Survey of retail brands such as Best Buy, Newegg, OnlineShoes and Under Armour shows how product videos can impact the bottom line.
Retailers that incorporate product video on their sites to inform consumers report higher average order values and conversion rates according to a survey of Liveclicker’s customers using its VideoCommerce product which powers product video distribution and analytics for e-commerce firms. The survey included large retailers Best Buy, Newegg, OnlineShoes and Under Armour.
Over half (57 percent) of retailers surveyed reported average order value (AOV) increases of at least 50 percent for customers that watch video on a product page. The remaining 43 percent reported no negative impact.
More Video Matters
Customers that had video on 50-75 percent of their product pages saw AOV near $300, whereas those with with video on 0-25 percent of product pages reported AOV of $177.
Retailers that have video on a majority of their product pages also reported higher conversion rates — close to 9 percent — than those with video on fewer than half of their product pages. Conversion rates were 79 percent higher than those of retailers with video on 0-25 percent of their product pages and 31 percent higher than those with video on 25-50 percent of product pages.
Liveclicker also analyzed 44 video programs and more than 12,550,000 plays from its VideoCommerce client base, including ABT, Blinds.com, EMS, Petco and Zales and found that the more videos users watched, the more they money spent. Customers that watched 10 or more videos spent 119 percent more than those who watched just one video.
Recommendations For Product Video Optimization
Based on the survey results and campaign analysis, Liveclicker offers these recommendations to other retailers looking to get more from video:
- Create and maintain a video gallery site, as opposed to hosting your videos on a third-party domain like YouTube. The layout should be easy for users to navigate and help motivate customers back to the product pages. Rotate feature videos to help ensure videos get equal play opportunities.
- On site, be sure the video play button is easy to find and offer related videos.
- Distribute videos to high traffic sites including Facebook, Twitter, YouTube, your affiliate network and affiliated blogs. Survey respondents showed that each additional distribution channel increased video plays by 21,160 per quarter, and generated an average of $50,513 in quarterly revenue.
- Keep ‘em short. Forget long intros and edit for unnecessary information. Liveclicker looked at video length compared to conversion rate and found the ideal length for product video is under 30 seconds. The exception here is for products that are complex or have high price points. These items often perform better with longer videos.
- Mobile is playing an increasing role in this realm, too. Retailers should not be hold back on incorporating video into their mobile sites and apps. Mobile devices accounted for roughly 19 percent of e-commerce video plays in 2013. In Q2 of 2014, Liveclicker found mobile made up over 25 percent of video plays. In personal care, tablets and smartphones drove well over half of total views.
The full report is available for download here.