sharing enabled for your videos, you’re missing out on an easy opportunity to get additional views and sales.

Today’s holiday shopper is wired, multichannel, and multiplatform. Mobile browsers accounted for 12% of holiday season video views on Invodo client sites. Over half of that – 6.3% – was iPad, and Android was 3.5%. I saw plenty of people using their phones in store aisles to check prices and availability as well as to get product information without waiting for a store associate.

That’s a lot bigger than any discussion about HTML5 versus Flash. The same shopper may research on a laptop, stop into a store to kick the tires, view a product video on their phone while in the aisle, and ultimately purchase on their iPad. Are you leveraging your videos and other content smoothly across these touchpoints?

A final point: if this season was groundbreaking in terms of tablet usage, I can’t wait to see what happens in 2012. Reason: the Kindle Fire’s adoption rate has overtaken the iPad’s. Amazon has planted an Amazon-connected storefront in the hands of millions of consumers. Am I the only one who sees eCommerce implications there? How will that affect Apple’s iPad strategy?

Shoppers are vocal about which videos help them shop – and which do not. Shoppers using Invodo’s Ratings and Comments feature rated videos an average of 4.19 out of 5 stars. Apparel, do-it-yourself and toys received the highest marks, but multichannel retailers scored well across all product categories.

In a subset analyzed for content, videos that included a demonstration of product features receives almost a full star more than videos that did not. User comments on videos without clear product demonstrations included responses such as “I expected to see the product in use.” This is a “video coming of age” phenomenon. Consumers expect video, like any other site content, to provide value above and beyond simply creating motion to catch the eye.

Video drives conversion across product categories, but does so differently depending on type of product and type of shopper. Given the size of the Invodo client base and the depth of our analytics, there’s some surprising and useful data there. Stay tuned – that’s coming in a second post as soon as I have an hour to crunch the data and an afternoon to put it in context. If you’re not subscribed to the blog, this might be a good time to sign up.

 
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Congratulations to Our IR Hot 100 Clients

It always makes us smile when our clients succeed! Several Invodo clients recently received recognition as one of Internet Retailer’s Hot 100 E-Retailers of 2012. What boosts companies like this to the top in eCommerce? Site optimization, personalization and videos that help consumers navigate purchase choices emerged as front-runners in the mix.

Babies “R” Us was noted as having an exceptional online store that helps shoppers find exactly what they are looking for. Babies “R” Us employs video to showcase products as well as to offer service support. In the example below, a virtual advisor explains the perks of the Rewards “R” Us program.

View content for Babies"R"Us Rewards.

Office Depot made the list for their multi-channel approach that enables customers to shop and buy anywhere. Their scan-and-go mobile app makes ordering office supplies easy, with only a few swipes of a screen. As you can see below in the videos, Office Depot pros give detailed information along with demonstrations to equip shoppers to make the best purchase decisions.

View content for ofd0003-j122 Cut Sheet Paper Multi.



View content for ofd0023-j122 Swingline Optima Grip Elctric Stapler.

 
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