VIDEO MARKETING A SALES BOOSTER IN E-COMMERCE: A CASE STUDY AbstractVideorecording and specifically, video recording of any product can have an unbelievablecompetency to heighten transition of product by helping people understand productand provide consumers with as much information and details as possibleabout the products offered. In fact, internet site visitors are more likely topurchase a product on an online retail website after watching a video. Video advertising is becoming an incrediblyattractive way to improve/increase sales and incorporate brand name cognisance amongcustomers.
Videos are potentially the most efficient way ofpresenting a product and its benefits to website visitors. In this paper we willdiscuss case study of Purple organization which uses Video Marketing, Digital Media,Social Media, etc. to build their E-Commercebusiness and boost their sales in market. Keywords: E-commerce, Video advertising, Digital Media. The concept ofon-line videos Any marketer or company operating on alimited budget knows that enacting powerful marketing techniques is often astruggle with limited funds.
While brick-and-mortar solutions may have worked in the past, companies in an increasing digital ageneed to look towards digital marketing solutions. That’s why we’re thrilled tobring you our Analysis of Video Impact, which demonstrates the ways in which video can provide exciting,innovative marketing withlow costs and quick results. Indeed due to video’s prevalence onthe web, its categorical flexibility, easyshareability, ability to increase brand awareness and tendency to ease thepurchase of goods and services,video is clearly the futureof internet marketing. Consumershave proven increasingly receptive to the video format, and companies takingfull advantage of this receptiveness have accrued the benefits via increasedprofits and decreased costs. Thosebusinesses that have eschewedvideo are clearly failing to engage a huge portion of the virtual marketplace, which is undoubtedly thefuture of commerce. In the following pages of this corporate summary, weexplore the myriad benefits of video usage formarketers, CEOs, and softwarecompanies alike. Digitalvideo: spending According to a new study by DigitalContent NewFronts, businesses are increasing their awareness when it comes tothe projected dominance of video.
That awareness is reflected in the restructuring of their budgets with a strongvideo focus. 67% of marketers and agency executives think that original digitalvideo will become as important as original TV programming within the next 3 to 5 years 1. That’s two-thirds of marketleadership who are convinceddigital content is the way forward.
Thus, both executives and marketers will be looking fordigital content to demonstrate its ability to capitalize on effective sales and branding opportunities.Obviously, projections willonly be followed if digital content produces metrics consistent with those of television. Granted, thesenumbers are affected by the place in which they were given. Digital ContentNewFronts encourages corporate participation in their programming, and 8 of 10advertisers who attended the 2014 NewFronts program agreed that their participation resulted in morespending on original digitalvideo content and/or motivated them to increase their budgets for 2015 2.The NewFronts event also proveddirectly responsible for over a third of buy-side attendees spending onoriginal digital video ad content between 2014 and 2015. This proved to be a24% increase in NewFronts’ impact on share of spending over the same period oftime in 2013. Why companiesshould use the video format The humantendency to prefer video over other forms of visual and text presentations has been generallyaccepted for years.
Recently, however,Susan Weinschenk embarked upon astudy 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 facialarea causes people to pay increased attentionto what they’re viewing 3. Thereforecontent that contains a varietyof faces allows for greater informationabsorption.
Audio content remainsvital 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 andpersuasive. Watching video involves the sectors of the brain which govern emotions. These sectors are consequentlythose that control memory storage as well. Therefore information that ispresented in an emotional way is more deeply remembered.
Lastly, Weinschenk discovered that the brain is wildlysensitive to movement. While static pictures can prove useful sparingly,movement grabs a viewer’s attention, wherestatic photos decrease it. Weinschenk’sstudy scientifically proved the industry assumption that video is one of themost powerful tools in a marketer’s arsenal. Current utilization of videos by marketers Accordingto 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.Firstand foremost, most businesses have not allotted enough of their budgets tovideo marketing in the past. Subsequently, 71% of marketershave indicated that their video marketing budgets will increase for2015 4 of survey respondents, 93% stated that they used video marketing, sales,or communications, and an addition 3% indicated that they are consideringusing videomarketing in the future 5. Thus, only 4% of marketers remain uninvolved in online videoadvertising, proving thatonline digital marketing is a crucial marketing and communications platform.
Seeing its success, whyaren’t all business taking advantage ofvideo marketing? The main factors holding back video production appear to be costs and the difficulty in producing high production quality. Of theseissues, money problems are amisconception. In fact, videosaves companies money in the longterm, due to directly inspiring higher conversion rates and average order values (AOV). Thus, restructuring budgets to include video production costs is paramount Efficacyof online video advertising According toa 2015 Brightroll Agency survey, 72% of consumers believe that online video advertising is as or moreeffective than its television counterpart 6. As one might imagine, this belief is reflected directlyin budgetary proposals. In fact, there hasbeen an 88.
6% increase of video advertisingcomponents in Request for Proposals (RPFs) over the last three years 7. Video isparamount The data gleaned from these diverse grouping of studiesclearly indicates that digital video advertising is vital for the future ofmarketing. Indeed, the vast majorities of companies have seen the trends, andacknowledge how digital videos provide myriad benefits to their profit marginsand conversion rates. Since the bulk ofboth consumers and marketers haveturned to video, any business not usingthis medium is sure to be phased out of the market. Marketers, agency executives, and business owners should be sure to include video in theiradvertising plan if they have notalready. 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 businessand nonprofit organizations, emails containing video received increasedclick-through-rates (CTR) of 55% 8. Thisdata indicates that, with continued use, recipients will increasinglyprioritize and open messages from known senders of video emails. In addition to increased open rates, emails containing video generally have a 14% higherAOV and a 40% higher monthly revenue than those that don’t. Besides the bottom line, video improves overallemail 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 oninvestment (ROI).
All of this data indicates that email embedded in emailcorrespondence can boost overallsales while accruing minimaladditional cost for the company. Social media According to a report by Social Bakers, video usage onsocial media continues to evolve. The report reveals that Facebook is poised toovertake YouTube as the platform most vital to video engagement in marketing.While YouTube continues to host the largest number of videos, Facebook presentsitself 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 ininformation gathering at-large — Facebook is becoming the go-to platform forvideo sharing.
Indeed, according to a report by LinkedIn, 75% ofbusiness to business (B2B) buyers and 84% of C-Level/VP Executives surveyedheavily utilize social mediawhen it comes to making purchasing decision. Since, as previously shown, social media participation isincreasingly video heavy, it stands to reason that video marketing can be usedto ease the decision making process.As these social buyers also spend 84% more per purchase, catering to them via video advertising canoverhaul a business’ bottom line.Thus, social media is an invaluable toolwhen it comes to maximizing profit margins and appealing to the executive base. Web sites Thebenefits of video usage on web sites A LiveclickerVideo Commerce report shows that websites that utilize video boast not only increased conversion rates but also higherAverage Order Values (AOVs).
Additionally, the presence of videos on a webpage optimizes consumerunderstanding, strengthens theaccrual of revenue, and increasessearch engine optimization. To begin with AOV, those retailersproviding video on the majority oftheir product pages saw a 68% increase on their average order values 9. Such a starkincrease in AOV proves the ways in which video can serve as a game changer. Additionally, those shopperswho watched at least 10videos bought 119% more than thosewho watched only one 10. Thus, the more video watched per shopper, the higher the AOV. This goeshand-in-hand with conversion rates,88% of which were increased on product pages containing relevant video.
Not only does video increasethe value per purchase, it increasesthe number of purchasers at large. Indeed, if those companies including video on their product pages, thosewith video on their majority of theirpages saw a 79% higher conversion rate when compared to those counterparts withonly a few videos. Multiple sources have made it clear that video can revolutionize corporate-consumer interaction.
The benefits of video usage on web sites Companiesthat use videos increase theirtrustworthiness and engagement in the eyes of the customer. Animoto’s reportstated that 58% of consumers findcompanies that produce video contentto be more trustworthy and 71% of respondents stated that videos leave a positive impressionof a company 11. This trust fostersfurther growth across a variety of sectors. Indeed, whiletrust is paramount, purchasing power is of equal or greater importance. Goodthing 96% of survey respondents stated thatthey find videos helpful when purchasing online, and 42% actually requested more product description or service demonstration videos.
Cleary original video content helps strengthen theoverall message a company projects, andsubsequently encourages a greater amount of purchases. Video usage on e-commerce platforms Companies thatutilize video on their E-Commerce Platformshave been shown to possess anincreased scope, greater memorability among consumers, and lower customer carecosts than their counterparts. Additionally,videos have been proven to increase customer involvement with company aims, catch consumer attention more thanother forms of media, and foster increased understanding of company aims andgoals.
Indeed, when it comes to onlinepurchases, video has been proven to provide an increase in sales 12. That does notmean that websites should present a feature-lengthfilm. the average adultattention span has dropped from 12 minutes to only 5, therefore anyvideos should be clear, concise, and provide instant gratification 13. While elucidating concepts via video is important, customersdon’t want to be hit over the headwith a sales push.
Soft selling— otherwise known as persuading thecustomer to purchase — is imperative, andvideos that appeal to feelingsand emotions are the bestway to provide a soft sell. Videosthat inspire customers tolive their best life using a business’ product have proven most effective inencouraging greater purchasing. Videoeases the purchase of goods and services Due to anincreased desire for flexibility in online purchasing, retailers who utilizeexplainer videos have found their ease of purchase to be heightened. Byproviding clear and demonstrative customer service that is available on the consumer’sschedule, video increases customer autonomy and empowers them to make a purchase. Indeed, according to arecent report by UPS, online shoppers want retailers to make it easier for themto purchase goods and services 14. Consumers also want websites and stores towork better together.
Whileconsumers are looking for better store/website communication, they also gather most of their productinformation online — 61% of consumers prefer online productresearch, in fact 15. This preference createsa huge opening for the presence ofexplainer videos, which are proven to be the clearest method of elucidation forconsumers. Moving forward in the mobile age Current researchindicates that the way forward when itcomes to video marketing belongsto 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 theirpurchasing experience is of vital importance. By ensuring that marketingis not restricted to one platform, but accesses consumers across all of theirmedia channels, businesses guarantee increased leads, revenue, and profits.
Indeed, mobile viewers have proven to be the mostprolific social sharers, with 92% sharing videos with others. Since 50% of all mobile traffic is already based invideo, a number that is set toincrease 14% by 2018, mobilepresence is of vital importancefor those looking to optimize the workability of their digital videos Role of Social Video Marketingin E-commerce SalesWhen you study and compare brick and mortar and ecommerce, it becomes apparentthat ecommerce has a number of distinct advantages over traditional retail.However, it lacks a competitive advantage in one glaring area. Whereas onlineproducts must be viewed through the screen of a device, in-store products canbe touched and held. For some customers, this is a big deal. And,while ecommerce businesses can’t let customers physically interact withproducts, they can do the next best thing: provide them with immersive videocontent. As the old saying goes, “A picture is worththan thousand words.
” If this is true, then what’s a video worth? Is it worth10,000 words? One million words? Who knows – but it’s clear that savvymarketers are beginning to rely less on traditional content marketing and moreon video marketing. Purple: A Case Study on Video Advertising’s Effectivity In order to understand fully the impact thatvideo advertising can have in an ecommerce marketing strategy, let’s take alook at a recent case study involving the new brand, Purple. Here’s a little background information beforedelving into the details.
Purple is a direct-to-consumer mattress companythat’s designed an affordable hyper-elastic polymer mattress that providescomfort and support for sleepers of all shapes and sizes. Purple recentlyconcluded a Kickstarter campaign, in which backers pledged more than $171,000to bring the concept to life, and is now selling direct from its website. Throughout the launch, Purple relied heavily onvideo to fuel sales. The campaign’s primary video features an in-your-face, yetadorable, 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 bothplatforms, it’s interesting to note the differences in view count.
While theYouTube video currently has just over 1.13 million views, the Facebook versionhas accumulated well over 5 million views. Ultimately, this shows just how powerfulproduct 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 userstag others in their posts. This organic sharing reduces the need for excess adspending. Conclusions Afterthe above discussion and clarity it is clear that video as tool of marketing is the most appropriate way to promoteany product specifically when it comes to E-commerce business marketing. From overall internet traffic toincreased CTR (Click-Through-Rate), AOV(Average Order Value), and profitmargins at large, companies looks to video advertising as the important platformof marketing in this current Internet andtechnology Age. In present scenario each and everyorganization which is looking to increase their profit revenue and brand cognisance should increase their digital and socialvideo presence over internet sites.
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