Video driving ecommerce growth
As consumers increasingly deploy broadband technologies in their homes and all of their devices, the ecommerce industry is turning to video as a primary way to engage customers and help them make informed purchasing decisions.
According to Craig Wax, CEO of ecommerce video solutions provider Invodo, video is emerging as a dominant ecommerce tool, and will become essential to success in the industry in 2011. Writing for ReelSEO, Wax said that in 2010, retailers began deploying video solutions on their ecommerce sites more often, and early adopters began to see a significant ROI almost immediately. As a result, 2011 will be marked by a new wave of video designed to engage consumers with ecommerce content, keeping them on sites for longer and enriching their overall experience.
Overall, the report expects retailers that have already begun to deploy video experiences on their ecommerce sites to increase their investment in the technology. Those who have gotten behind technologically are going to have to work hard to catch up to these leaders, the report said, because video has the potential to garner significant consumer attention.
One of the major benefits ecommerce retailers will obtain from video deployments is a way to support its prices. Online shoppers often struggle to notice the differences between high-cost items and their budget counterparts. Without being able to physically see a product's features and evaluate its quality in person, many find it difficult to understand why one item is more expensive than another. Quality video presentations are changing that, as retailers can use the channel to fully explain a product's capabilities and inform consumers on its value. This gives credence to pricing and supports the fiscal strategies of ecommerce merchants, the report said.
The report also explained that video will be used more creatively in 2011. When businesses finish adding videos to product pages, they are likely to expand their video offerings creatively throughout the ecommerce outlet. The report said this could mean entire video galleries, videos on category pages and videos as part of email marketing. Overall, the potential for video in ecommerce is only limited by the merchant's creativity.
"Businesses will also begin using video more actively for other purposes. In customer service, video can deliver a high-quality customer experience while deflecting calls from call centers," the report said.
According to an earlier report from ReelSEO, video provides ecommerce sites with immediate benefits because it keeps users engaged for an extended period of time, increasing the average time spent on the site.