Retail commerce grew by 15.4 percent in 2012 to reach a total sales volume of $73 million.
A significant driver of the growth in online sales in general has been videos. Research by eMarketer.com sponsored by Invodo, conducted in March 2012, estimates that one out of every two online shoppers have more confidence in the product when watching the product video, prompting them to buy and making them less likely to return the product. 31 percent of the shoppers actually buy after being influenced by the videos in the first place. 37 percent of online shoppers would purchase more products when the website offers product-informative videos and 41 percent of online shoppers would most probably return to a website that integrates video.
It seems that online shoppers resort to the video as a substitute to the “touch and feel” experience of physical shopping. But do all videos increase click throughs?
A May 2012 Google and Compete apparel study reveals that shoppers prefer consumer-generated video content more than editorial driven, marketer produced, video content. When shopping for apparels, 36 percent of online shoppers in the US viewed a customer testimonial or review video and 26 percent watched consumer-generated non-testimonial videos while only 29 percent of the online shoppers watched email marketing video content and 21 percent of the shoppers viewed video reviews made by professionals. Ads still hold their ground, with 25 percent of online shoppers viewing ads that appear on television, another 25 percent watching ads that appear elsewhere online and 16 percent watching ads that appear on an on-demand streaming video website.
The research also clarifies that online shoppers who viewed videos when researching for a product were more likely to spend more than those who did not view videos. 25 percent of the online shoppers who used video for research, purchased more than six times in the six-month period of the study when compared to the six months period before the study, whereas only 16 percent of those who did not use videos in their research purchased more during the same period. 28 percent of online shoppers who used videos when researching the product shopped for more than $500 in the six-month period of the research whereas only 2 percent of shoppers who did not watch video spend the same amount.
How can you use video in your online strategy to reap the rewards?