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2014 Video Commerce Report

Webinar

January 21, 2015

Dial-in telephone: +1 (415) 655-0059

Access Code: 205-916-716

Webinar ID: 119-597-771

✆

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Before we get started…

• Having technical difficulties?▪ Use the Q&A chat box to let us know.

▪ If we can’t help you, call Citrix at 888-259-8414 for technical support.

▪ Or you can chat with a Citrix representative at www.citrixgcs.com/chat.

• To submit questions during the webinar, use the Q&A chat box. Questions will be answers at the conclusion of the webinar.

• This is an interactive webinar! Take the polls!

• Everyone will receive a link to a recording of the presentation and a link to the final report, due out January 7th.

Ben KopettiDirector, Account

DevelopmentLiveclicker and

Video Commerce Strategy

@Liveclicker

Tweet!

Twitter Contest!

1 free $50 Apple gift card will be given out randomly to anyone who uses the hashtag #videcommerce or mentions @videocommerce when referencing today’s webinar

@videocommerceOther Handles:@KennaHilburn - Kenna@benkopettibiz – Ben@liveclicker

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Video Shopping for Retail

Apparel / Accessories

Automotive

B2B / OfficeGeneral Merchant

Beauty

Consumer Electronics

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Video Shopping for Retail

Luxury / JewelryGift / Specialty

Health

Home and Bath

Outdoor

Pet

Toy / Child

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Agenda

Finding #1: Active and Widespread Means Higher Revenue

Finding #2: More Videos Watched Per Customer Translates to Higher AOV

Finding #3: Mobile Increasing in Importance

Conclusions

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Poll #1

Within your video program what directly correlates to higher revenue?

A. Number of live videos being watched B. Number of video distribution channelsC. More playsD. All the above

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Finding #1:

The More Active the Video Library, the Higher the Revenue.

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Percent Active Videos vs. Monthly Revenue

For each one percent increase in active videos, average monthly revenue increased by more than $13,000.

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From the Data:

• 62% of videos were “active”

• +1% = $13,092.84 more per month

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Finding #1 - Best Practices

Create and Maintain a Video Gallery

❏ Group your video content together

❏ Keep customers within your domain

❏ Send them back to buying pages

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Finding #1 - Best Practices

Distribute Videos Broadly

❏ High traffic Sites (Facebook, Twitter, YouTube, Affiliates, Blogs)

❏ Additional channel = 21,160 more plays per quarter

❏ More plays = more revenue

❏ Additional channel = $50,513.47 in average quarterly revenue

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Finding #2:

More Videos Watched Per Customer Translates to Higher

AOV

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From the data:

Customers that watched 10+ videos spent an average 119% MORE than those that watched

just one video.

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Number of Videos Watched vs. Average Order Value

Customers who watch 10 or more videos spend 119 percent more than customers who watch just one video.

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Finding #2 - Best Practices

The right video location is key!

❏ Make video callouts simple and obvious

❏ Above the fold placement

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Finding #2 - Best Practices

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Finding #2 - Best Practices

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Finding #2 - Best Practices

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Finding #2 - Best Practices

Keep Content Relevant!

❏ Offer related videos - think complimentary!

❏ Avoid general content on product specific pages

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Finding #2 - Best Practices

Find Video Length Sweet Spot

❏ Ideal length for product video is less than 30 seconds

❏ Caveat: Products that are complex or have a very high

price point often benefit from a longer video.

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Ideal Video Length

Average conversion rates for product videos that are less than 30 seconds are 89 percent higher than product videos that longer than 180 seconds.

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Finding #3

The Increasing Importance of Mobile

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Finding #3

❏ In 2013, mobile devices made up about 19% of e-commerce video plays

❏ Smartphones and tablets accounted for more than 25% of total video plays during Q2 2014

❏ Mobile device usage is on the rise.

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Percentage Of Device Used by Industry Category

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Finding #3 - Best Practices

❏ Don’t Take a “One Size Fits All” Approach

❏ Offer and Highlight Videos on Mobile Sites

❏ Don’t Forget About Mobile Apps

❏ Address the Difference Between Tablets and Smartphones

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Poll 2

What percent of your products have videos?

A. Few 0-25B. Some 25-50C. Most 50-75D. Nearly all 75-100+

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Conclusion #1

Video Greatly Increases Average Order Value (AOV)

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Percent of Product Pages with Video vs. Average Order Value

Retailers with video on most of their product pages have a 68 percent higher average order value than retailers that have video on just a few of their product pages.

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Conclusion #1

Watched video = more money spent

❏ AOV was at least 50 percent higher for video watchers for 57% of retailers

More product video placement = higher AOV

❏ Video on 50-75 percent of PDPs, AOV was ~ $300

❏ Video on 0-25 percent of PDPs, AOV of ~ $177

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Conclusion #2

Video Greatly Increases Conversion Rates

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Percent of Product Pages with Video vs. Conversion Rate

Retailers with video on most of their product pages realize a 79 percent higher conversion rate than those that have few videos.

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Conclusion #2

❏ 88% increased conversion rate when video was added to PDPs

❏ 35% reported 91 percent higher average for products with video

❏ >50% PDPs with video = 79% higher conversion than 0-25%

❏ >50% PDPs with video = 31% higher conversion than 25-50%

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•You can access past Liveclicker webinars on demand through our resource center: http://www.liveclicker.com/web/resources/webinars/

•If you have any questions about Liveclicker’s strategic services or VideoCommerce solution please reach out to our sales team at: sales@liveclicker.com

Interested in learning more?

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And the winner is…

Twitter Contest!

1 free $50 Apple gift card will be given out randomly to anyone who uses the hastag #videcommerce or mentions @videocommerce when referencing today’s webinar

@videocommerceHandles:@benkopettibiz - Ben@liveclicker

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Questions?