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State of Video in e-Commerce
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State of Video in e-Commerce

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In its recent research report, “State of Video in e-Commerce,” SundaySky, the leader in dynamically generated videos for optimized SEO and improved conversion rates, found that while most of the top …

In its recent research report, “State of Video in e-Commerce,” SundaySky, the leader in dynamically generated videos for optimized SEO and improved conversion rates, found that while most of the top Internet retailers are using video, few of them are using it in a way that positively affects the bottom line. For these retailers, video is window dressing when it could be a powerful force to drive SEO and, by extension, sales.

This report specifically references the video practices of top retailers including Overstock.com, Amazon, Apple and QVC.

Published in: Technology

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  • 1. State of E-Commerce Video Report
    September 2010
  • 2. Background and Methodology
    This report focused on the top 50 online retailers as published by Internet Retailer’s 2010 guide
    The research measures the current snapshot of video in the e-commerce market
    Online businesses have found that video improves the following:
    Amount of time spent on websites, repeat visitation, increased search engine ranking, etc.
    Search engine rankings
    Increased conversion rate to product sale
    Research Shows:
    The number of videos on each website, including type, etc.
    Implementation of these videos on the website
    Leading sources for e-commerce videos
    Methods for optimizing search engine results
    Best practices for YouTube syndication
    Best practices for video implementation strategies to maximize user adoption
    Confidential
    2
  • 3. Key Findings
    More than 65% of retailers use videos to some degree.
    Retailers currently not realizing video SEO potential: fewer than 10% have more than 10 videos indexed.
    The e-commerce industry is polarized on use of YouTube: 24% of retailers are not present on YouTube, while 30% have more than 1 million video views.
    42% of the top retailer sites have little to no video presence
    Confidential
    3
  • 4. Top 10 online retailers (by number of videos)
    Confidential
    4
    Number of videos on e-commerce sites
  • 5. SEO effect
    The top 100 retailers report that, on average, about 30% of their traffic is search-engine based.
     
    Confidential
    5
    Heat-map depiction of human interaction with search result pages shows that video-powered results draw users’ attention even when those are not the highest ranked result (though often they are).
  • 6. Additional SEO Substantiation
    Confidential
    6
  • 7. Who provides the videos?
      Considerations when choosing a video production service include:
    Cost – creating video content for websites can be costly when you consider manual production hours and the maintenance required.
    Ability to scale – videos must be applied to all products and categories in the catalogue to be effective.
    Easily updated – video content must reflect the dynamic nature of product catalogues.
    Quality of video – customers will respond to videos that are interactive, branded and engaging.
    Three, often complementary, options for video production are:
    Manual production
    Syndication of manufacturer videos
    Automatic video generation
    Confidential
    7
  • 8. Video delivery and management
    Our research indicates that the vast majority of videos are delivered from a content delivery network (CDN) and not hosted onsite.
    Akamai dominates the top 50 retailer list by a large margin, and we also see videos being served from Amazon’s cloud services (Either S3 or CloudFront), LimeLight and CDNetworks
    Confidential
    8
  • 9. Youtube presence
    YouTube has been the number two search engine since 2008 and is the fourth overall web property.
    There are two main objectives for online retailers to promote their videos on YouTube:
    1. Brand promotion
    2. Increase qualified traffic
    Confidential
    9
    Top 10 online retailers by number of Views on their Youtube channel
    Top 10 online retailers by number of videos uploaded to their youtube channels
  • 10. Conclusion
    The research presented here is the first of its kind trying to explore different impacts of online video on the e-commerce industry.
    What we have included:
    What retailers may hope to achieve by deploying videos
    What they currently achieve
    How they achieve goals and next steps for success
     Video e-commerce has moved from experimental to the scaling phase, however:
    There is a relatively small portion of top retailers who actually use video and exploit its potential to the maximum extent. This initial, limited adoption by retailers demonstrates the early stage of the market.
    Companies like Overstock.com and Nike have defined a clear and successful video strategy and are setting the stage for full industry adoption.
    Confidential
    10
  • 11. State of Video in Ecommerce: Q3’2010
    The second report in the series:
    Updates trends discussed in this report
    Highlights new trends and findings regarding the usage of video in mobile and in social media
    NOW AVAILABLE ON OUR WEBSITE!http://www.sundaysky.com/resources/state-of-video-in-e-commerce-q32010.html
    Confidential
    11
  • 12. About SundaySky
    SundaySky is the leader in dynamically generated video, enabling e-commerce businesses to reinforce their brands and drive website traffic by creating limitless, high-quality, always up-to-date videos to showcase products and services.  SundaySky’s software-as-a-service (SaaS)-based video generation platform helps customers personalize web experiences, enhance customer engagement and increase conversions, ultimately improving marketing ROI.  SundaySky is headquartered in Tel Aviv with a product and technology center there and a business center in New York. The company is funded by Carmel Ventures and Globespan Capital.
    Learn more at www.sundaysky.com
    12
  • 13. Sundaysky contacts
    Confidential
    13
    Yaniv Axen, co-founder and CTO
    Yaniv.axen@sundaysky.com
    SundaySky
    242 West 27th St., New York, NY 10001
    P: 212-929-8111
    Courtney Hurst, partner
    Metis Communications
    121 East Berkeley St., Boston, MA 02118
    P: 617-236-0500