There’s a lot of talk about groundbreaking innovations in online retailing. In the past few years, we’ve heard some pretty bold predictions about how videos will change the way we buy and sell things online. While we still haven’t completely swapped all content for videos yet, video is still a very promising growth tool for ecommerce. Let’s have a look at fresh video stats for 2017 and what new trends we can expect to shape the ecommerce of tomorrow.
Video is still very effective in driving online sales
At the beginning of this year, Google revealed just how YouTube videos influence what, where, and how we shop. According to their data, 6 in 10 people who subscribe to YouTube would rather follow advice over what to buy from YouTube video creators than their favorite TV and movie stars.
The message is clear – online videos are getting very effective in convincing people to buy. Here are a few other video stats that support this view.
- A study by Animoto in 2015 revealed that 4x as many consumers would rather watch a video about a product than read about it.
- Earlier in 2017 Wyzowl revealed that 79% of consumers would use video to get information about a product than read the text on a page. That’s 10% increase since last year.
- 84% of consumers felt convinced enough to buy a product after watching a brand video about it.
- A study by Brightcove in October 2016 revealed that 47% of UK adult video viewers on social media watched brand videos while on social. 43% of them ended up buying products as a result.
The reasons behind video’s effectiveness are quite simple. 82% of consumers research products online before they commit to buying, either online or offline. According to insights by Google from March 2016, close to 50% of online users look for videos related to a product before they even visit a store to buy it. Videos work because they are easy to digest, entertaining, and memorable. eMarketer predicts that 65% of the UK population will be digital video viewers in 2017. This means that as more consumers get into the habit of watching videos online, they’ll be more susceptive to suggestions about which products or brands to buy based on the video content.
Social videos help create awareness for products and brands
2016 was a big year for video on social media. Over 8 billion videos were watched on Facebook daily. 10 billion of video stories are seen on Snapchat every day. Earlier this year YouTube announced that people are now watching a billion hours of videos (or 100,000 of years!) on its platform each day.
According to Social Media Examiner, about 60% of B2C marketers used videos as part of their social media strategy in 2016. Despite a stellar rise of video content on Instagram and Snapchat, YouTube still leads the way in terms of social video views. Approximately half of social video views happen on YouTube, 36% on Facebook, and 14% on other social platforms.
According to 2016 survey by Brightcove, 43% of consumers interact with brands on social media via video content. 31% of consumers list video as the most favorite type of branded content on social media. 46% of video viewers admitted they have bought something as a result of watching brand videos on social media. 32% said videos drove them to consider making a purchase.
Social video is important in creating the awareness for brands and their products. About 62% of consumers discover videos in their social news feeds. Video stats suggest we’ll see more ecommerce marketers expand their strategy into social videos as a way to generate interest for their brand and product range. According to HubSpot, 48% of marketers plan to work with YouTube videos in 2017.
Why does this matter for ecommerce? Shoppers are increasingly turning to social media, like YouTube, as the first step in discovering new brands, products, and services. For example, the influence of social videos is especially becoming apparent in the travel industry. Spikes in searches for videos about travel in Iceland coincide with the rise in bookings for this location. This means that in order to drive shoppers to their sites, retailers and brands need to engage meet them with relevant content (video) at the start of their journey (social media like YouTube, Instagram etc).
Video delivers solid ROI
63% of businesses in 2016 used video in some form. The value of video in terms of revenue returns becomes more apparent.
Video stats from the past couple of years reveal that investing in video marketing in profitable. In 2016 Animoto study discovered that 76.5% of small business owners and marketers see tangible results from using video in their marketing efforts. Businesses that use videos see on average 34% higher online conversion rates than those without videos.
According to Aberdeen Group, companies see 49% faster year-on-year revenue growth when they use videos. Videos contribute to multiple improvements in KPIs: boost in sales (identified by 81% of marketers), increase in traffic (76%), decrease in the volume of calls for customer support (53%).
Videos also bring other benefits, such as improvements in SEO. For example, websites with video see 41% more traffic from search engines. Their visitors also stay on average 81% longer.
These solid video stats encourage marketers to pursue video further. 34% of B2C marketers say video will be critical content in 2017. Just as many plan to start using videos in the coming months. The investments in the video are also about to increase for 62.6% of small business owners.
Video challenges for ecommerce
Even though all video stats point to fact that video is a lucrative endeavor for ecommerce, it does not come without its own set of challenges.
Video creation seems to be one of the prevailing problems.
- 36% of marketers face difficulties creating visual content.
- 1 in 4 small business owners feel they are falling behind on their video marketing efforts.
- 83% would like to produce more videos but are limited in time and resources.
- 31.7% of small business owners say they wished they had better video skills.
- Over 71% of marketers can afford to spend less than five hours a week on producing visual content like videos.
Does this mean that despite many of its benefits video is yet another unattainable project? Not necessarily. In 2017, online retailers and brands will seek new ways to streamline video creation. They’ll also look for ways to complement their own video content with videos created by customers, fans, influencers, and experts.
UGC video is a trend that will bloom in 2017, as ecommerce businesses look for new ways to improve their visual merchandising.
In 2017, 35% of marketers will spend over a third of their budgets on visual content, including videos. The motives for investing in the video are clear: they want to engage their customers, provide a better online experience, and also put their money into content that has a proven record of increasing sales. 27.6% of small businesses also say they will invest in the video because they feel the pressure to stay competitive with other players who already use videos. We’ll see some really interesting examples of how videos are used to both attract and convert online shoppers in ecommerce.