How the Rise in Video is Driving Ecommerce
By Linda Peters, Senior Advisor in Luxury Retail, Ariadne Capital
A
s the 2012 retail year ended, we noticed two major factors were driving an increase in online sales: mobile and the
increasing use and influence of video. In fact, Ashley Schwartz, founder of digital advertising consultancy Furious Minds, told
Beet.TV that video views of retail items are driving as much as 40 percent of site visitors to ecommerce sites. Video is now one of the highest influencers in driving online sales, with brands and individuals globally launching their own video channels to speak on the latest must-have product and to educate their customers and partners.
In terms of luxury e-tail, video gives fashion shoppers a better experience. For instance, it’s not easy to imagine still shots of a dress on a model, let alone on yourself. Movement provided by video makes the product come alive, with companies like ASOS mastering this early on. The UK’s largest online- only fashion store, founded in 2000, integrates video catwalks on every item page, allowing you to view the product you wish to buy in action. Understanding the power of video, using it to engage buying customers
42 entrepreneurcountry Left: Lisa Eldridge providing a tutorial based on Chanel’s Spring
and creating interactivity at the point of sale are arguably some of the reasons why the e-tailer has become so successful.
Beauty sites have also realised the power of video. In fact, online beauty demonstrations are one of the best uses of video, since application of the product is key to customer experience and satisfaction. It’s fun and helpful to view a video on how to apply colour cosmetics or skincare, particularly when the typical customer has little experience in make-up application, styling, or how best to manage their beauty regime in an ever aesthetic- possessed world. According to Bing Chen, Head of YouTube’s
Partner
Program, amateur ‘beauty guru’s’ are now creating their own channels on the video sharing platform, creating sustainable businesses as a result.
They are also being showered with beauty products from PRs, who are desperate to get a mention on videos that are engaging millions of beauty lovers globally. Michelle Phan is a great example, who began life on YouTube in 2007 at the tender age of 19 uploading tutorials teaching women how to buy and apply make-
up. She was then able to profit from her videos, with YouTube making guru’s like Michelle ‘YouTube Partners’ and approving them for monetisation based on the amount of viewers and subscribers they attract (in Michelle’s case, she currently has almost 3 million subscribers). Monetisation involves allowing YouTube to display relevant advertisements on and around the video using Google AdSense. As a result, Michelle and YouTube then share a portion of the revenue.
What makes the creation of video by individuals such as Michelle a powerful force in the market is the fact that conversion rates are substantially higher after consumers have watched her in action. Brands have now tapped into this trend, with make-up giant Lancôme taking on Michelle as their global ambassador to produce sponsored make-up videos for the brand.
Typically, cosmetic brands would have invested thousands into promotional video campaigns, hiring supermodels and production teams around the latest mascara or lip gloss. Although this still happens, it is equally effective to target a woman on YouTube with an active
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