Need an overview of video commerce and its growth in the last few years? This article talks through live and non-live shoppable videos as well as, importantly the video commerce platforms that enable it
Video Commerce uses video content to promote and sell products and services on the Internet. It’s hugely important for retailers as it presents the opportunity to go into depth into the product, give the shopper an experience of the product and ultimately the brand. In this article, we go through the elements of video commerce that are now the key driver in e-commerce growth today.
For context, consider how important TV advertising has been to drive awareness and consideration of products and brands. The richness of video really drives home consideration. Video has the ability to demonstrate a product in a detailed and entertaining way to the customer. Why wouldn’t you put video both on the home page of the site (to introduce the brand) and in product pages (to communicate product benefits). When you use video commerce approaches: conversion improves considerably when a video is present on a website (anywhere between 50% and 100% improvement in conversion)
Video commerce has become an important factor in e-commerce strategy and as a result, there is a huge amount of activity to support improved conversion through video. It brings some important benefits to e-commerce:
- Depth – a video conveys lot of information quickly to the consumer. Much faster than reading and more depth than a single image.
- Responsive – Videos produce consistently higher click through rates. People just like a moving picture!
- Easy to produce – with the use of high res cameras on smart phones. Video is ubiquitous – people inherently know how to shoot a film and can edit easily too. This has brought down the cost of professional video production
- Increased dwell time – by the mere fact that your video is 15 seconds, 30 seconds or minutes long, people stay longer on your site. Importantly, the themes introduced in the video can be explored by the shopper, on the website post viewing
- Higher propensity to purchase – it was mentioned earlier, but worth pointing it out again. People who view a video, have a far greater propensity to convert.
- Google results – one of the most popular search results in google are video searches. If you have video in your site, you will come up in more search results, have better rankings and more traffic
- Video is Social – good, well produced videos have people featured in them, explaining your product. People relate to this, get reassured and will probably share (see next point)
- More Shareable – people share videos. We see it in instagram, facebook, Twitter and Linkedin all the time. If it’s entertaining, it will be shared. Why wouldn’t you offer up entertaining video demonstrating your product!
So video commerce moves far beyond simply producing a video. It integrates product benefits, brand development and the resulting e-commerce journey into a shopping experience.
What is a shoppable video?
A shoppable video demonstrates or features a product in the video and then, importantly links to the product directly from the video. Shoppers can either purchase the product directly in that experience, or are linked directly to the product page on the e-commerce site. In some cases, the product is linked directly to the shopping cart for instant purchase.
The process of setting up shoppable video is straightforward. Products are tagged in the video, and links can be referenced from those tags. In some instances, there is image recognition, which does the tagging automatically.
Shoppable video has taken off – YouTube, Facebook and Instagram are heavy proponents of this tech. It works so ambitious e-commerce operations are taking advantage and getting sales. Beyond social platforms, shoppable video can be set up in any section of a website l.
Why has it taken off? It’s a seamless experience. brands who bring commerce and content closer together drive conversion at the most immediate point of consideration. Setting up shopping experiences that meet the viewers where they are, have the potential to unlock actionable user insight and empower brands to connect with shoppers through more meaningful interactions.
Live and non-live video shopping
The next distinction surrounds prerecorded, or non-live video commerce and live video shopping.
Non-live video is recorded, tagged and integrated into user experiences, be them on a website, social or video platform. This is great, it’s scalable and can be deployed en mass. It has a drawback – it assumes what the audience actually wants.
Live video shopping, or livestream shopping has audience interaction. Presenters, when live have the opportunity to understand in real time how people are reacting to the video. If it’s one to one, the presenter need only ask what the shopper wants to know and see. They can respond directly to their needs. As a result conversion goes through the roof. In a one to many scenario, presenters can pose questions and get responses by polls, direct messages, tweets – or can even gauge the response based on how many people leave.
You can see that the shopping experience merges into the entertainment space. the more entertaining the presenter, the more responsive they are to the audience, the greater the propensity to purchase.
What is a video commerce platform?
The next phase in the future of retail is the rise of the video commerce platform. A video commerce platform or a video commerce app, provides the technology wrapper around making video shoppable. There are several components to a video commerce platform:
- Discovery – discovery helps both the shopper and the retailer discover needs of the shopper. Once this has been identified, needs can be responded to via the delivery function
- Video delivery – videos need to be recorded and viewed. The platform needs to manage both components
- Product identification – perhaps key to the video commerce platform is the ability to tag products in the video. Once they are tagged, you can either immerse or convert from the identified or tagged products
- Immersion – immersion directs shoppers to more information on the product or even brand. This can be executed by sending links, text, imagery, more videos, augmented reality, calculators and so on. Anything that helps make decisions
- Conversion – the conversion component links customer to shopping baskets, ready for them to purchase in a seamless experience
So there you have it – video commerce is a rich area of opportunity for e-commerce and retail. It combines the richest, most engaging platform with the interactivity of e-commerce. Smart retailers are taking advantage of this new trend as it takes hold.
Confer With is a full featured video commerce platform, containing features that enhance the shopping experience for the customer. Consumers would describe it a video shopping platform. Learn how the Confer With video commerce platform works and how you can use it to engage with customers today.