Adobe White Paper

Video: How It’s Changing Online Shopping By Adobe Scene7 Marketing Video: How It’s Changing Online Shopping 1

Contents Overview: Shoppers’ Perspective 3 Retailers’ Perspective 4 Industry Support & ROI 7 How Can Adobe Scene7 Get You Immersed in the Video Trend? 9 Case Study: Shop Direct 11 Case Study: MEDION Electronics 13 Case Study: Road Runner Sports 15 Join the Conversation 17 About Adobe Scene7 17 Resources 17 Video: How It’s Changing Online Shopping 2

Overview: Shoppers’ Perspective Detail-hungry shoppers are in search of Web sites with rich media applications. And, despite the fact that fewer than one third of retailers currently offer online video (that number is expected to grow dramatically over the next 12 months), the number of individuals who watch retail videos has grown by 40% which represents 23% of all unique shoppers.** comScore has been tracking this growth noting that in July of 2008, 134 million Americans watched 11.4 billion videos…or more than 2 videos per user, per day. This represents 75% of the U.S. Internet population watching video! comScore’s data shows this isn’t a U.S.-only phenomenon either—26 million Germans watched 219 million hours of web video in August 2008 (118 videos per viewer)…27 million people in the UK watched more than 3 billion videos that same month…and more than 25 million people in France watched more than 2 billion videos in September 2008.∞ Not surprisingly, 82% of online video in the U.S. today is Flash-based (73% worldwide)—making it the #1 format for video on the web today.~ Flash offers publishers key benefits that other platforms can’t match and because the Flash Player is installed on over 98% of all connected desktops spanning all platforms and browsers, publishers can deliver video completely confident that it will be seen by their viewers in a consistent, high quality experience regardless of the viewer’s platform. This enables publishers to reach the largest audience at the lowest cost with the best experience. It reduces development and QA costs since video experiences no longer need to be encoded and developed multiple times for multiple platforms—all the while lowering customer support costs and upping customer satisfaction. Consumers do love web video—a lot. And not only do shoppers enjoy watching videos, videos have further closed the experience gap between the “touch and feel” store experience and the web. Videos can be used to even surpass the in-store experience by providing more detailed product information both visually and narratively than the typical sales associate. Videos are exceptionally suited for product demonstrations, showcasing products in use along with the related actual results, and for showing complex specific product details. As such, video has helped to justify the value of expensive products by explaining the unique features and benefits. Luxury purchases and bigger ticket items have seen an uptick in online interest and more and more, it is the compelling product video that serves as the final push that a consumer needs to make a purchase. Video: How It’s Changing Online Shopping 3

Retailers’ Perspective Retailers are recognizing the persuasive power of product videos and have put aggressive implementation plans in place for 2009. One of the biggest obstacles to video adoption however, particularly in this economy, seems to be the high cost. To get started quickly, experts agree to keep things simple using short talking points (no more than 2 minutes), use your own merchants or employees, and leverage inexpensive cameras and stages in your own offices. The feedback from our customers who have started using video typically is: 1) The products on which I post videos significantly outperform other products; and 2) I have figured out a cost-effective way to produce my videos (such as the list above)—and it was the right decision—it is less important to strive for ‘perfection’ in video production and more important to produce as many videos as possible. Thus, for those who have allocated the budget or have resources to produce the content internally, there can be great rewards, including higher sales, reduced return rates and fewer abandoned shopping carts. Some retailers are beginning to create videos that mix merchandising with entertainment. These merchandisers have realized the benefit of transforming the act of online shopping into more of an “event.” Among the percentage of retailers investing in video right now, some of the more forward-thinking merchandisers are creating video that breaks out of the proven feature- and benefit-oriented production style by blending culture and lifestyle with product offerings. An Internet Retailer article published in April of this year reported that Cloudveil, a producer of inspired mountain apparel, improved overall site performance and customer experience by using dynamic images and videos; reducing production time by more than 50 percent. Since the addition of Scene7, Cloudveil has experienced a considerable increase in the amount of time users remain on the site. This is largely due to the product-specific videos now featured on 20 percent of Cloudveil’s merchandise and 60 feature videos in the video gallery, including clips of extreme skiing interspersed with demos of key product features. Online conversion rates for products where shoppers watch the product videos are nearly two times higher than conversion rates on products where videos are not viewed. Additionally, the average order value for shoppers who viewed a product video is 19 percent higher. The true pioneers using video for e-tailing are the direct shopping networks like QVC, who have long integrated its product videos and live TV streams with the rest of its rich visual imagery online. QVC continues to push the integration of videos throughout its entire online experience, enabling visitors to access a variety of videos (i.e. what’s on-air at the moment, daily specials and best sellers) via navigation on the home page and easy buttons on central windows. On the product detail pages, QVC.com offers side-by-side options to view zoomable photos, video, color options and an opportunity to purchase the item. Thus, shoppers have, right at their fingertips, all of the visual information necessary to make a purchase decision, in a consistent merchandising experience. Video: How It’s Changing Online Shopping 4

In a 2008 Internet Retailer article on QVC.com’s use of video, it was cited that among the product categories that have benefited most from the use of video are consumer electronics and beauty products. A customer who has purchased a cosmetic product after seeing it demonstrated online by a host may find that she does not remember how it is applied once she has the product at home. Now, she can replay video from the show online or ask the host a question through a page devoted to the product line. JC Penney, another Scene7 customer, made a big push into video merchandising by launching a “Walk the Runway” feature with models showing off JCPenney clothing lines and offering interviews with fashion designers. This revolutionary approach to merchandising catapulted JCP.com into newsworthy strata. Video: How It’s Changing Online Shopping 5

Another side of video currently being explored by merchandisers is video created by consumers. In fact, user generated content (UGC) is changing the merchandising landscape rather dramatically. While few retailers are currently accepting user-generated video content uploaded directly to their Web sites, those that do stand to gain in many cases. It’s been proven that customers who take the time to submit videos, post blogs and participate in community forums are almost always evangelists who will act as brand advocates by recommending products to their friends and followers. Counter to what shoppers are like in the offline world, online, more people are keen to share a positive experience over a negative one. In a recent Universal McCann survey, it was found that good experiences outrank poor experiences two to one as reason to motivate sharing opinions. Also, good experiences were the top 3 reasons to “spread the word” to others. So, as more consumers become more comfortable with technology, they will continue to migrate from their status as mere spectators to being active participants and will be contributing more content than ever before. This will help those merchandisers open to the idea of incorporating UGC on their site because it’s been shown that consumers are drawn to Web sites with product reviews and opinion and a recent study has even cited that 36% of consumers surveyed validated that video product reviews enhance other forms of product information.◊ Consumers inherently trust the opinion of other consumers (far more than any marketing message) because they realize the consumer has nothing to gain (or lose) by posting an honest opinion of a product. While the prospect of letting users generate “honest content” may seem risky for merchandisers, the viral aspect of video works better and costs less than traditional advertising.∆ Retailers employing this tactic have reported that UGC serves to increase core shoppers’ time online—providing critical product information and insights highly valued by shoppers—thereby increasing overall conversions and revenues. Importantly, when managed with the appropriate publishing platform, video provides an even better overall customer experience. Instead of having users upload varying sizes, resolutions and formats, a solution like Adobe Scene7 will standardize every piece of uploaded content so that the viewing experience is consistent and even as dynamic as the merchant-driven content. This becomes a tangible metric that correlates to sales more than previously used social media tactics. By and large, shoppers are simply seeking better product information via rich media and user generated video reviews, are the newest, most useful and trusted form of product information emerging today. Several savvy merchandisers have leveraged video product reviews in the eCommerce world and have attributed higher conversion rates and increased customer loyalty as a result of it. Smarter.com launched their video reviews in February 2007 by including thousands of product reviews syndicated from ExpoTV.com Videopinion. Millions of Smarter.com consumers were able to see products in action and hear from real consumers about their personal product experiences, and Smarter.com’s video catalog is constantly refreshed by an army of smart, focused consumer creators.◊ ShopWiki launched their video reviews three summers ago by asking wiki editors (consumers like you and me) to contribute video reviews for cash incentives. These reviews have been instrumental in duplicating the experience of shopping with a friend; walking through key features, demonstrating the product and providing practical advice to help determine whether a product is right for you. Essentially you’re getting as much information (if not more) than you would be getting from a sales associate on the retail floor, only it’s coming from someone who isn’t trying to reach a monthly quota! ShopWiki video reviews are not ads or commercials— they are an objective and informative description of a product or category and consumers trust them. We are clearly on the cusp of a major video trend and progressive marketers are starting to use video in ways beyond the obvious product video demonstration. Video can be leveraged to engage shoppers and provide an added value—value that may mean the difference between a shopper choosing your site as the final destination, or continuing on in pursuit of more information. Video: How It’s Changing Online Shopping 6

Industry Support & ROI From analysts to mainstream media, and retailers to shoppers, the momentum into video territory continues to grow. The following are more specific industry trends: Penetration & Usage Trends ROI VIEWER PROFILE • More than 146 million U.S. Internet users (or 77% of the total U.S. Internet audience) viewed 12.7 billion online videos during November 2008 (an average of 87 videos per viewer). This number is up more than one-third over the same period the year before, according to data released in January 2009 by comScore Video Metrix. † • Today, more than three-quarters of U.S. Internet users view videos, and that number is estimated to rise to 88% by 2012. † • Universal McCann estimates that the three quarters of U.S. Internet users watching online video are watching it daily or every other day. ~ • 83% of worldwide Internet users are watching online videos (nearly 10% higher than U.S. viewers alone). ~ • 54% of online viewers will watch at least 60 seconds of online video per viewing. ~ • More than four out of five Internet users are expected to watch online video in 2012. ‡ U.S. Online Video Viewers* and Online Video Advertising Viewers**, 2007-2012 (millions and % of Internet users) Online % Online % video Internet video Internet viewers* users advertising users viewers** 2007 137.5 73.6% 111.4 59.6% 2008 154.2 80.0% 129.5 67.2% 2009 167.5 84.1% 144.1 72.3% 2010 176.0 85.7% 154.9 75.5% 2011 183.0 86.8% 164.7 78.1% 2012 190.0 88.0% 174.8 80.9% Note: at least once per month; *downloads or streams video (content or advertising); **views any form of video advertising in-stream, in-banner, in-text) Source: eMarketer, November 2008 099521 www.eMarketer.com VIDEO POPULARITY • Executives at winning Web retailers (those with sales growth exceeding the industry average of 3%) ranked expanded video capabilities second only to online behavior tracking as the most promising technology for engaging customers, according to a May–June 2008 Retail Systems Research survey that analyzed the online shopping experience.** • 42.6% of respondents queried during a 2008 pre-holiday-season survey said they were either adding or improving product videos in time for the online holiday shopping season, putting videos only slightly behind improvements to search but well ahead of customer reviews, a popular feature that online consumers often look for on retail Websites.** Video: How It’s Changing Online Shopping 7

Penetration & Usage Trends ROI (cont.) • An October 2008 Internet Retailer survey conducted after the beginning of the U.S. financial crisis found that video deployment was expected to remain a top priority for Web retailers despite the economic downturn.⁰ • Online video is currently taking and will continue to take consumer time share from other forms of media, with user minutes growing from 30 billion monthly minutes in 2007 to 200 billion monthly minutes in 2010 (according to Nielsen’s U.S. broadband projections).*** VIDEO GROWTH/SPENDING • Video continues to grow at a 40% year-over-year increase.** • Retail video viewers represented about 23% of total visitors to retail Websites in October 2008, up from 17% the year before.** • While only 36% of Web retailers have already deployed product and education videos on their Websites, 53.3% expect to do so within a year. And of these, 17.3% said they expected to do so in six months or less.** • Online video spending will reach $4.6 billion in 2013, up from $587 million in 2008 (a sevenfold increase). † • 66.8% of U.S. marketers plan to focus their online marketing budget on video in 2009. ‡ • Video is only trailing display ads and search with respect to trended spending until 2013. MERCHANDISING TRENDS • Nearly three-quarters of the Web retailers with video had fewer than 50 of them on their Websites. But of all the retailers with video, 87.5% expected to add up to 250 new videos within a year, and 10% planned to add 500 or more.** • Of the 35% of Web retailers using rich media, 21% are using video (IR survey)* • Over two-thirds of Websites that feature video do so for the purpose of providing greater product details* • Among the benefits of online video touted by Web retailers are lower number of abandoned shopping carts, reduced return rates and higher sales. ¥ • Adding video topped online retailers’ to-do list; at 43% it beat out product recommendations and reviews. ¥ Advanced Site Features and Functions that U.S. Online Retailers Plan to Add This Year, October 2008 (% of respondents) Video or streaming media 43.3% Personalized product recommendations 40.0% Customer reviews and ratings 36.7% Product con guration 35.0% Alternative payments 33.3% Blogs or forums 31.7% Advanced search 30.0% Gift registry or wish list 21.7% Order status 21.7% In-stock availability 16.7% Community 15.0% Other 18.3% Source: Internet Retailer, “Website Design, Content and Rich Media” conducted by Knowledge Marketing, January 2009 100847 www.eMarketer.com Video: How It’s Changing Online Shopping 8

Some examples of retailers’ claims, reported in Internet Retailer over the past year, include: • Ritz Interactive, camera and consumer electronics retailer: Video was a big reason for a 36% uptick in year-over-year sales through June 2008. • ShopNBC, online arm of its shopping channel: Customers who watched videos on product detail pages converted at twice the rate of customers who did not. • Ice.com, Web-only jewelry retailer: It experienced a 40% rise in conversion rates on products highlighted in online videos. By showing its products on models in videos, which puts the size and appearance of jewelry in better perspective, Ice.com reduced the return rate on some products by 24%. • Ross-Simons, jewelry retailer: Videos reduced return rates by about 10%, representing a significant cost savings. How Can Adobe Scene7 Get You Immersed in the Video Trend? Although the primary barriers to video adoption continue to be high cost and time in production, there are also concerns around the costs associated with editing and distribution. Many companies lack the resources and expertise to efficiently put their video content online and are relying on multiple, non-integrated third-party solutions to support their publishing workflow; including relying on internal IT groups for the management, publishing and streaming steps in the process. Typically the result is lack of schedule and quality control, inefficient processes and high costs. Scene7 eVideo Streaming solution offers an end-to-end on-demand video publishing platform to easily and cost-effectively add product video to Web sites, online advertising, training presentations, email, and in-store kiosks—driving conversion rates and online sales. To maximize return on investment, Scene7 offers the highest quality, most scalable and cost-effective video options in the industry today. Key features include: • End-to-end hosted eVideo publishing for “non-technical types” • Upload, manage, and stream videos (e.g. ads, demos, training, UGC) • Add popular video (e.g., MOV, AVI, FLV, F4V, MP3, MP4) & audio file formats (e.g., MP3, AAC, WAV) • Transcode using Adobe Flash Media Encoding Server to standard flash formats for web delivery, supporting international broadcast formats, NTSC and PAL and popular codec formats H.263, VP6, H.264 • Manage & search original as well as transcoded videos in Scene7 Publishing System • Optionally build Video Recuts, using Adobe Premiere Express, to add various special effects, titling, captions, endcaps, etc. to target a specific promotion or campaign • Add ‘clickable’ video hotspots to any Recut clip/caption/graphic to provide call-to-action links to purchase or for more relevant information • Select a viewer preset from Scene7’s Video Viewer Preset library in standard sizes/codecs, or configure your own • Single video and video set viewers/players (video sets new for Fall 2009) • Multi-media viewers with combinations of dynamic media (including images, videos, SWFs, spin, audio, etc.) (new for Fall 2009) • Innovative grid and carousel layout viewers (SWF, FLV) (new for Fall 2009) Video: How It’s Changing Online Shopping 9

• Playback via Adobe Flash Media Server streaming using a CDN partner Scene7 customers experience the following ROI benefits: • Reduce time and costs to publish and stream online videos • Ideal for non-technical video publishers • Eliminates multiple third party solutions for same video workflow • Standardize on Flash for delivery to any channel • Easily enhance video to highlight features and targeted promotions • Highest clicked on feature • Up to 2X higher conversion rates • Increase average order value up to 19% Let Adobe Scene7 Inspire You With Customer Case Studies Our customers are terrific examples of how partnering with Adobe Scene7 can differentiate and enhance the shopping experience on your website; leading to an increase in conversion and sales—even a reduction in returns! Take a look at the following case studies to get a glimpse at how three very different merchandisers overcame inherent business challenges and exceeded their goals using eVideo. Video: How It’s Changing Online Shopping 10

“We had heard amazing things about Case Study: Shop Direct Adobe Scene7 prior to working together—both from a solution Leading UK Home Shopping Retailer Drives Double Digit standpoint as well as ease of implementation. It was important Conversion with Adobe Scene7 eVideo to us to find a suite of solutions that could span all nine of our consumer- Industry: Apparel & Accessories, International facing properties and help us get rich Solution: eVideo content up very quickly. With Scene7 in place we immediately recognized Challenges: growth in conversion and the • Increase site conversion and drive sales with rich media content feedback from customers was • Leverage video to increase the amount of time a shopper remains incredible.” on the site • Differentiate and enhance the shopping experience to build brand - Neal Preece, eCommerce Director, loyalty and repeat traffic Shop Direct • Reduce the return rate (typically hovering in the 50% range for the fashion industry) • Present site visitors with the same “fun” brand online as is found offline Shop Direct, the UK’s leading online and home shopping retailer selling a huge range of fashion, footwear, home and leisure products, has annual sales of nearly $1 billion (USD) and five million customers. Selling all of the major brands, including Sony, Nike, Levi’s, Adidas, Phillips, Kodak, Dyson, Bosch, Amanda Wakeley, Morgan and Miss Sixty, they plan to double online conversion over the next three years. The Group is home to nine of the UK’s most successful home shopping and Internet brands including Littlewoods, and online sales have grown from 18% in 2006 to over 56% today and is on track to have 70% of its sales online by end of financial year 2010/2011. Best Practices: To support the expected growth of online retailing, Shop Direct Group has employed Adobe Scene7 to host more than 1500 30-second to several minute videos, ranging from runway and advertising to product demonstrations across their nine eCommerce sites. The implementation is complementary to the already well-executed rollout of Scene7’s Dynamic Imaging solution that included dynamic content sizing for all images and interactive detailed zoom and pan. As one of the first in the UK to add full screen product videos to showcase its broad apparel lines, these videos feature key fashion items, and include catwalk shows of products from popular brands such as the fast fashion brand, Love Label. Video: How It’s Changing Online Shopping 11

Shop Direct is actively bridging the touch and feel barriers of “distance selling” with these merchandising videos that help shoppers better visualize and understand the actual features of the product they are looking to purchase. These videos compliment the company’s use of rich imagery, telling a story to further convey the utility of any outfit, occasions to wear it, the fit and what body types certain garments are most suitable for. The unique implementation of video offers customers not only the option to view videos embedded in the product page, but also ‘full screen’ viewing of the video that brings the merchandise front and center on the page to fully engage customers in the shopping experience. Using Adobe Scene7, the leading on-demand rich media publishing platform, Shop Direct’s web team can easily upload Flash videos, and publish and stream via progressive download without any internal IT support. Shop Direct built its own Flash skins across all sites to create a custom look and feel for their video viewers, including a uniquely integrated tabbed zoom/video viewer. These skins were uploaded, configured and published through Adobe Scene7 services along with the video and high resolution imagery. Their success deploying online video is demonstrated by a double digit increase in conversion rates on the merchandise featuring videos on its leading brand site, Littlewoods.com. The full screen videos are one of the most popular features on all of Shop Direct’s sites and, with the overwhelmingly positive customer feedback, the company is planning to continue the number of products featured in videos and add the ability to share videos within the next year. Excitingly, Littlewoods brand was recently voted the top retail brand for the second year running in an online survey organized by the CBI North West, the Chartered Institute of Marketing (CIM), and legal firm, Hill Dickinson. They have been recognized for the growth of the brand over the last twelve months, including its use of rich media content to deliver a greater breadth of product information to consumers. “This demonstrates the strength of the Littlewoods brand over the past year. Despite tough economic conditions, we are seeing new customers coming to the brand everyday. I’m delighted for all our teams who have put in so much hard work,” Alison Broadhurst, Marketing Director. Littlewoods is merely one example of Shop Direct’s dedication to improving every aspect of the online shopping experience across all of their properties. They are truly committed to creating a customer-focused culture, which is at the very heart of every business decision. “We had heard amazing things about Adobe Scene7 prior to working together—both from a solution standpoint as well as ease of implementation. It was important to us to find a suite of solutions that could span all nine of our consumer-facing properties and help us get rich content up very quickly. With Scene7 in place we immediately recognized growth in conversion and the feedback from customers was incredible,” said Neal Preece, eCommerce Director, Shop Direct. Results: Shop Direct has recognized immediate ROI benefits from using Scene7 eVideo, including: • Reduced time and costs to publish and stream online videos • The elimination of multiple third party solutions for same video workflow • Centralized content in one system to be used across all brand sites • Standardization on Flash for delivery to any channel • Double digit conversion increases • Well-integrated solution that is complementary to product imagery • Video in two sizes, embedded in product page and full screen view for maximum viewing Video: How It’s Changing Online Shopping 12

Case Study: MEDION Electronics Leading Consumer Electronics Retailer Increases “We specifically selected the Adobe Conversions & Streamlines Global Media Management with Scene7 solution for our new Web-Shop Adobe Scene7 to achieve a realistic and engaging shopping experience for our Industry: Electronics, International customers. Simultaneously we were Solution: Asset Management, Dynamic Imaging, eVideo also able to streamline our internal processes – what more could we wish Challenges: for?!” • Improve online product presentation • Simplify image and video publishing - Stefan Metzger, Head of • Establish a central image management solution that enables eCommerce at MEDION AG eCommerce, marketing and product managers to control and organize their individual sections • Implement a rich media solution within a two-month time frame in order to launch new eCommerce platform MEDION Electronics is a leading German-based retailer of consumer electronics with global distribution in Europe, Asia-Pacific and the United States. As part of the introduction of a new e-Commerce platform, MEDION wanted to improve the presentation of their products through the use of rich media. At the same time, it also wished to simplify the administration and publishing of their product imagery and videos. In addition, rich media viewers for zoom and spin as well as the video player needed to be modified to fit the MEDION corporate design. Best Practices: Within a short, two-month time frame, the Adobe Scene7 solution was successfully integrated with MEDION’s eCommerce system and the MEDION team was trained on using the platform. Adobe Scene7 was able to fulfill all of the necessary requirements of the project with implementation support from IT solutions provider Getit. The Adobe Scene7 rich media platform dynamically generates all image sizes (thumbnails, category, list, shopping basket as well as product detail shots) from one single master image. All imagery is delivered on-demand resulting in significant time savings, reduced production costs and a quicker implementation. MEDION has significantly improved product presentation with Adobe Scene7 zoom viewers that are embedded in the product detail pages, which enable customers to see every product in great detail, as well as view alternate images. Also, pre-defined zoom views known as “hot spots” enable MEDION to point out important product features making the product imagery an even more valuable sales aid. Video: How It’s Changing Online Shopping 13

Product features and views that remain hidden in standard product shots can now be seen using Adobe Scene7 360 degree spin; and further information is also provided via product videos hosted and served by Adobe Scene7. These detailed views and videos enhance MEDION’s overall online experience and have eliminated the need for customers to download datasheets. Customers are now able to see items of interest in greater detail right on the product page and this has helped conversion because it has eliminated the element of surprise and disappointment from the transaction altogether. Additionally, using the Adobe Scene7 Media Portal, an add-on module to the platform, MEDION can centrally administer all the assets while enabling marketing and product managers to individually organise their own sections. This has provided enormous time savings as assets no longer have to be managed on an individual basis. Also, assets are available more quickly as suppliers are able to upload directly to the Adobe Scene7 platform through an easy-to-use self-serve interface. Results: “We specifically selected the Adobe Scene7 solution for our new Web-Shop to achieve a realistic and engaging shopping experience for our customers. Simultaneously we were also able to streamline our internal processes – what more could we wish for?!,” said Stefan Metzger, Head of eCommerce at MEDION AG. The Adobe Scene7 hosted media platform reduced the requirements on MEDION’s internal IT resources; and by selecting an on-demand solution, MEDION was able to leverage and implement Scene7 rich media within two months. The overall improved product presentation has increased conversion rates; and sales of products with videos and 360 degree views increased significantly compared to products displayed with just static images. Using Adobe Scene7 to centralize asset management simplified and unified the company’s internal processes resulting in significant time and cost savings. Also, with Adobe Scene7, MEDION assets are immediately available for use on all its web applications and portals. In addition, all content including high-resolution images and videos is consistently and quickly served internationally increasing overall conversion rates. Video: How It’s Changing Online Shopping 14

Case Study: Road Runner Sports “Only Scene7 could offer the breadth of capabilities we needed, from dynamic Road Runner Sports Extends Runners’ Education and zoom and sizing to an entire section of Lifts Satisfaction with Adobe Scene7 our site dedicated to educational video eVideo featuring running fundamentals, stretching, nutrition, gear essentials Industry: Apparel & Accessories, Shoes, Sports & Outdoors and injury recovery. We are now able Solution: eVideo to control all the rich media publishing in-house with minimal IT or external Challenges: vendor support and investment.” • Provide site visitors with valuable information that supports - Dan Kelly, VP of Information the desire to run Technology, Road Runner Sports • Increase the amount of time a shopper stays on the site • Differentiate and enhance the shopping experience to build brand loyalty A 26-year old privately held company, San Diego-based Road Runner Sports, Inc. sells its products through specialty mail order catalogs, a progressive e-commerce website and distribution centers in San Diego, California, and Columbus, Ohio. Additionally, they have neighborhood retail stores throughout California, Washington, Oregon, Arizona, Colorado, Maryland, New Jersey and Virginia, with more on the way. Not only known for its broad range of running shoes, apparel, and accessories, Road Runner Sports offers helpful advice from experts, shoe fit guides and tips, runners’ forums and more. Best Practices: Road Runner Sports was in search of a single rich media provider that could deliver all of its visual merchandising needs for the website. “Only Scene7 could offer the breadth of capabilities we needed, from dynamic zoom and sizing to an entire section of our site dedicated to educational video featuring running fundamentals, stretching, nutrition, gear essentials and injury recovery. We are now able to control all the rich media publishing in-house with minimal IT or external vendor support and investment,” said Dan Kelly, VP of Information Technology, Road Runner Sports. Jupiter Research has found that the demographics of online users who find video useful when purchasing products online skew male, slightly younger, and wealthier than average. Road Runner Video: How It’s Changing Online Shopping 15

has keyed into this phenomenon and achieved increased conversion rates and decreased returns since adding video along with other rich media tactics to their site. Road Runner Sports is also following best practices because it has been shown that sites featuring online video in conjunction with other visual tools address customers’ needs better.* Road Runner has used video to bring integral information for running enthusiasts, to the Web. Embracing the idea that information will draw people in (not overwhelm them and turn them away), Road Runner is a great use case for leveraging video to unite a community. The feedback on the site has proven the enthusiasm for this value ad is there: “Every element of your customer-company relationship is superbly addressed. Your Website is world class, your prices are competitive, and your passion for serving your clients is obvious. Your product and service are a tribute to your people and your leadership. Road Runner Sports is a beacon of hope in a world that seems to have shunned spirited service. You and your team have earned a dedicated customer.” Lt Col Mike Lightner, USAF, Camden, SC, 03/04/2009 “I’ve been a runner for a lot of years, but the Fit Expert was incredibly knowledgeable and offered some ideas I hadn’t considered…I’ve also started watching the videos on your website. Very, very informative! Thanks so much for your great service!” Ellen Jones, Holmes Beach, FL, 5/20/2008 Twenty-five percent of online users who find video useful when purchasing products online are social buyers and heavy researchers, and shoppers in this segment act as brand advocates, actively informing others of the products or Web sites they like and conveying retailers’ branding efforts. Video that has interesting content and creates a sense of engagement has greater pass along value, and sites that have video content are better referenced by search engines and social networking Web sites, which can translate into incremental traffic.* Road Runner has recognized some of the immediate ROI benefits from using Scene7 eVideo, including: • Reduced time and costs to publish and stream online videos • The elimination of multiple third party solutions for same video workflow • Standardization on Flash for delivery to any channel • Highest clicked on feature • Increased conversion rates and fewer returns “We’re excited to partner with an innovative market leader like Road Runner Sports,” said Doug Mack, CEO of Scene7. “Our hosted self-service rich media platform is geared to offer Road Runner Sports superior visual online customer shopping experiences, while offering the lowest cost of ownership and the highest ROI in the industry today.” Results: Scene7’s eVideo solution has made is possible for Road Runner to engage an enthusiastic audience and drive repeat traffic. Since implementing eVideo in conjunction with Dynamic Imaging and eCatalogs, Road Runner has increased sales and reduced production time & costs related to web visual merchandising. *Online Video for Retail, Jupiter Research, October 2008 Video: How It’s Changing Online Shopping 16

Join the Conversation We hope that these trends are useful to your business. We welcome direct comments, questions and feedback. Please post your comments to our blog at blogs.adobe.com/scene7. Or, email your comments or questions to us at Scene7marketing@adobe.com. About Adobe Scene7 The Adobe Scene7 hosted media platform is an industry-leading solution for e-commerce and multi-channel marketing companies worldwide to publish rich content to engage their audience and drive online business. Leading companies using Adobe Scene7 solutions include QVC, Harrods, Macy’s, Amazon, Office Depot, Polo Ralph Lauren, La-Z-Boy, Lands’ End, Blockbuster, Williams-Sonoma and Levi Strauss & Co. For more information about Scene7 hosted solutions visit www.scene7.com. Resources Analyzing the online shopping experience, Retail Systems Research survey, June 2008 Beyond videodrome: Managing and Valuing Enterprise Video content in the YouTube Era, Gartner, 4/14/09 ∞ComScore Research, May-August, 2008 ^Contentinople Insider: Online Video Syndication: Pushing Video to Pull Viewers, Light Reading, 3/31/09 Current and planned use of emerging technologies, Internet Retailer, August 2008 ~How Much Online Video Do Viewers Watch?, eMarketer, June 2009 ‡Marketers Eye Online Video in 2009, eMarketer, January 2009 †Online Video Growth Continues, eMarketer, January 2009 Quantifying the State of E-Commerce Video, eMarketer, 5/12/09 ¥ Retailers Take Note! Online Video Sells, eMarketer, January 2009 ∆Social Media and User Generated Content, Parks Assoc., February, 2009 The State of Retailing Online 2007, a Shop.org survey conducted by Forrester Research, Inc. *The Customer Shopping Experience Online, eMarketer, September 2008 ◊User Generated Content: Product Ratings & Reviews, eCommerce Optimization, 2009 ***Video and the Cloud: What Does YouTube Mean To You?, Gartner Research, March 2009 **Video Usage in eCommerce: The Best is Yet to Come, eMarketer, Jan 2009 ⁰ Website Design, Content and Rich Media, Knowledge Marketing and Internet Retailer, January 2009 © 2009 Adobe Systems Incorporated. All rights reserved. Adobe, the Adobe logo, Premiere, Flash, and Scene7 are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners. Video: How It’s Changing Online Shopping 17

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Adobe White Paper

by Chris Churchill on Aug 31, 2009

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Adobe White Paper — Document Transcript