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E-commerce Link: Lights, Camera, (Sales) Action!

Use video to drive e-commerce sales and loyalty

May 2007 By Ken Burke
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Online video is riding a wave of popularity. Industry researcher Forrester Research reports that 34 percent of all Internet users view video online at least monthly, and 53 percent have seen a video online at least once. The content of those videos ranges from movie previews to amateur productions to video-phone captures uploaded to video-sharing Web site YouTube, whose $1.65 billion acquisition by Google grabbed headlines last year—and put a hefty dollar value on the online video phenomenon.

There’s no doubt that online video is cool. But for merchants who need to focus resources on maximizing conversions and loyalty, the hype factor alone isn’t enough to justify investing in online video. Are there dollars beyond the buzz?

Increasingly, the answer is yes. Investment in online video is growing: eMarketer predicts that online video advertising will grow 89 percent this year to 4.2 percent of all online marketing spending. Savvy online merchants are finding ways to capitalize on video to showcase products, engage customers on a deeper level and increase overall brand awareness.

As broadband penetration in the United States tops 50 percent of the population, online video only can increase in popularity. Now is the time to begin implementing the tactics that will boost your e-business. To maximize results, focus on the following three key opportunities.

1. Use sound and motion to show your products in action.

According to Forrester, 5 percent of all online consumers have watched a product demonstration video in the past month, while 3 percent have watched an instructional video. Capitalize on this information-seeking behavior by providing video that displays your product in motion. With video, shoppers can not only see a 360-degree view of your product, but they also can have a better sense of its shape, relative size and function than they would from a series of flat photos.

These videos don’t have to be elaborate; a 20-second clip on Home Depot’s site, www.homedepot.com, is enough to demonstrate the versatility of the Little Giant ladder system and how fast it can fold and extend into different configurations.

Of course, some products lend themselves to more elaborate video presentation. For example, on the Macys department store site, macys.com, videos promoting the Hotel Collection of high-end linens and homeware feature an expert stylist giving design tips and describing product benefits.

2. Play to your customers’ niche interests—and let them participate.
 

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