Watch This!The Online Retailer’s Guide toVideo Merchandising Success
table of contents• Introduction .............................................................................................
Watch This! � 1IntroductionIn 2010, we launched groundbreaking research highlighting theimpact of video merchandising on r...
Watch This! � 2Why Video Matters More than Everto Online RetailersBefore we jump into the research, let’s review some tast...
Watch This! � 3Why View Rate MattersThe key metric here is View Rate (VR). Expressed as a percentage, VR is the ratioof Vi...
Watch This! � 4Research ResultsIn this study, we reviewed video view rate data over a three month periodbetween March 2012...
Watch This! � 5  Hypothesis 1:Larger Calls to Action Increase View Rates.                                                 ...
Watch This! � 6 Hypothesis 2:Video above the fold garners greaterView Rates than video below the fold.                    ...
Watch This! � 7 Hypothesis 3:Adding video with a text call to action(“Click to play,” “Click to view”)increases view rate....
Watch This! � 8 Hypothesis 4:View rate declines with an increasingnumber of elements competing forclicks on the page.     ...
Watch This! � 9Beyond Merchandising:Solving the Online Retail Video ProblemBy this point, you’re likely to agree that vide...
Watch This! � 10                 Strategy - One of Stephen Covey’s Seven Habits is to                 “Begin with the End ...
Watch This! � 11SummaryVideo has many clear benefits for online retailers, which are maximized when the video ismerchandis...
Watch This! � 12References1   comScore. ‘comScore Releases April 2012 U.S. Online Video Rankings [Press release]’. May 18,...
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Invodo watch this_2012

  1. 1. Watch This!The Online Retailer’s Guide toVideo Merchandising Success
  2. 2. table of contents• Introduction .............................................................................................. 1• Why Video Matters More than Ever to Online Retailers ...................... 2• Why View Rate Matters .......................................................................... 3• Research Results ..................................................................................... 4• Beyond Merchandising: Solving the Online Retail Video Problem ... 9• Summary ................................................................................................. 11• Talk to Us ................................................................................................. 11• About Invodo ......................................................................................... 11• References ............................................................................................. 12 www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved.
  3. 3. Watch This! � 1IntroductionIn 2010, we launched groundbreaking research highlighting theimpact of video merchandising on retail websites. It was the firststudy of its kind, providing a guide to best practices for brands andretailers who wanted to increase online retail video views and,therefore, increase video impact. We at Invodo used this data tocreate and implement video strategy for our clients.However, a lot has changed in a short two years. Do the originalhypotheses still hold, and what has shifted? What new insight is outthere that enables retailers to improve their online video strategy?We visited data from a subset of Invodo client product pages, andwe’re pleased to present the results of our updated research. www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved.
  4. 4. Watch This! � 2Why Video Matters More than Everto Online RetailersBefore we jump into the research, let’s review some tasty third-party statistics toremind ourselves why we should care. Comscore reports that in April 2012,nearly 85% of the US audience viewed online video1, and Cisco claims thatvideo now accounts for over half of all web traffic2.The average viewer watches21.8 hours of video per month, nearly twice the amount as in 20101. Thesenumbers show the rapid shift from the first screen, the television, to otherscreens, including computers, smartphones, and tablets.Video continues to shine in e-commerce, and was named a key digital trend for2012 by eMarketer3. 76% of marketers planned to increase their video marketingefforts in 20124, and with good reason: research shows that video works fore-retailers. Consumers who view product videos are 85% more likely to buyaccording to Internet Retailer5. Additionally, numerous sources havedocumented significant conversion rate increases, which can be attributed tothe fact that videos educate consumers with product information andspecifications, engage the 60-70% of shoppers who learn visually or audibly6,reduce cart abandons, and reinforce your brand through increased consumerloyalty and differentiation. Fewer returns and improved SEO are also clearbenefits7. Increased Conversion Rate Improved SEO Reduced Cart Reduced Returns Abandons www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved.
  5. 5. Watch This! � 3Why View Rate MattersThe key metric here is View Rate (VR). Expressed as a percentage, VR is the ratioof Views (number of video plays) to Impressions (number of pageviews). Tomake it very simple, a 5% VR means that if a webpage with a video was served100 times, end users chose to view some portion of the video 5 times.Assume that a particular product page on your site receives 100,000 hits permonth. The product costs $100 and currently converts at 3%, generating$300,000 in monthly sales. Let’s say that a video is added to the page, and theconversion rate for video viewers is 6%. That’s a big jump, but it only holdsweight if a significant number of people actually watch. If your VR is 1%, theproduct’s monthly sales total increases to $306,000. However, if the VR is 5%, themonthly sales total increases to $330,000. That’s a compelling difference,especially when hundreds more product pages are added to the mix. VR has acompelling effect on revenues site-wide, so it’s important to make your VRs ashigh as possible for the greatest impact. Higher View Rates Increase Revenue $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 0% 2% 4% 6% 8% 10% www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved.
  6. 6. Watch This! � 4Research ResultsIn this study, we reviewed video view rate data over a three month periodbetween March 2012 and June 2012 from a wide range of our online retailerclients, including Sports Authority, Verizon, Moosejaw, Lenovo, and many more.How can an online retailer maximize video View Rate?We tested our hypotheses and found the following results. www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved.
  7. 7. Watch This! � 5 Hypothesis 1:Larger Calls to Action Increase View Rates. Size Impact on View Rate Calls to action come in many different shapes and sizes, and can vary widely based on each retailer’s preferences. We thought small CTAs, images less than a 5,000 pixel dimension (if image height x image width = area), might suffer in comparison to larger CTAs, but we 8.14% wanted to run the numbers to verify or disprove that claim. 4.07% Small Large The data confirms the hypothesis. Large CTAs generate a VR of 8.14%, more than double that of the 4.07% for small CTAs. This means increasing the size of the CTA makes the single greatest impact amongst all other hypotheses we tested. Something to consider is that a smaller CTA often lacks the flair that a larger image has room for – they are frequently less colorful, lack text, and have less detail overall. We’ll do further research here. Exactly what makes a larger image so much more successful? Is it really all about the size, or is it some detail within the image itself? Actionable Recommendation: Ensure that your call to action is large enough to attract the consumer’s eye. Then, make it bigger. It makes a difference. www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved.
  8. 8. Watch This! � 6 Hypothesis 2:Video above the fold garners greaterView Rates than video below the fold. Placement Impact on View RateThe concept of “above the fold” Above the Foldoriginates in the newspaper industry and 5.24%refers to the choicest location on the frontpage - visible when the newspaper isfolded in half and displayed face up onthe newsstand. In web design, the termrefers to the portion of a webpage that isvisible without scrolling. Of course, theexact location of the “fold” differs basedupon browser and monitor resolution. We 3.43%looked at websites in 1366x768, 1024x768and 1280x800 – the top three resolutionsaccording to StatCounter.com whichtogether comprise 50% of all resolutions Below the Foldworldwide.Not surprisingly, this proves true. Video achieves an average VR of 5.24% above the fold,over 1.5 times greater than the 3.43% for video below the fold.It’s important to consider the explosion of smartphones and tablets. Mobile web usageincreased fivefold in the past two years, and now accounts for over 10% of all web traffic8.The fold looks quite different on a handheld device than on a computer, and mobile usersfully expect to scroll through webpages. This means that while the fold still matters, the exactlocation of the fold is increasingly elastic. Even in the constantly changing scope of theinternet, retailers who place video calls to action above the fold will continue to receivebetter view rates and, therefore, more sales. Actionable Recommendation: Focus on premier placement for your videos by getting them above the fold. www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved.
  9. 9. Watch This! � 7 Hypothesis 3:Adding video with a text call to action(“Click to play,” “Click to view”)increases view rate. Impact of Text Call to Action on View RateJust as the salesperson bags the deal by 6.16%asking for the business, the onlinemarketer increases conversion by asking “Click to Play”for the click. That’s the idea.But there are calls to action and calls toapathy – some videos have more thanjust a play button, but stop short of an “Video” 0.50%actionable request. Examples of thisinclude text that says “video” or “videohere.” No Text CTA 4.75%The theory holds, with a VR of 6.16% for videos with a text call to action (CTA) versus 4.75%with an image only. Interestingly, calls to apathy are 12 times less likely to be played thanvideos with very clear text CTAs. It seems that a play button is more widely interpreted as aninvitation to watch a video than the simple statement that a video exists. Actionable Recommendation: When possible, include a text call to action (“click to view” or similar) with the video player, but take absolute care to affirm that it makes a clear, actionable request. www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved.
  10. 10. Watch This! � 8 Hypothesis 4:View rate declines with an increasingnumber of elements competing forclicks on the page. Impact of Competing Elements on View RateThe common-sense rationale is that clicks are 7%a zero-sum game: the more elements on a 6%page that compete for a click, the less often 5.97% 5% 5.76%any one element actually gets clicked. Inanalyzing the number of competing 4% 4.39% 4.22%elements, we excluded global headers andfooters since we believe users are focused on 3%the center of the page if they are actually 2%interested in the product. 1% 0% 6-10 11-15 16-20 21+The results of this hypothesis are a little different than we originally expected. Though pageswith fewer than ten elements have the highest VR overall at nearly 6%, it appears that VRotherwise rises as the number of elements increases. This suggests that online shopperschoose video when they need help making sense of large quantities of information. Weknow that videos convey messages in a simple manner, which ultimately satisfies consumer’scravings. Actionable Recommendation: Try to incorporate videos on pages with as few competing elements as possible. However, if a significant amount of information is necessary for a product page, add videos to help visitors make decisions. www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved.
  11. 11. Watch This! � 9Beyond Merchandising:Solving the Online Retail Video ProblemBy this point, you’re likely to agree that video benefits online retailers, andthat merchandising videos as an integral element of each product pagemaximizes those benefits. So what stands in the way of launching a videoprogram? Adding video requires four distinct competencies: Strategy,Content, Platform, and Network. Video Strategy Session Pre-Production . Best Practices Production Optimization Post Production SEO Content Social & Management Mobile Hosting & Streaming Syndication Measurement www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved.
  12. 12. Watch This! � 10 Strategy - One of Stephen Covey’s Seven Habits is to “Begin with the End in Mind.” Doing so ensures that you head in the right direction from the outset. When key stakeholders agree upon what defines success,Strategy alignment with key business goals is maintained . throughout the journey. Content – As with any content marketing initiative, first consider the audience, message, and desired viewer response. That will help create the roadmap for the type of content you need. Creating content requires the right equipment and a substantial degree of expertise. If youContent acquire it from third-party sources, you’ll need to focus on moderation to ensure a consistent experience and brand message. Platform – How will you host and stream video content across your site? Site experience, implementationPlatform flexibility, and SEO should all be taken into consideration when selecting a platform, but perhaps the most important thing to evaluate is measurement capability. If driving increased sales is your primary goal, you’ll want a video platform capable of measuring sales and conversion impact along with customer engagement. Network – Now that you have your videos, how do youNetwork implement them in a way that strengthens your whole business? Videos don’t have to be limited to the website’s product page. Social, mobile, and email provide additional reach for your videos. Video can also be used in-store on monitors and kiosks, as a consumer engagement piece with QR codes and near-field technologies, or even on a store associate’s handheld device. All four elements are needed for a successful eCommerce video program. Successful implementations can lead to higher video view rates and, therefore, increased conversions and sales. www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved.
  13. 13. Watch This! � 11SummaryVideo has many clear benefits for online retailers, which are maximized when the video ismerchandised appropriately. Key elements of that merchandising include keeping CTAslarge enough to matter and asking for the click, placing valuable content above thefold, and understanding the quantity of information on your product pages andimplementing video accordingly. Given its popularity, communication potential, andattractiveness, video can be expected to outperform text, still images, and othertraditional elements. That leads the savvy online marketer to make video an integralelement on a page.Talk to UsWe hope that you find this information useful, and we’d certainlyenjoy your comments and feedback. Get in touch with one of ourexperts by e-mailing us at marketing@invodo.com, calling us at1-800-280-4122, or commenting on the Invodo blog athttp://invodo.com/blog.About InvodoInvodo offers the expertise and tools businesses need to develop and implement ascalable, high-impact video strategy. Invodo’s closed-loop video platform is proven toenlighten customers and influence behavior, leading to higher sales conversion rates,reduced returns and increased site traffic. The Invodo platform improves productionworkflow, enhances SEO and collects integrated analytics to optimize ongoing videostrategy. For more information, please visit www.invodo.com. www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved. More Questions? Reach us at 1-800-280-4122 or visit www.invodo.com
  14. 14. Watch This! � 12References1 comScore. ‘comScore Releases April 2012 U.S. Online Video Rankings [Press release]’. May 18, 2012.2 Cisco. ‘Cicsco Visual Networking Index: Forecast and Methodology, 2011-2016’. May 30, 2012.3 eMarketer. ‘Key Digital Trends for 2012’. December 15, 2011.4 Social Media Examiner. ‘2012 Social Media Marketing Industry Report’. April 20125 Internet Retailer. ‘Inside Search’. March 31, 2010.6 Carbo, K. Dunn, R. Dunn. Teaching Students to Read Through Their Individual Learning Styles. 1986.7 eMarketer. ‘Video Usage in eCommerce: The Best is Yet to Come’. January 2009.8 StatCounter. ‘StatCounter Global Stats: Mobile vs. Desktop from Jun 2010 to Jun 2012’. June 2012. www.invodo.com | © 2012 Invodo, Inc. All Rights Reserved. More Questions? Reach us at 1-800-280-4122 or visit www.invodo.com

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