Daily Dose of iQ: Online Videos Reinforce Buying Decisions

May 06, 2011 — Allan Pulga

What's the difference between a TV commercial and an infomercial?

Typically, TV commercials are quick and intended to increase brand/product awareness. Infomercials, on the other hand, are of course longer and demonstrate more of the practical benefits of a product -- they establish context.

Like informecials, online videos go beyond creating awareness, says Craig Wax, CEO of Invodo, an Austin, Texas-based e-commerce video company. Wax recently spoke with eMarketer.com (May 6) about retail best practices for online video.

"For e-commerce video, brand awareness has already been achieved because the person watching it is typically so far down the purchase funnel that they’re on the retailer’s site," he said. "The customer knows the retailer’s brand and they’ve already picked which product they want to learn more about."

Some key points Wax makes in the eMarketer.com interview include:

  • "When people watch videos about a product, they’re typically much less likely to return it. Video can remove a lot of the uncertainty people have in buying certain items online."
  • "Look at impressions, views and view rate, which gives you a sense of the percentage of people who are watching video when they come to your product page, or wherever you happen to have the video."
  • "Look at whether people who watched the video are more likely to add it to the cart and ultimately buy than those who (didn't watch the video)."
  • "What matters is whether or not somebody actually goes and buys the product after they watch the video. I’d much rather see somebody watch a video for 15 seconds, see what they need to see and buy it, than have somebody watch the video for 90 seconds and not buy it."

Topics: Mobile Industry, e-Commerce, Retail Marketing

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