VIDEO an unbelievable competency to heighten transition of

VIDEO MARKETING A SALES BOOSTER IN E-COMMERCE: A CASE STUDY

 

 

Abstract

Video
recording and specifically, video recording of any product can have an unbelievable
competency to heighten transition of product by helping people understand product
and provide consumers with as much information and details as possible
about the products offered. In fact, internet site visitors are more likely to
purchase a product on an online retail website after watching a video. Video advertising is becoming an incredibly
attractive way to improve/increase sales and incorporate brand name cognisance among
customers. Videos are potentially the most efficient way of
presenting a product and its benefits to website visitors. In this paper we will
discuss case study of Purple organization which uses Video Marketing, Digital Media,
Social Media, etc. to build their E-Commerce
business and boost their sales in market.

Keywords: E-commerce, Video advertising, Digital Media.

 

The concept of
on-line videos

 

Any marketer or company operating on a
limited budget knows that enacting powerful marketing techniques is often a
struggle with limited funds. While brick-and-mortar solutions may have worked in the past, companies in an increasing digital age
need to look towards digital marketing solutions. That’s why we’re thrilled to
bring you our Analysis of Video Impact, which demonstrates the ways in which video can provide exciting,
innovative marketing with
low costs and quick results.

 

Indeed due to video’s prevalence on
the web, its categorical flexibility, easy
shareability, ability to increase brand awareness and tendency to ease the
purchase of goods and services,
video is clearly the future
of internet marketing. Consumers
have proven increasingly receptive to the video format, and companies taking
full advantage of this receptiveness have accrued the benefits via increased
profits and decreased costs. Those
businesses that have eschewed
video are clearly failing to engage a huge portion of the virtual marketplace, which is undoubtedly the
future of commerce. In the following pages of this corporate summary, we
explore the myriad benefits of video usage for
marketers, CEOs, and software
companies alike.

 

Digital
video: spending

 

According to a new study by Digital
Content NewFronts, businesses are increasing their awareness when it comes to
the projected dominance of video.
That awareness is reflected in the restructuring of their budgets with a strong
video focus. 67% of marketers and agency executives think that original digital
video will become as important as original TV programming within the next 3 to 5 years 1. That’s two-thirds of market
leadership who are convinced
digital content is the way forward. Thus, both executives and marketers will be looking for
digital content to demonstrate its ability to capitalize on effective sales and branding opportunities.
Obviously, projections will
only be followed if digital content produces metrics consistent with those of television. Granted, these
numbers are affected by the place in which they were given. Digital Content
NewFronts encourages corporate participation in their programming, and 8 of 10
advertisers who attended the 2014 NewFronts program agreed that their participation resulted in more
spending on original digital
video content and/or motivated them to increase their budgets for 2015 2.
The NewFronts event also proved
directly responsible for over a third of buy-side attendees spending on
original digital video ad content between 2014 and 2015. This proved to be a
24% increase in NewFronts’ impact on share of spending over the same period of
time in 2013.

 

 

 

Why companies
should use the video format

 

The human
tendency to prefer video over other forms of visual and text presentations has been generally
accepted for years. Recently, however,
Susan Weinschenk embarked upon a
study to show that this was not just widely accepted lore but provable fact. She reached a number of conclusions. First of all, video content is hugely important due to the fact that the fusiform facial
area causes people to pay increased attention
to what they’re viewing 3. Therefore
content that contains a variety
of faces allows for greater information
absorption. Audio content remains
vital as well, since the human voice has proven to convey rich information. When used in tandem, video and audio communicate passion, which is both communicative and
persuasive. Watching video involves the sectors of the brain which govern emotions. These sectors are consequently
those that control memory storage as well. Therefore information that is
presented in an emotional way is more deeply remembered. Lastly, Weinschenk discovered that the brain is wildly
sensitive to movement. While static pictures can prove useful sparingly,
movement grabs a viewer’s attention, where
static photos decrease it. Weinschenk’s
study scientifically proved the industry assumption that video is one of the
most powerful tools in a marketer’s arsenal.

 

Current utilization of videos by marketers

 

According
to the Online Video Marketing Survey and Business Video Trends Report,
the vast majority of marketers are currently using video.
There are, however, some pitfalls that affect overall video usage in marketing.
First
and foremost, most businesses have not allotted enough of their budgets to
video marketing in the past. Subsequently, 71% of marketers
have indicated that their video marketing budgets will increase for
2015 4 of survey respondents, 93% stated that they used video marketing, sales,
or communications, and an addition 3% indicated that they are considering
using video
marketing in the future 5.

 

Thus, only 4% of marketers remain uninvolved in online video
advertising, proving that
online digital marketing is a crucial marketing and communications platform. Seeing its success, why
aren’t all business taking advantage of
video marketing?

 

The main factors holding back video production appear to be costs and the difficulty in producing high production quality. Of these
issues, money problems are a
misconception. In fact, video
saves companies money in the long
term, due to directly inspiring higher conversion rates and average order values (AOV). Thus, restructuring budgets to include video production costs is paramount

 

Efficacy
of online video advertising

 

According to
a 2015 Brightroll Agency survey, 72% of consumers believe that online video advertising is as or more
effective than its television counterpart 6. As one might imagine, this belief is reflected directly
in budgetary proposals. In fact, there has
been an 88.6% increase of video advertising
components in Request for Proposals (RPFs) over the last three years 7.

 

Video is
paramount

The data gleaned from these diverse grouping of studies
clearly indicates that digital video advertising is vital for the future of
marketing. Indeed, the vast majorities of companies have seen the trends, and
acknowledge how digital videos provide myriad benefits to their profit margins
and conversion rates. Since the bulk of
both consumers and marketers have
turned to video, any business not using
this medium is sure to be phased out of the market. Marketers, agency executives, and business owners should be sure to include video in their
advertising plan if they have not
already.

 

 Emails with video boast increased power

 

A recent study by The Relevancy Group, a leader in email marketing, indicates that companies utilizing video in their email correspondence receive markedly improved results in contrast to their non-video using counterparts. According to their study, conducted upon a variety of business
and nonprofit organizations, emails containing video received increased
click-through-rates (CTR) of 55% 8. This
data indicates that, with continued use, recipients will increasingly
prioritize and open messages from known senders of video emails.

 

In addition to increased open rates, emails containing video generally have a 14% higher
AOV and a 40% higher monthly revenue than those that don’t.  Besides the bottom line, video improves overall
email engagement. Emails containing video boasted a 44% increase in time spent reading the email, a 41%
increase in sharing and forwarding, a 24%
increase in conversion rate,
and a 20% increased return on
investment (ROI). All of this data indicates that email embedded in email
correspondence can boost overall
sales while accruing minimal
additional cost for the company.

 

Social media

 

According to a report by Social Bakers, video usage on
social media continues to evolve. The report reveals that Facebook is poised to
overtake YouTube as the platform most vital to video engagement in marketing.
While YouTube continues to host the largest number of videos, Facebook presents
itself as the platform that is converting viewers into consumers. Pursuant to the report, in December of 2014, Facebook videos received 80%
of all video interactions. Thus, although YouTube remains the leader when it comes to information gathering via video — only second to Google in
information gathering at-large — Facebook is becoming the go-to platform for
video sharing.

 

Indeed, according to a report by LinkedIn, 75% of
business to business (B2B) buyers and 84% of C-Level/VP Executives surveyed
heavily utilize social media
when it comes to making purchasing decision. Since, as previously shown, social media participation is
increasingly video heavy, it stands to reason that video marketing can be used
to ease the decision making process.
As these social buyers also spend 84% more per purchase, catering to them via video advertising can
overhaul a business’ bottom line.
Thus, social media is an invaluable tool
when it comes to maximizing profit margins and appealing to the executive base.

 

Web sites

 

The
benefits of video usage on web sites

 

A Liveclicker
Video Commerce report shows that websites that utilize video boast not only increased conversion rates but also higher
Average Order Values (AOVs). Additionally, the presence of videos on a webpage optimizes consumer
understanding, strengthens the
accrual of revenue, and increases
search engine optimization.

 

To begin with AOV, those retailers
providing video on the majority of
their product pages saw a 68% increase on their average order values 9. Such a stark
increase in AOV proves the ways in which video can serve as a game changer. Additionally, those shoppers
who watched at least 10
videos bought 119% more than those
who watched only one 10. Thus, the more video watched per shopper, the higher the AOV. This goes
hand-in-hand with conversion rates,
88% of which were increased on product pages containing relevant video. Not only does video increase
the value per purchase, it increases
the number of purchasers at large. Indeed, if those companies including video on their product pages, those
with video on their majority of their
pages saw a 79% higher conversion rate when compared to those counterparts with
only a few videos. Multiple sources have made it clear that video can revolutionize corporate-consumer interaction.

 

The benefits of video usage on web sites

 

Companies
that use videos increase their
trustworthiness and engagement in the eyes of the customer. Animoto’s report
stated that 58% of consumers find
companies that produce video content
to be more trustworthy and 71% of respondents stated that videos leave a positive impression
of a company 11. This trust fosters
further growth across a variety of sectors.

 

Indeed, while
trust is paramount, purchasing power is of equal or greater importance. Good
thing 96% of survey respondents stated that
they find videos helpful when purchasing online, and 42% actually requested more product description or service demonstration videos. Cleary original video content helps strengthen the
overall message a company projects, and
subsequently encourages a greater amount of purchases.

 

Video usage on e-commerce platforms

 

Companies that
utilize video on their E-Commerce Platforms
have been shown to possess an
increased scope, greater memorability among consumers, and lower customer care
costs than their counterparts. Additionally,
videos have been proven to increase customer involvement with company aims, catch consumer attention more than
other forms of media, and foster increased understanding of company aims and
goals. Indeed, when it comes to online
purchases, video has been proven to provide an increase in sales 12.

 

That does not
mean that websites should present a feature-length
film. the average adult
attention span has dropped from 12 minutes to only 5, therefore any
videos should be clear, concise, and provide instant gratification 13. While elucidating concepts via video is important, customers
don’t want to be hit over the head
with a sales push. Soft selling
— otherwise known as persuading the
customer to purchase — is imperative, and
videos that appeal to feelings
and emotions are the best
way to provide a soft sell. Videos
that inspire customers to
live their best life using a business’ product have proven most effective in
encouraging greater purchasing.

 

Video
eases the purchase of goods and services

 

Due to an
increased desire for flexibility in online purchasing, retailers who utilize
explainer videos have found their ease of purchase to be heightened. By
providing clear and demonstrative customer service that is available on the consumer’s
schedule, video increases customer autonomy and empowers them to make a purchase. Indeed, according to a
recent report by UPS, online shoppers want retailers to make it easier for them
to purchase goods and services 14.  Consumers also want websites and stores to
work better together.

 

While
consumers are looking for better store/website communication, they also gather most of their product
information online — 61% of consumers prefer online product
research, in fact 15. This preference creates
a huge opening for the presence of
explainer videos, which are proven to be the clearest method of elucidation for
consumers.

 

Moving forward in the mobile age

 

Current research
indicates that the way forward when it
comes to video marketing belongs
to the mobile user. The vast majority of Smartphone and tablet users utilize these devices while simultaneously watching television — 84%, in fact. Thus, viewers can be equally present as consumers when also engaged with traditional forms of advertisement. Therefore, ensuring that advertisements target consumers’ mobile usage and ease their
purchasing experience is of vital importance. By ensuring that marketing
is not restricted to one platform, but accesses consumers across all of their
media channels, businesses guarantee increased leads, revenue, and profits. Indeed, mobile viewers have proven to be the most
prolific social sharers, with 92% sharing videos with others. Since 50% of all mobile traffic is already based in
video, a number that is set to
increase 14% by 2018, mobile
presence is of vital importance
for those looking to optimize the workability of their digital videos

 

 Role of Social Video Marketing
in E-commerce Sales

When you study and compare brick and mortar and ecommerce, it becomes apparent
that ecommerce has a number of distinct advantages over traditional retail.
However, it lacks a competitive advantage in one glaring area. Whereas online
products must be viewed through the screen of a device, in-store products can
be touched and held.

 

For some customers, this is a big deal. And,
while ecommerce businesses can’t let customers physically interact with
products, they can do the next best thing: provide them with immersive video
content.

 

As the old saying goes, “A picture is worth
than thousand words.” If this is true, then what’s a video worth? Is it worth
10,000 words? One million words? Who knows – but it’s clear that savvy
marketers are beginning to rely less on traditional content marketing and more
on video marketing.

 

 Purple: A Case Study on Video Advertising’s Effectivity

 

In order to understand fully the impact that
video advertising can have in an ecommerce marketing strategy, let’s take a
look at a recent case study involving the new brand, Purple.

 

Here’s a little background information before
delving into the details. Purple is a direct-to-consumer mattress company
that’s designed an affordable hyper-elastic polymer mattress that provides
comfort and support for sleepers of all shapes and sizes. Purple recently
concluded a Kickstarter campaign, in which backers pledged more than $171,000
to bring the concept to life, and is now selling direct from its website.

 

Throughout the launch, Purple relied heavily on
video to fuel sales. The campaign’s primary video features an in-your-face, yet
adorable, Goldilocks character who narrates the wonders of the “raw egg test.”
The video can be found both on YouTube, as well as on the Purple Facebook page.

 

While the video has been successful on both
platforms, it’s interesting to note the differences in view count. While the
YouTube video currently has just over 1.13 million views, the Facebook version
has accumulated well over 5 million views.

 

Ultimately, this shows just how powerful
product videos can be when published on a platform that’s conducive to sharing.
When you sift through the comments on Facebook, you’ll notice how many users
tag others in their posts. This organic sharing reduces the need for excess ad
spending.

 

Conclusions

 

After
the above discussion and clarity it is clear that video as tool of marketing is the most appropriate way to promote
any product specifically when it comes to E-commerce business marketing. From overall internet traffic to
increased CTR (Click-Through-Rate), AOV(Average Order Value), and profit
margins at large, companies looks to video advertising as the important platform
of marketing in this current Internet and
technology Age. In present scenario each and every
organization which is looking to increase their profit revenue and brand cognisance should increase their digital and social
video presence over internet sites. Any organization
looking forward to boost their sales
by spending less and getting more should be looking towards the future with video advertising and digital marketing.

 

REFERENCES

 

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2.      
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8.      
 Daniels, David. “The ROI of Video in Email
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