Video Commerce: Selling Online with Video

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Streaming Media West presentation by Justin Foster, Alison Jeske and Jon Nordmark

Streaming Media West presentation by Justin Foster, Alison Jeske and Jon Nordmark

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  • 1. Justin Foster, Founder, Video Commerce Consortium Alison Jeske, Director Product Management, Jon Nordmark, Founder & CEO, Xavier Casanova, Founder & CEO, Liveclicker
  • 2. 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 launches Social Marketing Friendster founded
  • 3.
    • “ Will It Blend” over ~100MM views and counting
  • 4.
    • Self-Produced Videos: build credibility, add value, humanize the experience
  • 5.
    • Acquire content from customers
    • Build a trust relationship
  • 6.
    • 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
  • 7.  
  • 8.
    • Alison Jeske
    • With a decade of experience in eCommerce, Alison Jeske has worked in customer acquisition, retention and customer service aspects for online retailers. Alison is currently Director of Product Management for, inc., where she is responsible for defining site strategy, and implementing new site features to deliver an exceptional personalized shopping experience.
    • Prior to joining Jeske was a senior member of the eCommerce team at Cingular and AT&T Wireless.
    •, inc. (NASDAQ:DSCM) is a leading online retailer of health, beauty, vision and pharmacy products. Our portfolio of brands include:™,™ and™. All are accessible from and provide a convenient, private, and informative shopping experience while offering a wide assortment of more than 30,000 products at competitive prices.
  • 9.
    • Past : Launch of new 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
  • 10. Pop up window displays video
  • 11.
    • Present : New tools and expansion of video into
        • Partnered with Liveclicker to provide rich tools for driving that intersection of video and commerce
        • Launched w/ Liveclicker in July
        • Launched 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!
  • 12.
    • Liveclicker tool provides many features:
    • ’ 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
  • 13. Over 30 videos on Still early to determine the basket (order value) impacts
  • 14. Other exciting metrics – newest video with a 94% continue to watch past 10 sec mark; 42.5% watch whole video
  • 15.  
  • 16.
    • 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!)
  • 17.  
  • 18.
    • Jon Nordmark, Founder & CEO
    • >$100MM 2007 revenues
    • Growing 25%+ annually
    • Launched video in early 2008
      • Initial pilot on video site
      • Later rollout to brand and product pages on
  • 19.
    • Put existing assets to use
    • The most engaging medium for selling
    • Provide a richer customer experience
    • Drive new traffic through video SEO
  • 20.
    • Leverage supplier content
    • Access professional quality assets; low cost
  • 21. 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%
  • 22.
    • Launched in 2008
    • Prominent SEO placement
    “ Conversion rates increased. Plus, we quickly validated the SEO pilot.” - Jon Nordmark, Founder & CEO,
  • 23.
    • Future:
      • Continue producing video assets
      • More experimentation testing “demonstration” vs. “promotional”
      • Lean on suppliers and customers for new video content
  • 24.  
  • 25.
    • Largest and fastest-growing consortium of interactive marketers seeking to learn about and advance the use of video in e-commerce
  • 26. Justin Foster, Founder, Video Commerce Consortium Alison Jeske, Director Product Marketing, Jon Nordmark, Founder & CEO, Xavier Casanova, Founder & CEO, Liveclicker