Video Email Marketing in 2009Facts, Stats, Limitations, Possibilities2009 Liveclicker Video Commerce Webinar Series, Part III of IIIAugust 12, 2009Lisa HarmonPrincipal and Co-Founder, Smith-HarmonChair, User Experience Roundtable, Email Experience CouncilPresident, Email Marketing Best Practices RoundtableJustin FosterCo-Founder & VP Market Development, LiveclickerFounder & President, Video Commerce ConsortiumFounder, Email Marketing Best Practices RoundtableTweet about this webinar using #videoemailFollow us on Twitter! @lisaharmon, @videocommerce

Upcoming EventsEmail Marketing Roundtable, Video Commerce ConsortiumLargest consortium of interactive professionals dedicated to advancing the art and science of video commerce @ www.video-commerce.orgLargest roundtable of email marketers dedicated to peer-to-peer exchange of email marketing best practices @ http://groups.yahoo.com/groups/emailroundtableFree Membership!Shop.org Annual Summit, Sept. 21 – 23“40+ Specific Things You Can Do to Make Money Next Week”Email Marketing Roundtable: “Video and Email Marketing”StreamingMedia West, Nov 17 - 19“The Quiet Revolution in Video Commerce”

About the PresentersLisa Harmon – follow @lisaharmonPrincipal and Co-Founder at Smith-HarmonChair, User Experience Roundtable, Email Experience CouncilPresident, Email Marketing RoundtableCurrently working on the following initiatives:Pushing email strategy and creative to optimize subscriber experience and program performanceLeading the EEC Email Design Roundtable in it’s efforts to share email creative best practices with the industryWorking to better integrate email into seamless cross-channel experiences Justin Foster – follow @videocommerceCo-Founder & VP Market Development at LiveclickerFounder & President of the Video Commerce ConsortiumCurrently working on the following initiatives:Actively studying the impact of video on e-commerce performanceBuilding Liveclicker and the VCC into world-class resources for professionals seeking to advance video for commerceCommunicating the value of video commerce through case studies, whitepapers, webinars, industry reports, events, blogging, and general industry thought leadership

Lisa Harmon – follow @lisaharmon

Principal and Co-Founder at Smith-Harmon

Chair, User Experience Roundtable, Email Experience Council

President, Email Marketing Roundtable

Currently working on the following initiatives:

Pushing email strategy and creative to optimize subscriber experience

Leading the EEC Email Design Roundtable in it’s efforts to share

Working to better integrate email into seamless cross-channel experiences

Justin Foster – follow @videocommerce

Co-Founder & VP Market Development at Liveclicker

Founder & President of the Video Commerce Consortium

Currently working on the following initiatives:

Actively studying the impact of video on e-commerce performance

Building Liveclicker and the VCC into world-class resources for professionals seeking to advance video for commerce

Communicating the value of video commerce through case studies, whitepapers, webinars, industry reports, events, blogging, and general industry thought leadership

PollTake Our Poll: Why are you interested in video for email?A– Differentiated inbox experienceB – Boost subscriber engagementC – Drive key metrics (CTR/CVR)D – Innovate / experimentE– Just curious right now / not sure

Top Concerns re: Video in Emailn = 287. Registrants attending “Video Email Marketing in 2009” 8/10/2009

Attitudes re: Video in Emailn = 287. Registrants attending “Video Email Marketing in 2009” 8/10/2009

Expertise re: Video in Emailn = 287. Registrants attending “Video Email Marketing in 2009” 8/10/2009

Facts, Limitations, Possibilities

Why Video in Email?The promotion of video in email has grown because…Rising access to high-speed Internet has created a shift in how people desire to consume content onlineThe expense of creating and hosting video is fallingVideo viewing increases engagement by adding context to products and building brands“Video in email can increase clickthrough rates by as much as 2X – 3X” - David Daniels, VP, Principal Analyst, Forrester ResearchMay 4, 2009

Rising access to high-speed Internet has created a shift in how people desire to consume content online

The expense of creating and hosting video is falling

Video viewing increases engagement by adding context to products and building brands

Why Video is Relevant?As the email channel matures, so do email subscribers: simply receiving an email is no longer the novelty it once was. It’s become necessary for email marketers to differentiate themselves in the inbox by using more thoughtful strategies and tactics.Video brings an exciting “third dimension” to what’s traditionally been a two-dimensional experience.

As the email channel matures, so do email subscribers: simply receiving an email is no longer the novelty it once was.

It’s become necessary for email marketers to differentiate themselves in the inbox by using more thoughtful strategies and tactics.

Video brings an exciting “third dimension” to what’s traditionally been a two-dimensional experience.

4 Ways to Deliver Video in Email“The results are conclusive – the only reliable way to embed video in email is through the use of animated .gifs”2009 Campaign Monitor Video in Email StudyJanuary, 2009

2009 Campaign Monitor Video in Email Study

January, 2009

What Methods Have You Tried?Take Our Poll: What Methods Have You Tried?A– Static ImageB – Optimized Video .gifC – Certified VideoD – Embedded Flash Video

Static Image with Video Call-to-ActionStatic Image:A static image simply features a still of one of the frames of the videoUse strong visual cues to indicate video presence to encourage subscribers to click through to web-hosted video.PROS: Compatible with nearly all mail clients No learning curve Established best practicesCONS:It’s not really video in email Subscriber must click through for video and audio

Compatible with nearly all mail clients

No learning curve

Established best practices

It’s not really video in email

Subscriber must click through for video

Video .GIF v. Animated .GIF1999:Animated .GIF2009:Video .GIF

Video .GIFVideo .GIF:A video .gif uses a compressed,streamed animated .GIF to delivervideo-quality content.PROS: Compatible with most mail clients (~75% - 90%) Displays video directly in email Does not cause ISP blocks Does not require the end user to download the video prior to viewingCONS: No audio Works most places, but not everywhere Limited player controls Requires enabled images Production and delivery expense

Compatible with most mail clients (~75% - 90%)

Displays video directly in email

Does not cause ISP blocks

Does not require the end user to download the

No audio

Works most places, but not everywhere

Limited player controls

Requires enabled images

Production and delivery expense

Certified VideoCertified Video:GoodmailSystems is rolling out its CertifiedVideo service.PROS: Currently the only solution in the market providing full-motion audio and video directly in email without clicking to landing pages Inbox placement guaranteed Works regardless of whether images are enabledCONS:Only works at AOL (9, 10 clients, AOL Webmail) Additional cost for video delivery via GM partner Production expense

Currently the only solution in the market providing

Inbox placement guaranteed

Works regardless of whether images are enabled

Only works at AOL (9, 10 clients, AOL Webmail)

Additional cost for video delivery via GM partner

Production expense

Email Client Support for Video, by Inclusion Method

Email Client Market ShareEmail Client Market Share Report, FingerPrintApp. September 2008.

ISP Support for Video, by Inclusion Method Top 23 US ISPs by Subscriber, Q3 2008. Alex Goldman.

Browser Support for Video .GIF, by Market ShareAll browsers are not created equal. Video .GIF playback compatibility is dependent on the underlying user agent of the web browser or mail client.Browser Version Market Share. Net Applications. 8/10/2009.

Which email clients block images by default?LEARN MORE:Certified Email (Goodmail): Unblock images at AOL, BT, Yahoo, Telus, Cox, ComcastCertification Program (Return Path): Unblock images at Windows Live Mail

Certified Email (Goodmail): Unblock images at AOL, BT, Yahoo, Telus, Cox, Comcast

Certification Program (Return Path): Unblock images at Windows Live Mail

Best Practices for Video .GIFsBest practices are still emerging for video .GIFs in email, but the following rules should be followed to maximize performance/experience.DO: Use video as a tool to create engagement and richer visualization, not as a subscriber distraction. Key takeaway: Use video as a primary call-to-action, rather than supporting visual element. Ensure the first frame of the video is acceptable for the ‘exception’ mail clients that show static images only.Key takeaway: Add call-to- action on the first frame of the video so Outlook 2007 will still display a meaningful image.

Use video as a tool to create engagement and richer visualization, not as a subscriber distraction.

Key takeaway: Use video as a primary call-to-action, rather than supporting visual element.

Ensure the first frame of the video is acceptable for the ‘exception’ mail clients that show static images only.

Key takeaway: Add call-to- action on the first frame of the

Best Practices for Video .GIFsBest practices are still emerging for video .GIFs in email, but the following rules should be followed to maximize performance/experience.DOPay attention to your video infrastructure. Key takeaway: 1MM email subscribers, 25% open rate, 5MB video can consume 1.25 million megabytes (1,250 gigabytes) of bandwidth in a single email campaign. Experiment with dithering and frame rate to reduce the bandwidth load required of the end recipient. Key takeaway: Reducing the number of colors per frame from 256 to 128 can reduce the size of a video .GIF by 25% without noticeably impacting output quality.

Pay attention to your video infrastructure.

Key takeaway: 1MM email

Experiment with dithering and frame rate to

Key takeaway: Reducing the number

Best Practices for Video .GIFsBest practices are still emerging for video .GIFs in email, but the following rules should be followed to maximize performance/experience.DO Measure audience engagement.Key takeaway: While engagement metrics for video .GIFs are not perfect, they are directionally useful and will give you new insight into your email audience. Consider technology for .GIF creation.Key takeaway: Unless you want to create 8 – 20 versions of a .GIF to account for the variances in compatibility in mail clients, and manually compress files, technology can dramatically automate the production of email video.

Measure audience engagement.

Key takeaway: While engagement

Consider technology for .GIF creation.

Key takeaway: Unless you want

Best Practices for Video .GIFsBest practices are still emerging for video .GIFs in email, but the following rules should be followed to maximize performance/experience.DON’T Make videos that require greater than 150kB – 200kB/ sec in data transfer to display properly.Key takeaway: Measure the connection speed of visitors on your web site to get an idea of % of your email audience on dial-up. Use video as a secondary or tertiary item in the email. Key takeaway: Go “all the way” or “not at all.” Otherwise, video can actually hurt your results.NEVER, EVER use Flash or Javascript to attempt to get video to play in email, unless you are using CertifiedVideo™ and sending only to an AOL audience.

Make videos that require greater than 150kB – 200kB/

Key takeaway: Measure the connection speed of

Use video as a secondary or tertiary item in the email.

Key takeaway: Go “all the way” or “not at all.”

NEVER, EVER use Flash or Javascript to attempt to get

ResultsResultsREI“Statistically significant” increase in CTR, CVR, AOV - March, 2009SAPIncreased CTR from 7% to 32% - January, 2009Olympus49% increase in CVR over several emails. - April, 2007eBags65.5% increase in sales in YoY test of video v. no video. - June, 2009

Key TakeawaysCertifiedVideo™ currently represents the truest incarnation of full video in email. However, its limited adoption by ISPs hinders usefulness for now. Video .GIFs, on the other hand, represent a step toward universal video in email coverage, yet technical limitations remain, like audio support. For today, when executing video in email campaigns, the recommendation for the highest quality and broadest reach of video in email is to combine CertifiedVideo™ where it works, supplement with video .GIFs where it does not, and take advantage of auto-image rendering at CertifiedEmail™ ISPs to broaden the coverage of video in email.

CertifiedVideo™ currently represents the truest incarnation of full video in email. However, its limited adoption by ISPs hinders usefulness for now.

Video .GIFs, on the other hand, represent a step toward universal video in

For today, when executing video in email campaigns, the recommendation for

Common QuestionsQ: How large are the video files? What’s the recommended size?A: Size isn’t really that important for video .GIFs, because the videos download progressively in the background once the user opens the email, even though they stream immediately. It’s much more important to ensure that the amount of bandwidth required of the end subscriber not exceed 150kB – 200kB/second, unless you know your audience can accept higher throughput. Q: How long should my email videos be?A: With Certified Video, length may be less of an issue because audio can be used to capture the attention of the reader. With video .GIFs, videos are typically no longer than 30 – 45 seconds. A best practice for longer videos would be to use subtitles or text displayed throughout the video to maintain attention.Q: How can I find out how much of my audience can view video?A: Check out FingerPrintApp.com. For less than $50, you can take a snapshot of your subscriber list on your next email campaign to determine what mail clients are being used.

Common QuestionsQ: How can I find out more?A: Your first call should be to your agency or ESP to check whether they’re already partnered with Liveclicker. If not, email sales@liveclicker.com.Q: I don’t know anything about making video. Where should I start?A: Liveclicker recommends starting out with an email design specialist with particular experience in using video in the channel. Smith-Harmon is one of many great options. Your ESP may also have some experience. Or email info@liveclicker.com for references.

Questions and AnswersLisa HarmonPrincipal and Co-Founder, Smith-HarmonChair, User Experience Roundtable, Email Experience CouncilPresident, Email Marketing Best Practices RoundtableJustin FosterCo-Founder & VP Market Development, LiveclickerFounder & President, Video Commerce ConsortiumFounder, Email Marketing Best Practices Roundtable

Video Email Marketing in 2009Facts, Stats, Limitations, Possibilities2009 Liveclicker Video Commerce Webinar Series, Part III of IIIAugust 12, 2009Lisa HarmonPrincipal and Co-Founder, Smith-HarmonChair, User Experience Roundtable, Email Experience CouncilPresident, Email Marketing Best Practices RoundtableJustin FosterCo-Founder & VP Market Development, LiveclickerFounder & President, Video Commerce ConsortiumFounder, Email Marketing Best Practices Roundtable