Are “Smart” Videos the Key to Online Retail Growth?
As we have discussed in this space before, online retailers can and have used various types of videos to improve sales. Now comes definitive word that consumers are responding to these videos, plus a new development that could make these videos even more effective.
A recent article on eMarketer says that the effect of video in the online purchase cycle may be strengthening, especially in apparel. According to eMarketer, a Google/Compete study found that four in ten online shoppers went to a physical store or retail website because they watched an apparel video online, for example.
According to the study, 36 percent of online shoppers watched customer testimonial/review videos while shopping; 29 percent watched marketing videos within e-mails; 26 percent saw consumer generated videos; and 25 percent saw ads that appeared elsewhere on the Internet, which is the same percentage who watched ads appearing on TV network sites.
In terms of categories, the eMarketer article detailed results of an Invodo study from late March, which said the most popular category for online product videos was automotive/automobiles (31 percent of respondents watched), followed closely behind by consumer electronics (30 percent), music/DVD/videos (26 percent), toys/video games (24 percent), and computer hardware/software (22 percent). The poorest performing category was financial/insurance/real estate (1 percent), followed by gifts/flowers (6 percent), luxury items (7 percent), and gift cards/certificates (7 percent).
Meanwhile, Jim Dicso, president and chief revenue officer of SundaySky, in an interview with RetailWire, touted the benefits of "smart video."
These are videos generated for individual viewers while they are on the web, he elaborated. They are based on pre-built templates, many hours of recorded video, and data. As the individual browses, they are offered videos that are instantly personalized according to the consumer’s behavior/history and the retailer’s goals. Videos can be shown on a retailer’s own site, or used to re-target to shoppers as they visit other sites. The ads can be based on the last product viewed or purchased, and site visit metrics can also be incorporated to determine the value of the potential customer, and what to show them. These videos are built through libraries of brief video clips or scenes, along with narration, that can all be tailored based on analytics. Office Depot and AT&T are marquee clients for SundaySky.
So, while we have all been followed around the Internet by the "pair of khaki pants" we looked at once, it seems that Internet ads and product videos in particular are getting smarter, and that this could lead to an improved experience for the consumer, where they will actually want to watch more advertiser/retailer videos, because those they have seen have been tailored to their wants and needs.
- Product Videos Nudge Apparel Shoppers Toward Register – emarketer.com
- 7 Ways to Maximize SmartVideo Engagement on Product Pages – info.sundaysky.com
- SundaySky Personalizes Video, Ads for AT&T, Office Depot, others – www.beet.tv
Do you see online videos becoming an increasingly important marketing tool for retailers? Are personalized “smart” videos a game changer?