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Online retailers are increasingly using video content as a tool to drive up sales. Specifically, product videos are useful for educating consumers on items they're interested in, while giving them a dynamic view of it in action.
And this type of content has already proven itself to be a useful way of engaging customers. In fact, annual product video views across digital platforms increased 42% in 2015. Consumers that watch these product videos are 1.7 times more likely to make a purchase online after watching it, according to a report from Invodo Inc.
Furthermore, the quality of these videos makes a difference — videos with a five-star rating translated into a 3.76% conversion rate, with one-star videos earning just a 1% conversion rate. In addition to driving sales, retailers that provide videos drive customer loyalty and engagement.
In the US, 58% of consumers consider a company with product video content to be more trustworthy, according to Animoto. This highlights a tremendous opportunity for retailers to help build relationships with customers and encourage them to return for future purchases.
E-commerce retailers are capitalizing on the increase in consumer viewership by adding more product content videos to their websites. In 2015, online retailers added 41% more videos to their e-commerce sites compared to the year prior, notes Invodo Inc.
Retailers should be especially focused on mobile video, where viewership and video content are increasing at a particularly rapid pace. Mobile views increased by roughly 150% in 2015, driven by ongoing growth in the smartphone market.
One retailer seeing notable success in mobile video is British e-commerce pureplay Asos, whose site and mobile app offer runway videos of models walking and moving in the listed apparel product. And its overall mobile presence has gained traction worldwide. The company’s mobile app has been downloaded 5.4 million times — and mobile devices accounted for 60% of traffic and 44% of its total sales as of the end of August 2015, according to Internet Retailer.
Beyond retail sites and apps, social video has the potential to further increase viewership and sales. Social networks, such as Facebook and Instagram, offer online retailers access to millions of potential consumers. Through effective product videos on social media, online retailers will be able to boost product awareness and sales. These businesses may look to target younger consumers (ages 18-22), as these digitally-native shoppers spend much of their time on social platforms.
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