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V-Commerce: The Rise of Online Video


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  • 1. + WHITEPAPER V-CommerCe V-Commerce The Rise of Online VideoFeaturing online video channels conceived, designed and managedby Adjust Your Set and powered by Brightcove.
  • 2. WHITEPAPER V-CommerCe 2Table of ContentsIntroduction: 2010 is the time to engage with v-commerce 3The Market Landscape 4Why Video? 5 Intelligent Content 5 The Acknowledgement Layer 6 The Engagement Layer 7 The Conversion Layer 8 Case Study: Marks and Spencer 8Creating Intelligent Content 11Online Video Platforms 13 Distribution and Syndication 14 Analytics and Measurement 14Measurable ROI 15Conclusion 16About Adjust Your Set™ 17About Brightcove 17©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 3. WHITEPAPER V-CommerCe 3Introduction: 2010 is the time toengage with v-commerceBy Linus Gregoriadis, Director of Research, eConsultancyOnline video can hardly be afforded the status of being a new medium amongst digital marketing and e-commerceprofessionals, however the speed and extent that this flexible channel is evolving often comes as a surprise to manywithin the industry.Across the board, the statistics are in favour of visual content online: IPTV viewing is consistently rising month-on-month and on-demand services are enjoying increasing popularity. Many successful online companies are emergingbased upon video content - ranging from the U.S.-based Hulu to the UK’s SeeSaw - and no one can deny the meteoricrise of user-generated video content across the Internet.Signs are pointing toward the fact that users are increasingly looking for engaging experiences online, and the morepersonal, the better. Customer engagement needs to be effective and consistent across all channels in which a brandis operating, and consequently, organizations are trying to understand the extent to which video plays a part in themarketing mix.Clearly, video can be used as an extension of engagement, but crucially, this goes much further than simply postingto YouTube or having static homepage players. Marketing in 2010 is about reaching beyond simply pushing messagesat people, as content needs to be innovative, relevant and compelling. And it comes as no surprise that those who aretaking the time and effort to ensure this are seeing outstanding performance results, which more often than not have adirect correlation with increased revenues.Recent technological developments mean that video already has spawned a sprawling range of tools available tomarketers and e-commerce professionals, yet the uptake has been slow despite a very obvious appetite amongst users.The likes of text overlays, hotspots, tagging, and video walls all ensure that e-commerce processes can be integratedinto video content, therefore creating a new, effective channel for direct selling.However, it needs to be highlighted that creating this kind of content is challenging. Despite online video becoming partof holistic marketing activity with the potential to engage users to a far greater degree than ever before, understandinghow to achieve this is difficult. Equally, there are numerous considerations to make in order to ensure that the correctmeasurement and tracking is in place – against an achievable objective – and in order to deliver both measurable andjustifiable ROI. This can be a minefield for a lot of companies.I’d suggest that those who are quick to engage will likely succeed in their video efforts, especially when e-commerceis tied directly into any activity, as opposed to generic branding efforts. This is explored and communicated in animpressively in-depth, coherent way in this document by Brightcove and Adjust Your Set™. Read it, learn from it andseize the opportunity that exists.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 4. WHITEPAPER V-CommerCe 4The Market LandscapeIt’s no secret that media consumption has drastically changed in the last five years, shiftingfrom mass market print and broadcast outlets to highly fragmented and self-selectedcommunities of interest across websites, social networks and devices. The shift hasintroduced significant challenges and opportunities for organizations across all industries,and particularly in the retail sector.Not only are consumer behaviors around accessing information and content changing, but so aretheir shopping habits. More and more consumers are shifting both their small and large purchasesonline as opposed to visiting traditional brick-and-mortar stores. In fact, according to MasterCardAdvisors’ Spending Pulse report for February 2010, online sales through retail websites were up 16.7percent year-over-year. Consumers today are also more empowered to make decisions and form theirown opinions about brands, products and services thanks to the rise of resources like product reviewwebsites and consumer-generated video content.As a result, today’s retailers are striving to find new ways to capitalize on shifts in consumer shoppinghabits and convert online shoppers into loyal buyers. Retailers are also developing new onlinestrategies to increase the total revenue per shopper and boost efficiencies across all parts of the retailexperience, such as reducing shopping cart abandonment and product returns. The result has been anexplosion of interest and innovation focused on online retail and website marketing strategies.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 5. WHITEPAPER V-CommerCe 5Why Video?As the Internet gets increasingly crowded, brands are searching for new methods todifferentiate themselves and increase consumer awareness of, and engagement with, theirofferings. Social media, affiliate models and SEO are among the ways being used to attractand keep the attention of consumers. But the most important and fastest growing of thesemediums is online video.The rise of broadband connectivity has caused the Web to shift from being a largely static entity toone where video has emerged as a pervasive means for communicating to customers online. Video-commerce, or “v-commerce,” as opposed to e-commerce, will become part of common marketingparlance in 2010, so any company wanting to connect in a significant way with an audience should beinvesting in video. According to comScore, brands using online video have seen lifts of anywhere from20 percent - 40 percent in terms of incremental buying.It is undisputed that the Web is a significant driver of influence over people’s behavior, whether fora political campaign, a charitable cause or a brand message. Of all the tools available to influencebehavior, video is ranked near the top for mass market communications.So if video is such a brilliant communication device, why is it not more ubiquitous on retail sites? Theanswer lies both in the way it is currently perceived, and the way it is currently used. At present, onlinevideo is largely perceived as an expensive stand-alone piece of content to be inserted into a website,with that content often originating from TV ads. To create compelling online video, an entirely new setof narrative rules should be followed for a more interactive, accessible and sticky type of content thatcan have high production values while at the same time highly cost efficient to produce.One of the most powerful aspects of the Internet is its ability to connect huge groups of people inshared experiences. How to successfully monetize this experience is still perceived as a black art, butvideo presents opportunities to do so.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 6. WHITEPAPER V-CommerCe 6Intelligent ContentDeveloping content for online involves using a selection of editorial/narrative production techniques,as well as taking functional and technical aspects into consideration.What is required is content that achieves engagement with the viewer on a deep level. We call this‘Intelligent Content,’ because it contains data that allows content to be delivered over a variety of sitesand platforms, and has built in calls-to-action that generate a response in the viewer. Online videoallows this bundling of creativity and technology together in a package that appeals to viewers, andmakes it a compelling proposition for marketers. Here is an example from showing the interactive buy buttons wrapped around the content to boost click-throughs to purchase pages. 
Intelligent Content is still in its infancy, but there are three defined genres of formats evolving. Each ofthese is aimed at generating a specific consumer response along the customer value chain, ultimatelyending up in a conversion. We have dubbed these the Acknowledgement Layer, the EngagementLayer and the Conversion Layer. Content aimed primarily at brand building – “The Acknowledgement Layer” Content aimed primarily at customer engagement – “The Engagement Layer” Content aimed at driving sales – “The Conversion Layer”Each of these types or “layers” requires a unique set of creative, functional and technical treatmentsin order to deliver on its core functions. As the online video industry matures, specific content formatswill increase exponentially.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 7. WHITEPAPER V-CommerCe 7The Acknowledgement Layer Content that is specifically about brand building can be used both on a marketer’s own site but also can be easily syndicated to third parties. 
Designed to build brand equity online, this layer seeks to connect For example, a brand could sponsor a major music event, butwith the consumer on an introductory level. In its purest form, rather than simply invite people to the event, it could broadcastthis content sits very much in the sphere of marketers rather than it live via its own website. The brand would be building equity ine-commerce professionals, but is a crucial driver to the more terms of consumer loyalty.product-focused sections of a website. Taking the example of O2, the brand already provides accessIt tends to be tied in with broader marketing themes such as to concerts for customers via a priority pass system. It wouldcorporate heritage or a cross channel marketing themes, and is be relatively easy for the channel to offer online concerts to allshot using the highest production values. It is well thought out in customers by allowing those who can’t get to the concert exclusiveterms of the brand story and the desired effect on the user. The access to the live experience via an own-branded O2 channel.content is widely distributed over multiple syndication points.Viral activity could also be included in this category. This idea harkens back to the 1950’s when major consumer brands actually had their own TV production units, like P&G,It is also the closest to a traditional TV advertisement, however the which originally created the soap opera. There will be a growth ofproduction process can be quite different. The content consists specially commissioned and sponsored programming by brandsof a range of short films, usually about two to four minutes long, showing this content via their own online media channels in orderwhich over time develop a conversation with the consumer. to capture and own the relationship with the audience. A good example of this is the success seen by Ikea’s “Easy to Assemble”The other difference between this type of content and traditional strand of programming ( thatTV spots is in cost. It is possible to shoot as many as 40 short films regularly garners more than six million viewers for each episode.around a particular theme for the price of a single 30-second TVad. And, by distributing online the media costs are significantly Without a doubt, it is all about capturing the hearts and mindslower or even free. Once engaged, the audience can then be of the consumer in order to develop a conversation. Once thatencouraged to get more deeply involved with the brand and dive conversation has begun, the consumer can then move into thefurther into what it has to offer. next layer of the journey where they become far more engaged with the brand.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 8. WHITEPAPER V-CommerCe 8The Engagement LayerAt this point the user recognizes the importance of the brand to their daily life, and through involvement with the brandthey gain recognition from their peers. This layer involves both building audiences, and building enough influence tostart the process of directly connecting those audiences with a purchase. The illustration shows a screen shot from Thomas Pink’s “how to guide” showing how to tie a Windsor Knot.The content works particularly well when it promotes social value in the brand. By encouraging viewers to engage with 
the stories beyond the corporate face and involving them in something meaningful, it also has the ability to raise theirprofile amongst their peers. So this content sits particularly well within social media websites.Popular videos found in this layer include “how to guides”, as seen on Thomas Pink’s site, e.g. “how to tie a bow tie”( This type of content works extremely well online as it imparts information of value, whichin turn increases the likelihood of people sharing it with others in their network. Consumers can satisfy their owninterest on a topic while gaining a better understanding of the quality of the brand. By sharing this content amongsttheir peers they raise their social value, courtesy of the brand. This builds loyalty and will convert customers into brandambassadors.The types of formats that are currently being developed to help engage consumers in this way include: How to guides and tips and tricks Ask the experts Popular opinions Humorous storiesIt is worth noting here that all of the above have been hugely popular on the Web since its inception, but it has usuallybeen consumers generating the content, not brands.You can expect to see significant growth in this layer very quickly as online video grows in importance, and as brandscontinue to adopt the methods of media businesses in order to deepen engagement with consumers and keep themcoming back for more. Through careful integration of interactivity around this content, it can be used to drive significantclick-throughs to the next layer, which is where final conversion occurs.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 9. WHITEPAPER V-CommerCe 9The Conversion Layer This image shows an e-commerce page with a product detail video pop up designed to provide greater clarity around the product to help boost conversions and reduce returns. 
The Conversion Layer is the point at which the consumer actually gets involved in the v-commerce process by clickingthrough to product-specific content that is highly focused on showing the product in the best possible light. It providesonly one function, and that is to allow customers to make an informed purchase decision. It comes with a range ofadditional functionality such as “add to basket,” 360° views, user comments and ratings, all aimed at enhancing thebuying process.These videos are the cheapest to produce, the shortest in length, and for most major retailers, the largest in volume.They are highly integrated into the retailers’ website including comments and ratings, stock levels, product informationfeeds, viral distribution tools, cross-sell and up-sell related videos, and ‘add to basket’ functionality.The kind of content formats used to deliver this experience include: 360° views of product Detailed product specifications Assembly instructions Customer service videos (returns policy, FAQs etc) Related cross-sells and up-sells Testimonials/customer endorsements Buying instructionsProduct specific content is generally the easiest to produce and the most cost effective, but this can scale with the unitcosts of the item. For example, a car may well have a significantly higher budget spent per film as the unit costs faroutweigh the additional budget required.In order to produce effectively, it is important that the production company involved has exceptionally well-definedprocesses to make sure that content can be filmed quickly and efficiently, as well as loaded onto a system capable ofhandling large volumes with minimal fuss.This is particularly true for retail, where products can come in and out of warehouses at incredible rates, so it is crucialto have a fast turnaround filming methods while maintaining high quality.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 10. WHITEPAPER V-CommerCe 10Case Study: Marks and Spencer 
Fig 1: m&s tVBaCkgroundMarks and Spencer has pioneered online video with ‘M&S TV’ ( – a great example ofv-commerce in practice, and proof positive that compelling online video increases sales. One year old in March 2010,M&S TV is delivering a new form of customer engagement, delivering longer dwell times, repeat site visits and asignificant uplift in conversions.oBjeCtiVesMarks and Spencer is known for its innovative online approach, and with online predicted to plateau in growth over thecoming years, the retailer was keen to find ways of growing its online business while retaining the customers alreadyvisiting the site. In addition to enhancing the experience, the channel had to ultimately drive sales.M&S TV was launched in March 2009 with a range of objectives, including: Raise the level of customer engagement on Illustrate the hidden stories beyond the shop floor, for example interviewing the people responsible for making M&S cakes, or the farmer who supplies the company with milk Provide an elevated customer experience by raising the level of information available around key product ranges Allow deeper insight into the company’s social and environmental responsibility programme, Plan A Streamline the shopping experience through sympathetic integration of e-commerce tools Raise awareness of the brand beyond Provide a deep range of content to the consumer that informs, educates and entertains Increase sales©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 11. WHITEPAPER V-CommerCe 11the solutionM&S TV is a collection of over 500 films divided into 12 channels. Each channel focuses on a particularcompany theme or business vertical, be it womenswear, menswear, home or the M&S sustainabilitypledge, Plan A. To maintain brand consistency, the channels are managed by a central commissioningteam consisting of staff from both M&S and Adjust Your Set. This team also plans future content andmeasures the consumer response. 
 Fig 2: marks and spencer tV homepageThe videos tend to be under two minutes long in order to fit the consumption patterns associated withbranded channels. In order to maximize engagement and conversions, links are weaved throughout theeditorial, and displayed prominently next to the player. Engagement levels are constantly measuredand regular refinements are made in order to improve the quality of the editorial and the rates ofconversion. For example, if the channel manager sees that users are dropping off significantly withinthe first 10 seconds, the content will be examined in order to understand why this may occur. Similarlyif viewers are dropping off before the end, or certain links are not being clicked, then further changesare made.The type of programming that works best on M&S TV draws the viewer in to the experience andencourages them to interact with the site, rather than simply sitting back and watching passively.To do this, the editorial style of content production for M&S TV is more akin to “visual radio” ratherthan “TV on the Web.” Visual radio adopts many of the broadcast techniques of radio but with addedpictures and clickable elements. Radio DJs are always encouraging listeners to send in emails orphone in or text for a competition. The language used is highly inclusive and all about interaction,drawing the listener in and painting pictures with words. Increasingly this style is crossing over to TV,in particular on news bulletins when users are asked to send in their opinions or pictures/videos of aparticular story.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 12. WHITEPAPER V-CommerCe 12the solution (Continued)M&S TV uses those same techniques, but instead of telling peopleto click, interaction is driven via visible cues, delivered by theappearance of clickable links next to the video. This closes the gapbetween the call-to-action and the reaction, driving a significantincrease in conversions without detracting from the quality of thecontent.For particularly busy periods such as Christmas 2009, a range ofclips shot for M&S TV were re-packaged into pre-roll ad placements,and targeted to online media titles frequented by the M&Saudience, including The Sun, GMTV, BSKYB, Hello and so on. Thisprocess turned these publishers into a point of mass syndication,further extending the reach of the brand. Click-through from thesebespoke ads shot specifically for online achieved rates of over 5percent, which is up to five times the industry average for pre-roll. Fig 3: video player with integrated click to buy buttons to the right of the player.Finally, in order to start the conversations within social medianetworks, M&S TV developed a stripped-down version of its videoplayer, complete with click-to-buy links, and embedded it intoFacebook. Customers can view content as a shared experienceamongst their peers, discuss what they like and don’t like, and evenclick-through to the M&S purchase pages from within Facebook.In the future, M&S hopes to get more involved in communityshopping initiatives online, as it is a great way to work withcustomers to deliver the right kind of products in the right way.resultsM&S TV has been a huge success. More than three million minutesof content has been viewed, and delivered the following results: Three times as many product views when supported with 
 video m&s tV player embedded into Facebook page complete with click to Up to twice as many repeat visits by customers who watched buy links for e-commerce. M&S TV as opposed to those visiting the site alone Up to twice as long dwell time for customers who watch M&S TV as those who don’t Average uplift in basket size roughly 23 percentIn order to explain this in more detail we have created a film thatillustrates many of the points mentioned above. To see that pleasesee the following link on the Adjust Your Set™©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 13. WHITEPAPER V-CommerCe 13Creating Intelligent ContentIn order to produce impactful video content, there are a number of considerations to betaken into account, not just in the creative execution but the technical ones too. The mainareas of consideration when producing intelligent content are as follows: The creative treatment The production quality The distribution pathways The technical environment The metrics to be measuredHere follows a breakdown as to how these considerations are applied within the three layers outlined earlier.The information shows the considerations required for a typical online retailer, with variations being defined for other verticals includingautomotive and luxury. Over time, these layers will form a blue print to help merge creative and technical processes together intochannels complete with predictable return on investment metrics.Production considerations for the acknowledgment layer:Acknowledgement content tends to be the most expensive to produce, can often be widely syndicated to multiple platforms, and hasgenerally low interactivity but maximum reach. It also benefits most from broadcast standard production values where possible. While itis better if this content is shot bespoke for the Web, brands will often substitute made-for-TV ads here, but distribute them online ratherthan on TV alone. FaCet Considerations Creative Identify the big stories about the brand, key messaging and company-wide themes. Low level calls to action. Production High-value, professional cast and crew. HD-quality filming, multi-camera shoots, outdoor locations and studio facilities. Distribution Wide syndication to major web destinations, mainstream media partners and web portals. Also email in boxes and Ad networks. Technology High volume traffic, integration to third-party distribution services, widgets, multi-bit streaming for high-quality playback, advanced analytics for distribution reporting, manual playlists, ad servers, direct email products and multi-platform distribution (mobile phone, outdoor, internet TV etc.) Metrics Consumer reach, recall, returns to main site and brand reputation.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 14. WHITEPAPER V-CommerCe 14Production considerations for the engagement layerThis content is in the mid-price range to produce, and what distinguishes it from the other layers is that it is largely concerned withgenerating activity online, engaging users within social networks, influencing consumer behaviour and encouraging those consumers tointeract in some way. FaCet Considerations Creative Interrogate the product to find the stories within, create films that generate social value in the user, and help promote conversation and sharing amongst peers. High levels of calls to action. Production High - mid production values, some handheld, professional crew with a mixed cast of professionals, brand ambassadors and public, single and multi- camera shoots, predominantly in-store and studio locations. Distribution Focused distribution to main website, social media sites, and big media- branded content relationships. Technology Integrated click-to-buy and other interactive functions, deep linking of content, dynamic playlists. Syndication tools, alongside links to Twitter, Facebook etc Metrics Dwell time and drop offs, engagement metrics, reach analytics, no of clicks to product pages, related videos and customer journey analysis.Production considerations for the Conversion layerThis is generally the lowest cost to produce and for many retailers involves high-volume production-line techniques. Often formats forthe products will be defined beforehand in order to impart the most information to the consumer while filming in the most automatedway. This is all about helping the consumer reach an informed decision to allow them to buy something they really want, and reducingreturns due to dissatisfaction. FaCet Considerations Creative Product-focused, 360° views, close-ups, audio descriptions, product demonstrations, related products, aftercare. Production Mid - low production values, heavily automated, turntables, rapid turn- around. Distribution Mainly on retailers’ own site. Technology Integration to analytics, e-commerce functionality, comments, ratings, sharing tools (eg. get code, email a friend, send link etc.), cross-sell and up-sell tools. Metrics Products sold, products returned, quality of comments, ratings, related product views.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 15. WHITEPAPER V-CommerCe 15Online Video PlatformsWith a strategy in place and a plan for how you want to create and use online video, youneed to address the key challenges around publishing, distributing and monitoring yourvideo content.Today, there are many options available to integrate online video The online video platform you select should have the followinginto a website, including solutions that organizations build in- capabilities:house, or simply posting video content to a destination site likeYouTube. YouTube is an extremely powerful and effective means for Streamline the upload and management of online video contentgenerating awareness around an organisation’s video content, but easily – whether you have a few video clips or thousands of fullit is much less effective in delivering a true in-shop experience. episodes, online video platforms help you upload, manage, and organize your entire media library.On the flipside, organizations that build their own solutions forpublishing and managing their video content often underestimate Create and publish players customized to the specific needsthe complexity and reliability issues associated with running of your site and your brand – take control of the vieweran effective video business. To stay ahead of the fast-changing experience and develop bespoke experiences to let your brandonline video landscape, in-house solutions also require a continual shine refresh and staff training as the industry develops. Enable viral sharing and distribution to build communityMany e-retail organizations and their agencies are instead choosing around your content – find new viewers and expand your reachto develop their v-commerce initiatives on top of a proven online by delivering your video through social networks and third-video platform, such as Brightcove, which provide on-demand party with all of the capabilities required for simplifying the Provide analytics that allow you to monitor and optimize videomanaging, publishing, distributing and measuring of high-quality initiatives – identify your best content and discover audienceonline video across the Web, Internet-connected TVs and mobile behavior with comprehensive built-in analytics and reports.devices. By removing much of the underlying technologicalcomplexity to delivering online video, the platform allows Deliver high quality user experiences and a highly-reliablecustomers to focus on the important aspects of the service such service – protect your content while ensuring the best possibleas developing, managing and measuring compelling customer quality across every device and bandwidth profile.experiences.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 16. WHITEPAPER V-CommerCe 16Distribution and SyndicationAs the volume and demographic profile of the people who access online video changes, organizationsshould experiment with a variety of online distribution strategies. To develop a video distributionstrategy that fits your v-commerce goals, it is essential to fully understand the range of optionsavailable. Viral distribution The most open form of online video distribution. You can allow viewers to publish content anywhere on the web by acquiring a publishing code, sharing via email, or posting directly to a blog or social network like Facebook. The key benefit of this strategy is to increase the velocity at which your content is shared and discovered online by viewers, who can then be easily drawn back to your own website. managed syndication Under this model, you or your agency can create your own audience network by selecting a set of trusted affiliates who push your content within their site or application. Managed syndication relationships can take various forms and can range from small partners to major portals. mobile distribution More and more organizations are placing emphasis on delivering their video content across three screens – personal computers, televisions and mobile devices. Organizations of all sizes are seizing the opportunity reach new audiences and deepen viewer engagement, particularly on mobile devices. As a result, it is important that e-commerce organizations have a solution in place that is able to streamline the delivery of video content across three screens, as well as to social networks and third party websites.From viral and three-screen distribution to advanced syndication, online video platforms give youcomplete control over which distribution strategies you choose for each piece of content you publish,as well as offer a unified platform for delivering the best possible video experience across both PCsand devices such as the Apple iPad.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 17. WHITEPAPER V-CommerCe 17Analytics and MeasurementToday’s online retailers must measure everything to ensure they are generating the highest value inthese low margin times. This is especially true when it comes to online video. It is imperative thatyou are able to identify your best and most effective v-commerce initiatives and discover audiencebehavior toward your video content.Online video platforms have a range of tools to help you provide comprehensive analytics and reportsthat help track drop-offs and player interactions, monitor performance bandwidth and utilization, andintegrate with other leading analytics and audience measurement solutions like Omniture, GoogleAnalytics, TubeMogul and others.The chart below shows a simple set of analytics generated from the Brightcove platform that showswhere the organization’s viewing audience is located and how long the audience is engaged. Byintegrating this information into a retailer’s pre-existing website analytics, such as Omniture orWebtrends, retailers can also tell what products customers clicked on after viewing a video and ifthey actually went on to purchase the product.Analytics and measurement tools enable retailers to continuously fine-tune their online video initiativesto maximize formats that work, move away from ones that are not working, and ultimately providea better end user experience and drive increased sales. These analytics can be further developed byagencies to deliver bespoke reports such as detailed customer journeys and conversion metrics.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 18. WHITEPAPER V-CommerCe 18Measurable ROIE-commerce organizations and retailers that have been early to adopt a comprehensivev-commerce strategy and integrate their video content into the overall shopping experienceare already seeing substantial ROI from their initiatives. Though v-commerce is a relativelynew phenomenon, the noticeable increase in conversion rates, site-traffic, video-views andcustomer engagement, such as what M&S TV has generated, is hard to ignore.E-commerce websites and organizations are taking notice of how online video can help in increasing brand awareness,building online communities and fostering a more engaging sales process. As consumer demand for video in the onlineshopping process increases, it is likely that even stronger ROI metrics will emerge that help to drive the next level ofonline video adoption in the e-commerce and retail industry.In addition to driving conversions and customer engagement, online video also provides a host of other benefits forretailers: increased site traffic. Engaging online video content is a powerful tool in driving site traffic, particularly for organizations that are also syndicating their content to third-party sites and social networks improves the chances your customers will find you online. Video as part of an e-commerce online presence helps improve organic search engine ranking. Many online retailers have seen a substantial increase in their organic search results after adding product videos to their websites. Also, according to Forrester Research, on the keywords for which Google offers video results, any given video in the index stands about a 50 times better chance of appearing on the first page of results than any given text page in the index. greater prospect and customer engagement. Retailers who have used online video on their site have seen prospects and customers spend a greater amount of time on the site, a greater number of return visits, as well as a larger amount of unique site visits. Video has also been instrumental in increasing click through rates across e-commerce websites improved customer satisfaction. Retailers who have video on their site have seen customers make more informed purchases, resulting in fewer product returns and happier customers decreased merchandising and support costs. Fewer product returns and more happy customers equal a reduction in costs associated with returned merchandise and less burden on telesales staff. advertising cost savings. Online video content is much cheaper to produce than your typical television ad. Producing content specifically for online consumption also gives organizations more freedom and flexibility in the type, amount and length of content they want to create and can show significant increase in conversions over made for TV advertising.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 19. WHITEPAPER V-CommerCe 19ConclusionV-commerce gives you economies of scale – you can reach more people with moreengaging communications. It is cheaper than TV and yet the editorial and productionvalues are just as high. It’s an innovative, non-intrusive way of marketing, and because itdoesn’t feel like advertising, people are more responsive. All this, coupled with the fact thatv-commerce provides measureable ROI, makes a compelling case.How retailers interact with consumers is, and always will be, driven by the needs and desires of thecustomer, and those customers now expect more from a retailer’s website than just images – theydemand engaging and interactive content. However, technology is also driving the creative processand in-turn, the customer journey. For example, it is a fact that mobile apps will continue to flourishand give us handy help in ways we never even knew we wanted. And augmented reality (AR) will beubiquitous for the foreseeable future. AR is in its infancy, and currently has a lot of pitfalls, but oncethese have been ironed out it will have a spectacular impact on the retail industry.This paper shows that the benefits of using v-commerce are hard to ignore, particularly in the widercontext of smart phones, the iPad, faster broadband and the ongoing fusion of technologies.If you’re a retailer and you have no current or future plans to enter into the world of v-commerce andcapitalize on the appetite for online video, then you will miss out on one of the most compelling waysto engage with consumers, as well as a huge opportunity to see a significant uplift in sales.©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.
  • 20. WHITEPAPER V-CommerCe 20About Adjust Your Set™Adjust Your Set™ is a pioneer of brand television for the web.Throwing the old agency structure out of the window when thecompany was founded in January 2008, Adjust Your Set™ is a newbreed of agency specialising in V-Commerce – multi-platform videowith high production values to drive brand awareness, customerengagement and revenue for the likes of Marks & Spencer, ThomasPink, Sotheby’s, The Royal Opera House and agency provides an end-to-end service including brand,consumer and technical strategy; design and build of bespokeplayers; conception, creation, distribution and syndication ofcontent; channel management, analytics and technical support, aswell as e-commerce integration.The team is a powerhouse of skilled specialists from each corner ofthe industry with directors, producers, brand strategists, creatives,writers, designers, developers, programmers, digital strategistsand account management.Adjust Your Set™ closes the gap between content, the call-to-action and the action itself.Here are a few links to some of our work: Marks and more information, visit www.AdjustYourSet.TV or follow us onTwitter @AdjustYourSet.About BrightcoveBrightcove is a cloud-based online video platform. Media companies,businesses and organizations worldwide use Brightcove to publishand distribute video on the Web. Founded in 2004, Brightcove hasoffices across North America, Europe and Asia and customers in45 countries. For more information, visit©2010 Brightcove, Inc. and Adjust Your Set™ All Rights Reserved.