Businesses that sell product online can benefit greatly with an online video marketing plan. Studies show that video is more effective than any other medium for building brand recognition and generating sales. Although today’s consumers are savvier and more skeptical than ever, and will quickly click away from obvious pitches that don’t provide them with any intrinsic value. But according to Rico Nasol, Content Team Senior Manager for Zappos, "Online video is another way for the customers to see the product and the company culture.” The E-Commerce giant sells over 300,000 different products, and the company sells anywhere from 6-30% more merchandise when accompanied by videos. This session from the Online Video Platform Summit, "New Strategies for Marketing and E-Commerce", was moderated by Justin Foster, Founder of the non-profit Video Commerce Consortium, who was joined by a panel of retailers that are each using their own innovative strategy with video and social media to create brand awareness and loyalty, and to increase sales conversion rates.
Each panelist brought on interesting story to share how they are approaching the challenge of implementing social video. Foster shared some background on the state of video and e-commerce from a report by Forrester Research, Online Retailers' Adoption Of Online Video Content Is Ahead Of Consumers' Preferences, which found that 68% of the top 50 Internet retailers use video content on their Web sites, compared with 18% in 2008 – a 400% growth in one year. Sunday Sky's Quarterly Research Report, Q2 2010, "State of Video in E-Commerce" also looked on the same category of the top 50 North-American online retailers and found that more than 65% of retailers use videos.
BeautyChoice.com has a unique model of creating, or sourcing, user-generated content through YouTube. They find YouTubers with a lot of subscribers and sign them into talent contracts, and then do product placement in their videos. Beauty.com's Jordan Blum says they've generated over 340 million views from those YouTube videos alone, with practically no marketing budget. Laurie Williams says Zappos.com uses their "quirky" company culture to build trust with customers. They have been producing short videos featuring actual Zappos staff members who demonstrate and talk about the products in an authentic and relevant way. They have also been promoting, The Zappos Video Experience, which is a forum where customers can submit video testimonials to share their stories as well. Jimmy Healey says OnlineShoes.com uses a hosted ratings and reviews system that's embedded in the video to increase conversion rates. Watch the video of the session to see how these retailers are reaping the benefits of e-commerce video, social media and YouTube marketing.
Social video marketing for e-commerce: lessons from Streaming Media West
Following the session, I recorded this interview with Justin Foster by Grant Crowell which is posted on the Video Commerce Consortium. They discuss, "the new opportunities with video in for getting discovered and monetization, user-generated video innovations with retailers, and the different priorities around online video between marketers, talent, and producers." I've included a short excerpt of the transcript below. Grant also edited this video and you can read the full interview here.
Social Video Marketing for E-commerce from Grant Crowell on Vimeo.
Grant, ReelSEO: Justin, you had several notable panelists talking about new monetization with search and social media strategies. Tell me, how was that session like?
Justin: It was a great session. Each of the retailers on our panel is using their own innovative strategy to tap into social media using video. It was awesome to moderate.
Grant: What were some of the questions you asked the panelists about video marketing and video in e-commerce?
Justin: There’s been a lot of talk lately about the YouTube Promoted Videos program. So we were asking some of the retailers how many of them are actually taking advantage of Promoted Videos and understand the potential benefits of doing CPC buys with Promoted Videos. We found that it’s pretty early; we really don’t have a lot of retailers that are taking advantage of it yet. But you see a lot of people that are seeing a lot of opportunity.
Same goes for Facebook. I was really shocked that a couple of retailers on the panel really don’t make it possible to share a video that’s on their product detail page; but all of the panelists did think it was a good idea to enable sharing of their videos on the product detail page. So it seems like it’s pretty early. (more...)
Streaming Media West in Los Angeles, the Online Video Platform Summit is designed for video publishers of all types and sizes, whether small businesses looking to publish content for the first time, independent entertainment content creators, large media organizations, or anywhere in between.
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