Justin Foster, Founder, Video Commerce Consortium Alison Jeske, Director Product Management, drugstore.com Jon Nordmark, Founder & CEO, Ebags.com Xavier Casanova, Founder & CEO, Liveclicker

“ Will It Blend” over ~100MM views and counting

“ Will It Blend” over ~100MM views and counting

1994 first visitor eCom sales 1% of total retail 2000 2004 2008 1996 2002 2006 eCom sales 4.2% of retail $1M web sales first profit founded IPO bankrupt open to all Will It Blend video viewed 100M times Search Engine Marketing - CPC Overture first $100M revenue Email Marketing - CPM Digital Impact first email Affiliate marketing - CPA Commission Junction formed Banner advertising - CPM DoubleClick - first banner Video Commerce ShopNBC.tv launches Social Marketing Friendster founded

Self-Produced Videos: build credibility, add value, humanize the experience

Self-Produced Videos: build credibility, add value, humanize the experience

Acquire content from customers Build a trust relationship

Acquire content from customers

Build a trust relationship

Q: What is preventing you from starting out with video commerce or expanding your current video commerce initiatives? Source: Video Commerce Consortium Survey. July 7, 2008

Q: What is preventing you from starting out with video commerce or expanding your current video commerce initiatives?

Past : Launch of new Beauty.com site in November 2007 – included video Video library (self-produced and vendor videos) Brand boutique videos (e.g. Jonathan) Objectives: Increase basket size Increase time on site Provide enhanced shopping experience for prestige beauty customers What did we achieve? Basket size and time on site difficult to directly correlate to video viewing (new features also launched w/ new site) Positive feedback from customers

Past : Launch of new Beauty.com site in November 2007 – included video

Video library (self-produced and vendor videos)

Brand boutique videos (e.g. Jonathan)

Objectives:

Increase basket size

Increase time on site

Provide enhanced shopping experience for prestige beauty customers

What did we achieve?

Basket size and time on site difficult to directly correlate to video viewing (new features also launched w/ new site)

Positive feedback from customers

Pop up window displays video

Present : New tools and expansion of video into drugstore.com Partnered with Liveclicker to provide rich tools for driving that intersection of video and commerce Launched Beauty.com w/ Liveclicker in July Launched drugstore.com in September Monitoring SEO benefits Building out a video library Securing content from vendors Adding video into our product setup procedures Measure, measure, measure – analyze!

Present : New tools and expansion of video into drugstore.com

Partnered with Liveclicker to provide rich tools for driving that intersection of video and commerce

Launched Beauty.com w/ Liveclicker in July

Launched drugstore.com in September

Monitoring SEO benefits

Building out a video library

Securing content from vendors

Adding video into our product setup procedures

Measure, measure, measure – analyze!

What does video commerce look like to drugstore.com? ’ Buy’ just one click away Product links in video Sharing Rating of videos Comments Access to related videos/whole library SEO benefits Push to YouTube, Twitter, Google Video

What does video commerce look like to drugstore.com?

’ Buy’ just one click away

Product links in video

Sharing

Rating of videos

Comments

Access to related videos/whole library

SEO benefits

Push to YouTube, Twitter, Google Video

Over 30 videos on Beauty.com Still early to determine the basket (order value) impacts

Other exciting metrics – newest video with a 94% continue to watch past 10 sec mark; 42.5% watch whole video

Future: Broaden access to video throughout the site (product details pages; tutorials on new site features) Develop in-house videos (videos for our “brand”) Facility for customers to upload video Continue to monitor and analyze results (orders!)

Future:

Broaden access to video throughout the site (product details pages; tutorials on new site features)

Develop in-house videos (videos for our “brand”)

Facility for customers to upload video

Continue to monitor and analyze results (orders!)

Jon Nordmark, Founder, eBags.com >$100MM 2007 revenues Growing 25%+ annually Launched video in early 2008 Initial pilot on video site Later rollout to brand and product pages on eBags.com

Jon Nordmark, Founder, eBags.com

>$100MM 2007 revenues

Growing 25%+ annually

Launched video in early 2008

Initial pilot on video site

Later rollout to brand and product pages on eBags.com

QVC engagement Experiments within photo studio Put existing assets to use Not sure how to institutionalize it with existing resources Richer customer experience, SEO dominance

QVC engagement

Experiments within photo studio

Put existing assets to use

Not sure how to institutionalize it with existing resources

Richer customer experience, SEO dominance

Leverage supplier content (while thrilling them) Access professional quality assets; very low cost

Leverage supplier content (while thrilling them)

Access professional quality assets; very low cost

Group A – No Video Group B – With Video # Product pages served 25,000 25,000 Conversion rate (clicked play button) 6.63% 10.00% Conversion rate (watched entire video) 6.63% 15.84% Conversion rate increase (clicked play button) N/A 50.1% Conversion rate increase (watched entire video) N/A 138.9%

Launched in 2008 Prominent SEO placement “ Conversion rates increased. Plus, we quickly validated the SEO pilot.” - Jon Nordmark, Founder, eBags.com

Launched in 2008

Prominent SEO placement

Future: Good site experience = better conversion rates Continue producing video assets More experimentation Testing “demonstration” vs. “promotional” Placement on site pages Integration into marketing streams Lean on suppliers for more video content Introduce customer-generated video content

Future:

Good site experience = better conversion rates

Continue producing video assets

More experimentation

Testing “demonstration” vs. “promotional”

Placement on site pages

Integration into marketing streams

Lean on suppliers for more video content

Introduce customer-generated video content

Largest and fastest-growing consortium of interactive marketers seeking to learn about and advance the use of video in e-commerce www.video-commerce.org

Largest and fastest-growing consortium of interactive marketers seeking to learn about and advance the use of video in e-commerce

www.video-commerce.org

Justin Foster, Founder, Video Commerce Consortium Alison Jeske, Director Product Marketing, drugstore.com Jon Nordmark, Founder & CEO, Ebags.com Xavier Casanova, Founder & CEO, Liveclicker