Posts Tagged ‘online video industry’

Video Increases Conversion, But How Much? eCommerce Roundup

DollarOnline video was a priority of digital marketing budgets for 67% of senior executives in 2009 (PermissionTV study). This strong focus is fueled by high expectations in conversion increases when offering product videos alongside descriptions.

Everybody agrees that video increases conversion rates. It is a major incentive for our customers when taking advantage of our automated video production platform. When we talk to people about the benefits of video, one question often comes back: How much exactly does video increase conversion?

The truth is, as always, it depends. It depends of the relevance of the video content to the decision the user is trying to make. It depends of how well the video is integrated within the user workflow and pages. It depends of the video distribution strategy. So the best way to set expectations is probably to look around for real-life implementations and results.

We researched that million-dollar question and would like to share the results with you. We found 8 retailers who reported the performance of implementing video to their ecommerce site.
They tell us video works. With an average conversion bump in the range of 30%. And a surprising fact is that best-performing videos are not the most expensive to produce.

Zappos: 6% to 30% conversion increase for products with in-house video
A couple months ago Rico Nasol was interviewed in a panel at the Streaming Media West conference. Zappos is definitely leading the industry in its video efforts, on their way to 50,000 videos produced in-house by the end of 2010. Here’s Rico’s presentation, and a post on ReelSEO about the interview.

EyeBuyDirect.com: 30% conversion increase for products with automated video
Roy Hessel, CEO of EyeBuyDirect, reported a 30% conversion increase with video. What’s particularly interesting is that this performance has been achieved, unlike Zappos, with videos created automatically by animating available product content (images and data). In case you missed it, our automated video platform does just that.

PFI Western: 50% conversion increase for products with in-house video
Jason Arend was another panelist at Streaming Media West. With 2 people dedicated part time to in-house video production at PFI Western, they achieved commendable results with 50% conversion increase, plus multiple cherries on the cake: Video SEO boost, 27% returns reduction, average order value increase, average time on site increase, and return visit increase. Congrats Jason! You can watch his presentation here.

Onlineshoes.com: 19% to 45% conversion increase for products with video
When Onlineshoes.com started experimenting with product videos, they saw right away a conversion bump of 19%. They decided to go full throttle on video, and achieved up to 45% conversion increase with products like FitWiz, reports Peter Leech.

Ebags.com: 138% higher conversion rates on product detail pages when a customer clicks on the video
This stat can’t be compared with the other ones, but it is 1) impressive and 2) very interesting, because it tells us about the impact of product videos regardless of how visible, accessible the video is within the product page.

Clean Air Gardening: 20% conversion increase for products with in-house video
Lars Hundley, president of cleanairgardening.com, reports a 20% increase in conversion for products featuring video presentation, in addition to a reduction in product returns.

Ice.com: 40% conversion increase for products with automated video
Jewelry online retailer Ice.com reports a 40% increase for products featuring short videos generated automatically.

Sellpoint: 35% increase with rich-media products presentation
Sellpoint is one of the leaders of rich-media product showcases, with significant presence on amazon.com and other major retailers. Although not technically video based, the product tours show animated slideshows with voice-overs, with conversion benefits comparable to what can be achieved with video.

We hope these data points will help you get an idea of the returns one can expect using video to drive sales. What’s also interesting is to see how automatically generated video achieves comparable results to in-house produced videos featuring hosts showcasing products. The main difference is obviously production cost. Where ecommerce powerhouses like Zappos dedicate multi-million dollars video production budgets to create tens of thousands of videos, videos generated automatically with the Stupeflix platform cost $1.5 a piece.

Video SEO Talk – Interview of Mark Robertson, ReelSEO

mark-headshotIf you ever wondered about Video SEO, or are interested in video as an online marketing tool, you probably came across Mark Robertson and ReelSEO. Mark is an authoritative expert and speaker on all things at the intersection of online video and search, and the founder of ReelSEO, an invaluable resource for online video professionals. We have been avid readers of the blog and are thrilled Mark was kind enough to answer our questions about Video SEO. Mark can be found on Twitter @markrrobertson.

Stupeflix-logo-tinyMark, when you founded ReelSEO back in 2007 it was the first blog focused on video SEO. Why did you think at the time this was a crucial subject?

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When I created ReelSEO.com, I really intended for it to be a platform for myself to learn more about online video and how it could be leveraged in the Search Engine Marketer’s world.
Up until recently, I was the Director of Search for a privately owned media company composed of more than 100 newspaper, magazine, broadcast television, and interactive properties throughout the US. I was responsible for overseeing our company’s national search and local search lines of business.  With that role, I developed a strong focus and passion towards search engine optimization.
In 2007, I began to see video thumbnails appearing within Google’s Universal search and I wanted to learn more about how to capitalize on what I perceived was an obvious opportunity.  It quickly became apparent to me that no one was focused on this, so I created ReelSEO as a source of information for anyone that may find this trend as interesting as I did.  Thankfully, quite a few people found this trend interesting and ReelSEO has somewhat taken-off as the #1 authority for video SEO and video marketing.

When I created ReelSEO.com, I really intended for it to be a platform for myself to learn more about online video and how it could be leveraged in the Search Engine Marketer’s world.

Up until recently, I was the Director of Search for a privately owned media company composed of more than 100 newspaper, magazine, broadcast television, and interactive properties throughout the US. I was responsible for overseeing our company’s national search and local search lines of business.  With that role, I developed a strong focus and passion towards search engine optimization.

In 2007, I began to see video thumbnails appearing within Google’s Universal search and I wanted to learn more about how to capitalize on what I perceived was an obvious opportunity.  It quickly became apparent to me that no one was focused on this, so I created ReelSEO as a source of information for anyone that may find this trend as interesting as I did.  Thankfully, quite a few people found this trend interesting and ReelSEO has somewhat taken-off as the #1 authority for video SEO and video marketing.

Stupeflix-logo-tinyWhen do you think will be the turning point in video SEO becoming mainstream for SMBs and online marketers?


mark-headshot-tinyI think that we are at that turning point.  More and more small and medium sized businesses are leveraging online video to promote their brands, products, and services.  Almost immediately after a business takes the dive into online video, one question becomes apparent – “How do I get more people to find my videos?”

Stupeflix-logo-tinyWhat does a business need to start doing video SEO?


mark-headshot-tinyProduce Video…  I know, it is an obvious answer to the question but the most difficult part of doing video SEO is to actually begin creating video content for the web.  Once you have video, the rest is quite simple.

Stupeflix-logo-tinyHow is practicing video SEO different from regular SEO?


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This is a great question.  In my opinion, being that I am a SEO professional with a background that pre-dates video SEO, I see very little difference in terms of best practices for video SEO.  In the end, video SEO is purely an extension of SEO and it is primarily about:

1.     Creating quality, engaging, and unique content.

2.     Publishing that content in a way that it can be easily indexed by search engines,

3.     And describing that content in a relevant manner that follows best practices for SEO.

The only differences at this point in time are that;

·         #2 is a bit more tricky with regard to video indexing as guidelines often change and search engines are still working to better understand Flash

·         #3 is primarily about on-page text and metadata

In the future, I see both of these differences becoming less and less relevant as search engines becoming more attuned to crawling and classifying multimedia content.  In the end, video SEO, much like traditional SEO, will be about creating great content, and publishing that content according to publishing best practices.

Stupeflix-logo-tinyWhat are the most common misconceptions about video SEO?


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I think there are a few common misconceptions about video SEO.

1.     First off, being that my background is in website SEO, I feel that video SEO should be focused more so on driving organic traffic back to the source of the video content.  As a result of this, my passion resides more so with hosted video SEO, i.e., search engine optimization of video that resides on the company’s website.  I find it odd that video distribution is often lumped within the definition of Video SEO.  Certainly, distributing video to video sharing website like YouTube is a simple and effective way to get video assets placed within search results pages.  However, to me the strategic advantage of distribution has much more to do with branding and does not as easily result in an increase of traffic to the original source.  I do think that distribution is an important consideration for increased visibility of online video content, but I hesitate to call it video SEO.

2.     Secondly, I see blog posts across the internet on a daily basis that seem to point to video SEO as a unique and almost magical way to get great rankings within search engines and generate business.  At this point in time, while it may be easy to distribute a video asset and gain high ranking in the SERPS (search engine results pages), purely ranking in search engines for a set of keywords does not always translate to an increase in business.  Additionally, as search engines mature and as more and more video content is added to the web, those that excel with video SEO will be those that create great, informative content that is relevant to their business, product, or service.


Stupeflix-logo-tinyWhich features would you like to see as a video SEO expert in the Stupeflix API (for developers to automatically generate large quantities of videos) and in the Stupeflix Editor (for people to easily create a video from their media files)?

mark-headshot-tinyThe most useful functionality that I could see for those that generate large quantities of video would be to make it as easy as possible for those users to generate relevant metadata for their video content.  With this, developers will have an easier time creating video sitemaps/MRSS feeds/Playlists that properly categorize their video assets and leverage accurate and relevant data.

Advertisers: Forget About Flash, Focus on Video

Back in June 2009, Google’s Double Click and Dynamic Logic published a groundbreaking report revealing the comparative performance of ad formats in online branding campaigns: The Brand Value of Rich Media and Video Ads. The bottom line: while simple Flash is currently the preferred format for online ads, it is largely outperformed by video ads.

The Research Report compares the performance of the four leading formats for online advertising: Image (GIF or JPG), Simple Flash, Rich Media Without Video and Rich Media With Video. For each of these formats, analysts dissected 4,000 online campaigns and rated them along five result-oriented metrics relevant to marketers and brand managers: Online Ad Awareness, Message Association, Aided Brand Awareness, Brand Favorability and Purchase Intent.

Results are loud and clear: if you are trying to promote your brand or sell a product, video beats Flash 5 to 15 fold.

Source and Copyright Double Click and Dynamic Logic, The Brand Value of Rich Media and Video Ads

Source and Copyright Double Click and Dynamic Logic, The Brand Value of Rich Media and Video Ads

With this in mind, expect a shift of online marketing budgets from Flash ads to video in the near future.

Historic and status-quo reasons aside, the current predominance of Flash ads has probably something to do with longer delivery time and higher costs of production for video. But here’s the good news: Stupeflix is here to change that!

Online Video By The Numbers: $1.6Bn revenue in 2010

The recent Online Video Value Chain study published by AccuStream Research provides valuable quantitative insight in the online video industry. Here’s what we found out:

Good News

Online Video Value Chain from 2008 to 2010

The industry is forecasted to grow with a solid 25% increase in 2009 and 26% increase in 2010, to reach then a good looking $1.6 Bn.

Who’s in the Online Video Value Chain? Who’s in the $1.6 Bn?

Show Me The Networks

Online Video Value ChainCDN and Advertising Networks are forecasted to represent more than 86% of the value chain revenue in 2009, that is $1.12 Bn. Typical companies in this category include Eyewonder, Eyeblaster, Pointroll and DoucleClick. Revenue forecast for this category shows a healthy 35% increase, yet far from the 77% increase this market has lived in 2008.

The video CMS market is forecasted to reach $137M revenue in 2009. Typical companies in this category include Brightcove, thePlatform, MoveNetworks, Vusion.

The video indexing market is forecasted to reach $44M revenue in 2009. Typical companies in this category include Auditude, Delve Networks, DigitalSmiths and vMix.

It appears however that the segmentation between pure CMS players and indexing players is becoming obsolete, as most companies in both markets expand their offering in platforms with services covering both categories.

But wait. Where is Stupeflix?

Round It Up To The Next Digit, Will You?

At the bottom of the online video (food) chain lies video production. Stupeflix is an automated, self-service video production platform which allows the creation of massive amounts of video content. Since Stupeflix appears not to be represented in the above forecasts, here’s our advice in considering the 2010 revenue figures: round it up to the next digit!