Many marketers and retailers are using video marketing to attract, nurture, and convert leads. Creative video content can be used to promote virtually any type of product or service. Indeed, the latest research reveals that retailers who incorporate product videos into their websites are seeing greater average order value (AOV) and conversion rates compared to retailers who don’t.
Liveclicker’s Video Commerce Report revealed that 57% of surveyed retailers reported AOV increases of at least 50% for customers that watch videos on product pages and sites (@Liveclicker). Additionally, more than a third of respondents experienced a 91% increase in conversion with the presence of product videos.
The AOV and conversion rates for retailers using video on the majority of their pages were 68% and 79% higher than those using video on just a few of their pages. [See Figure 1]
The study by Liveclicker pointed out that while keeping videos active is important, it is also lucrative as active videos will more likely generate higher revenue for retailers. How active the videos are can be determined by how many times they’ve been played within the last 30 days. [See Figure 2]
“Surveyed clients showed an average monthly revenue increase of $13,092.84 for every percentage point increase in active videos above the mean,” Liveclicker noted. Moreover, customers who viewed 10 or more videos spent 119% more on products than those who viewed just one video, spending almost $350 as opposed to $160.
Another key takeaway from the report is that mobile is continuing to make a huge impact on video plays. In fact, approximately 25% of total video plays within the research period were credited to devices such as smartphones and tablets—up 6% from 2013. [See Figure 3]
It’s important to note that the time spent by American consumers on mobile devices has already exceeded the time they spend watching TV, as revealed in a report by Flurry. “As mobile devices become easier to shop with, they will make up a greater part of the e-commerce market, so it is important that consumers are able to engage with video on these devices,” said Ben Kopetti, Director of Video Commerce Strategy at Liveclicker. “Overall, our findings prove that video is a powerful way to engage shoppers and increase revenue. It’s no longer a ‘nice to have’ — it should be a key instrument in every brand marketer’s orchestra.”
Among the recommendations Liveclicker included in the study are maintaining a video gallery, keeping videos short and easy to find, and focusing on mobile devices to deliver a better experience to consumers.
Sample participating merchants in the study include Best Buy (@BestBuy), Petco (@Petco), GNC (@GNCLiveWell), and Newegg (@Newegg).
What other recommendations can you offer retailers who want to boost their AOV and conversion rates via product videos?
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