Treepodia – The leading Product Video solution for e-commerce

This morning I read a great guest post on InternetRetailing by Sheila Dahlgren, senior director of marketing at Adobe Scene7.

Sheila explained the virtues of interactive videos and gave a few examples of vendors already using this technology:

…ONLINE dressing room KnickerPicker allows users to select models and lingerie styles, then zoom and spin to see all angles. Consumers choose the model which most closely resembles their body type to view from all angles how different styles of lingerie would look…

…US retailer JCPenney offers customers the ability to view a runway show and interact by grouping clothing styles, fast forwarding and viewing using a 360-spin and a zoom function.

…AN entertaining example of interactive video use can be seen on French mattress retailer Matelsom’s website. Consumers can select two models — people of all different shapes and sizes are available — and see how their chosen mattress performs when their models sit on, jump onto, or lie down on the mattress. This replicates the in-store experience and illustrates what people do (or would like to do!) when considering buying a mattress.

No doubt Interactive Video is cool

It’s obvious this type of interactivity is fun and cool. I’m even pretty sure the metrics are there to prove it gives ROI.

BUT… Interactive Videos are complicated too

Interactive videos are labor intensive custom tailored solutions that require the involvement of specialists. This means they have relatively long time-to-market, little scalability and high costs. As the examples Sheila provided prove they are currently a solution accessible only to the “big boys”.

Is the extra effort justifiable?

Considering “traditional” video enhancements for product pages are a proven method for double digit conversions increases, is the additional expense required for interactive video already justified?

Let me elaborate:
This morning I read on InternetRetailer that Shoeline.com reported a 44% increase in conversions on product pages enhanced by video. Sheila herself reports in her post that eBags.com saw 50%-139% increases in conversion rates for video enhanced pages.

These figures are very much in line with what we at Treepodia have been witnessing with our own clientèle (ice.com, diamond.com, eyebuydirect.com, etc.).

My point/question is:

• We know our clients getting these benefits from using our low cost, automated product video solution.
• We guarantee it can cover a vendor’s entire product catalog within 24 hours from initial contact.
• The effort required on the vendor’s part is nothing more than to supply us with their catalog’s XML.

When all this is taken under consideration, can the huge extra costs required for interactive video, in terms of time, money and complexity, be justified by substantially better performance metrics over “regular” or automated product video?
Image credit: http://bit.ly/4e9I3I

Recently I read an interesting post by Hi Jennifer Meacham on PracticalEcommerce.com titled “Innovative Video Use Increases Conversions for Merchants.” The post’s main theme is that using spokespeople videos on your site can be very effective.

Don’t mind me,
I’m just walking back and forth on your screen…

Although many of us find these types of solutions highly annoying (especially when they’re set as autoplay), online spokespeople are actually an interesting solution to the whole ecommerce-video paradigm. Their effectiveness builds on our brain’s predilection to trust human figures, and especially faces that talk to us.

Problems of Scale

There is a catch however: to maximize effectiveness you need to invest in creating a unique video of your model walking and talking while demoing EVERY item in your catalog. This is fine if you have a store that only sells a few items, but becomes highly impractical for any store that sells tens, hundreds, or thousands of items. The solution isn’t “scalable”.

Another scale related issue is the ratio between your model’s size and your product’s size. If your selling handheld items which are significantly smaller than a human being, your product would show up near invisible in comparison to your model’s body. Definitely a case in favor of having a talking head instead of a full body.

What to do? What to do?

I recently heard a pod cast by Jennifer’s PracticalEcommerce.com associate Kerry Murdock, who conducted with Faculte.com’s CEO Maher Hakim.

Maher advocates approaches that I tend to believe are more effective than the spokesperson model:

“Don’t spend a lot of money on producing the video… you can create really nice video by stitching together some photos & then putting in some music and audio and narration on top of that. It looks and feels like a video to the end user”

This is precisely what our ecommerce video solution does in an entirely automated fashion: In a nutshell we create product videos directly from an etailer’s XML, with little or no human involvement at all (narration still requires it). The automation of the process enables us to cover/handle an ecommerce’s entire catalog with video within 24 hours. Our low production costs also mean we can offer our solution on a Pay-Per-View basis that guarantees vendors see ROI for their videos.

Furthermore, we don’t simply create a single video for each product, but a few, for which we then run automated A/B testing for to measure optimal conversions – perpetually dropping the less effective versions.

We’ve learned with our own clients, that boosting product listings with video this way increases conversion rates by anything from 35% (for eyebuydirect.com) to over 300% (for certain product pages within Forzieri.com‘s site).

‘Tis the season to be conferencing

First we had Vegas (shop.org summit), then France (ecommerce Paris), then Germany (Mail Order World), and now we’re headed to the UK!!! London specifically – for eCommerce Expo 2009!

This is a great show for checking out all that’s new and exciting in the realm of online retail. So if you haven’t yet bought your tickets, we recommend getting in on the action.

Come see the magic

And once you’re there, we insist you come by and visit us at Stand 562, where you will have the unique opportunity to see our amazing Image Reviving Technology at work. Watch a live demonstration of our smart video platform transforming still images of your products into video, instantaneously. You can set up an appointment in advance, or just drop in.

Come hear the wisdom

While carousing at the show you’re cordially invited to join us for a special lecture given by our CEO, Tal Rubenczyk. Tal will be talking about “How to cover your catalog with videos in 24 hours”. He’ll be presenting on October 21st from 14:15 – 14:45 in the Digital Marketing Theatre. It’s an excellent presentation that covers the benefits of video for eCommerce sites and details the Treepodia advantage of affordable, full catalog coverage.

Looking forward to seeing you there!

A recent article in Internet Retailer states that:

“62% of U.S. adult Internet users watch videos on YouTube and other video-sharing web sites.”

Youtube, ranked by Alexa as the 4th most popular destination on the web and the 2nd most popular search engine, has recently announced it’s serving more than a billion views per day. A BILLION!

Check out the cool welcome clip Youtube offers newcomers:

What are the implications?

Simple:

• People are getting used to watching online video.
• People have come to not only enjoy online video, but to trust it as a medium.

Or In the words of Chad Hurley, CEO and Co-founder of YouTube:

“Clip culture is here to stay:
Short clips are voraciously consumed and perfect for watching a wide variety of content.”

What does this mean for ecommerce?

These high levels of acceptance and adoption are making video a de-facto must-have for eCommerce sites that wish to remain relevant in the online environment.

Quoting Internet Retailer again:

“Online video has emerged as a key component of successful online retailing that can not only engage consumers and lead to sales, but build store traffic and reduce customer service calls.”

The article gives examples of high-end, full productions videos such as Sears has done for back-to-school season with Disney star Selena Gomez but also delineates how different types of product videos, for different budgets, have proven effective for all level retailers.

…But video isn’t only for “the big boys”

You don’t need to be a mega store like Sears with a mega star like Gomez to see results from the addition of video.

A case in favor is EyeBuyDirect, One of the webs foremost suppliers of eyewear and a longtime Treepodia client, whose CEO Roy Hessel reports having:

“an overall 30% increase in product page conversion rates” with the addition of online videos.

We obviously think product videos are the way of the future for online retailers.
It seems however that we’re not alone…

Based on a survey published by InternetRetailer at the beginning of the year (2009), over forty percent of online retailers agree:

“…[The] survey finds that 43.3% of merchants will update their e-commerce sites with video this year, followed by 40% with personalized product recommendations, 36.7% with customer reviews and ratings, and 35% with product configuration tools…”

Video is #1 for 2009

Ecommerce sites are constantly looking for new ways to improve customer experiences in order to increase sales. While site optimization was listed as the number one reason for a site redesign, video is the number one feature these sites are adding.

Video is now considered even more lucrative than personalized product recommendation systems and customer rating/reviews tools!

Location Location Location

According to the article adding video alone isn’t enough. According to the CEO of retail web site design firm Tellus customer reviews and videos mustn’t be placed haphazardly:

“Customer reviews and product videos need to be grouped along with the other text and images on a page in a way that gives the shopper all the information they need to make an informed buying decision. Some retailers think the review or the video by itself will generate a bigger sale, but that’s a misconception. These elements have to be part of a well-balanced design that pulls shoppers in, gives them multiple ways to see and explore merchandise and then makes it easy to complete the purchase.”

Auto Optimization Auto Optimization Auto Optimization

As a leading provider of ecommerce video solutions we’re obviously very pleased with the results of this survey. We believe that the most significant contribution we offer to this industry above and beyond what is quickly becoming the common practice is the automated optimization of product videos that ensures the gradual but stable increase of conversions and sales.