French Shopping (Image Credit: http://www.flickr.com/photos/shibuya246)

Although France may have been trounced in the world cup not all the news coming from the land of baguettes and liberty is bad. It turns out that in terms of e-commerce revenues Q1 2010 wasn’t only great for our clients, as we discussed in our last post, it was excellent for online retailers in general, and nowhere more so than in France.

As a recent article in eMarketer quotes, according to FEVAD (Fédération du E-commerce et de la Vente à Distance), Q1 2010 saw a 30% increase in ecommerce sales over Q1 2009, valued at €7.2 billion (or $10 billion).

B2C E-commerce sales growth in France

What is powering this growth?

Much of this overall increase is attributed to the addition of some 16,000 online retail sites. But the growth is more than a matter of more stores, it also applies to overall basket value which was up to a healthy to €93 (or $129).

In addition, another factor is the fact that buying online is becoming more common in France. While the average consumer made 11 online purchases in 2009, already in Q1 2010 the average consumer has made four purchases online (at that rate online purchases would average 16 per year throughout 2010, representing an almost 50% increase over the previous year).

In other words, the French market is experiencing a positive overall trend with the combined factors of more online stores, more purchases made online at a higher value.

French growth set to exceed FEVAD expectations

While growth in the French market was anticipated this year (FEVAD predicted in the 24% range), if the current trend continues the numbers could far surpass what was expected.

While the largest online retailers (eBay, PriceMinister and Le Redoute) still garner the lion’s share of the pie, the overall growth trend is positive news for French online retailers across the board.

This positive trend also means there’s lots of room for ecommerce sites to expand and resume investing in the future of their businesses by updating and modernizing their sites to meet the developing demands of consumers.

Online retail is back on the rise!

According to a recent eMarketer article, the prediction is that this year (2010) ecommerce “will climb to more than $152 billion, up 12.7% year over year”. In addition, according to the US Census Bureau online sales grew by 14.6% in Q4 2009 (over the previous year’s sales), which means a positive trend is finally under way.

These gains, of course are reflective of the overall state of the economy, which is starting to pick up, as well as peoples’ desire to start purchasing again.

Online product research gaining in popularity as well

The number of people doing their product research online, of course is even greater. In fact, in the US, a whopping 162 million people are expected to do their pre-purchase research online this year, with over 82% of them ultimately making an online purchase.

That means, that in order to maximize your sales, you need to be everywhere they’re searching – and we can help with that.

Besides creating, hosting, and streaming product videos, Treepodia also has a service that uploads your videos to any and all of the major video portals (think YouTube, Google Videos, etc.).

Bottom-line

increasing your visibility online will ultimately increase your sales. This type of coverage will help not only in terms of SEO, but also in terms of reaching your clients wherever they are going to do their research, leading them back to your store to complete their purchase.

Contact us now for further details.

Image credit: http://www.flickr.com/photos/mobilestreetlife/4278659537

Although the show achieved icon status, and is rumored to be undergoing a Hollywood adaptation these days, we all know that it’s in fact it’s Moms who know best…

Moms – the Online Product Super Sleuths

With the economy being what it is, and increasing amounts of product information coming online daily, moms are making it their business to find out everything there is to know about the products their families intend to purchase.

In the super-competitive baby business recent years have seen a proliferation of sites dedicated to this very “pastime”, including a plethora of mommy-perspective blogs and review sites that share insights about new products, second hand products, and everything in between.

Consumer Reviews are Purchasing Catalysts

Product ratings and consumer reviews are extremely popular, and seen as a reliable source of information across the spectrum of consumers. Mothers of young children often see them as the definitive catalyst for making a purchasing decision. Today’s parents want answers not only regarding the product’s features and price, but also about its quality, safety, and overall customer satisfaction.

Or, as a recent eMarketer article put it “Moms Place Trust in Other Consumers.” So much so that the article states:

“[o]nline moms doing product research put their faith in descriptions from consumers nearly 12 times more.”

Most Moms Are Already Watching Product Review Videos

According to eMarketer’s article video has come to take a dominant position in swaying mothers’ decision making processes:

“Nearly 64% of respondents had watched a user-generated video review, and more than three-quarters of that group said it helped them make a purchase decision—either for or against a product or brand.”

There are two important points to note here:

1. It reiterates our recent post regarding the Treepodia Video Distributor and the need to have your products available everywhere customers are searching. In other words, for full coverage, you need to make sure your products come up in a search on any one of the major video portals.
2. It reinforces the reliability factor that video helps you attain. For example, one of our clients, BedBathStore.com, recognizing the fact that today’s parents conduct their research online, decided to add product videos to their entire line of children’s products. The results speak for themselves, with a 69% increase in sales of products that include video, an increase in product page engagement, and an overall growth in organic search traffic.

You don’t need mama to explain this one any further – product videos are another great way to reach today’s purchasing parents.

The reason I dislike Apple - The single button mouse

I’d like to start this post with two small confessions.

1. Although as a rule I try to stay abreast of the latest and greatest in technology and gadget news, I’ve never really been that interested in the mobile sector.
2. I never went gaga over the iPhone. I think this is mainly because I have an irrational bias against all things Apple dating back to the days they used to provide the Mac with only a single button mouse.

As much as I dislike Apple I give them full credit for changing the course of the mobile industry’s history. The launch of the iPhone in June 2007 created a paradigm shift that changed the way we all perceive mobile devices. In retrospect I think the iPhone fully deserves the title “Invention of the Year” bestowed upon it by Time magazine  in 2007.

iPhone – Trailblazer turned monopoly

The problem is that for too long the iPhone was unique. It was the only device of its type out there. It did an excellent job as a trailblazing pioneer in terms of changing our habits and perceptions as consumers but at some point the growth potential was stunted because of the iPhone’s monopoly.

Take me as an example. Silly as this might sound, I’ve avoided the joys of the smartphone world for nearly two years simply because partaking in the festivities would require me to buy an iPhone and mount the Apple bandwagon – something I haven’t been prepared to do due to my pigheaded and irrational dislike of the brand.

Instead, for the past two years I’ve opted to wait for an alternative ticket into the smartphone world.
And so I’ve waited…and waited…and waited.

Google and Nokia end Apple’s hegemony

It seems though my wait is over. The recent launches of Google’s Android platform and Nexus One smartphone as well as Nokia’s launch of the Nokia 900 spell the long awaited end of the iPhone’s smartphone monopoly.

2010 – the Year of the Mobile?

I think this is big news. In fact I’m even willing to go so far as to predict 2010 may well be the long awaited “Year of the Mobile”.

I’m basing my prediction on the inevitable consequences of the availability of real competition to the iPhone:

1. The competition between the companies must affect the pricing of smartphones making them more accessible to larger demographics.
2. The increased supply will create an increase in demand.

How does this relate to video consumption?

According to Nielsen mobile video consumption is rising rapidly.

Number of mobile subscribers watching video on a mobile phone - Source: Nielsen

Whereas in the first quarter of 2008 the number of Americans watching video on their mobile phones was just under 9 million, by the first quarter of 2009 that number had risen to 13.4 million. That’s an increase of over 52% in just one year!

Monthly time spent watching video on a mobile phone - Source: Nielsen

The tables clearly indicate that not only are more people watching more videos on their mobiles, but every one of them is spending more time doing it.

Nielsen ascribes much of the rise to:

“…increased mobile content and the rise of the mobile web as a viewing option”

I believe it’s safe to assume the increase in availability of smartphones due to the shattering of the iPhone’s monopoly will help accelerate mobile video viewing’s already rapid rate of adoption even further.

What are the implications for online vendors?

The implications for vendors are far reaching
With video fast becoming the medium of choice for the consumption of mobile web content, vendors need to consider whether they can afford to miss out on the opportunity this trend presents. This is doubly true for vendors targeting audiences in their 20’s, or tech savvy individuals, were the trend is significantly stronger.

Image sources: Raneko | Affiliate

What does the future hold in store? Video!

Human beings have rarely proven particularly apt at predicting the future – or at least certain kinds of futures.

In the days of vinyl it was hard to imagine one would ever purchase music in another format, but then came the eight-track, the cassette, the CD and the music download. It is unlikely to end there, but what other possible manner is there to access our favorite tunes?

Predictions of a certain nature, based on patterns combining past and present behaviors, are somewhat attainable.

We may see a small child who says she is going to grow up to be a doctor actually become a doctor, in so much as she expresses the desire to become a doctor, shows an interest and aptitude in anatomy and the sciences, chooses a study course to this effect, enrolls in medical school, and completes her residency. A prediction in this sense is a sequential pattern of behavior leading to a predictable outcome.

Trend spotting - predictions that make sense

Describing a pattern and assuming it will maintain course, therefore, is the most common form of prediction, and that is pretty much all we can do. See what’s been done, what’s worked in the past, and how it can continue to maintain its relevance. A bit of a buzz kill on the concept of predictions, but in no way an invalidation. People study trends for a reason, and past/present behaviors are generally an excellent indication of what’s ahead.

That being said, it’s always exciting to read that what you’re doing is the predicted activity of the future. And what we’re doing here at Treepodia is!

eMarketer’s prediction round up for 2010 led by video

Number one on the eMarketer “2010 Predictions Round-Up” of key areas of ecommerce was none other than video.

As CEO Geoff Ramsey said:

“More marketers will increasingly embrace online video advertising, supported by the twin boom of video streams and video ad networks. Further support for video ad growth will come from sites that offer a deeper catalog of professional, premium video content, which will need to introduce hybrid plans that combine subscription fees with advertising.”

Our advice? If you haven’t already done so, get with the program, get with the times, and make sure to add video to your online store in 2010.

Image credit: Frogman

“Field Test: Video Usage On eCommerce Sites”.

Originally published on Practical eCommerce in October, 2008, my first impression was, “oh, old news.”

Evolution - As seen on México's Federal Highway 2

But old news is sometimes good news when you want to compare where you were then to where you are today. With that in mind, I found it extremely interesting to read what an inaccurate perception many etailers had of product videos just over a year ago and how much retailers’ attitudes towards video have changed in the interim.

The top seven misconceptions that retailers had in terms of video usage and effectiveness that stood out in my mind were:

1) Videos distract people

I don’t think anyone in 2010 thinks that video is distracting, certainly not in a negative sense. In fact, in today’s ecommerce climate it is seen as an essential tool for properly demonstrating any given product. If, however, that is a concern in a retailer’s mind, it is also possible to add video in an unobtrusive manner, such as a simple link.

2) There are verticals for which video is not an effective medium

One retailer interviewed for example said, “Apparel doesn’t lend itself very well to video product demonstrations. Apparel turns over very quickly.” This of course is untrue. Video can effectively demonstrate all types of products including fashion, sporting goods, consumer electronics and more. High turnover is also no barrier to video. With an automated system like Treepodia’s retailers can cover any and all new products immediately, and effortlessly.

3) Cute, funny, viral type videos are the way to go

As discussed in the past, while this may be an effective strategy for some retailers for certain types of products (and dependant on goals), most retailers benefit most from covering more products, with relevant product videos on the actual product pages of their website.

4) Video is only good as an instructional tool

Au contraire. While it is indeed true that video is a fantastic tool for educating and instructing shoppers, video is also one of the most useful tools for effectively demonstrating a product and increasing conversion rates.

5) Still pictures are the best way to show products

While still pictures are still the most pervasive manner of displaying products on websites, they are not the most effective. Video is a far more effective medium for showing products, as it covers multiple angles and usages of any given product.

6) Hosting video is prohibitive to having video on site

Hosting capacity, of course, never has to be an issue for retailers, as many solutions (including ours) host for them.

7) The need to download videos will prevent shoppers from watching them

Downloading concerns are pretty much passé, as streaming is now the way to go.

So what’s the moral of the story?

Times change quickly and an industry can evolve tremendously over the course of a year.Video is a rapidly emerging ecommerce medium, an effective marketing tool, and the best way for online retailers to effectively demonstrate their products and increase sales.

Image credit: A Caveman trapped in the 21st Century

The Bold and the Beautiful CPGs

Soap, and soap related products are considered part of the consumer-package-goods (CPG) category, i.e. the staples of households. They are in their essence, as staples should be, reliable, consistent, and conventional. So while soap companies led the way in creating the Soap Opera format way-back-when, these mega companies have remained fairly conservative over the years, investing their advertising dollars in traditional, proven media.

Yet, according to an article I just read in Advertising Age:

“[The] consumer-package-goods category doubled down on the medium and became the largest category in online video in 2009…. Indeed the largest spenders in video are starting to resemble the largest spenders in TV, such as Procter & Gamble, Kraft and Unilever.”

CPGs are traditional by nature but Online Video provides big incentives to change

The CPGs, are, by their very nature somewhat late adopters, and have only recently joined the world of online marketing. But the article goes on to describe how a change of mind is beginning to take place, even in the most traditional of industries:

“To me, it is where the consumer is,” said Ritu Trivedi, managing partner at Mindshare Interaction, responsible for Unilever’s media planning. “It gives you a palette everyone is used to – sight, sound and motion. They engage with it a lot more than words. You can talk about hair products much more easily in the video format than in text.”

One of the biggest draws, for big advertisers is the fact that video, unlike television can be almost entirely measured and quantified. Advertisers are guaranteed that consumers will see their videos. They also are able to decipher exactly how many times each video has been viewed. This kind of information is gold for advertisers.

Relocation or a true conversion to online video?

There is still, of course, a long way to go, as the world of online video is still in its infancy. CPGs for the most part are simply reallocating television ad spends and formats to video, instead of having a separate budget for the medium, one dedicated to ad content specifically created for it.

That, however, based on results and a proven track record, is likely to change in the future. And the future, in the online world, tends to happen much sooner than we think…

“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.

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

Nothing cuter than a Playmobil businessman

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.