Video analytics and profit, what do they have in common? More than you may think.
Video analytics in ecommerce can provide a meaningful interpretation of raw data to reveal profitable patterns of product pages with video. Video data includes a variety of information such as: how many plays a video has, how long it is watched per play, whether it has been played again, and much more. Combining video data with information about which product, brand, or category the video belongs within creates a unique data point. The combination of these varibles and other variables such as product purchases, product price, and number of products in a single video can be used to gather particular insights through simple calculations. The amalgamation of hundreds of thousands of datapoints has been used to determine the power of video analytics in ecommerce.
Videos Increase Ecommerce Purchase Rates
According to a study by Wyzowl, where both text and video are available on the same web page, 69% of users would prefer to watch video to learn about a product or service.1 Nonetheless, 77% of consumers have been convinced to purchase a product after watching a video about it. Studying video data and the relationship videos have with add-to-cart rate is an effective strategy to see how much purchases are positively affected by video.
A sample of over 800 DemoUp product videos, and thousands of individual statistics for each video, found that although on average only 12% of page visitors watch a product video, 25% of the product’s purchases occur from those who watch a product video.
The 25% share of purchases made by visitors is double that of its own 12% share of visits. The significance of this figure is quite revealing. This finding correlates with the finding revealed by the Wyzowl study. One can draw the conclusion that a product video influences the page visitor to make a purchase versus a visitor who does not watch a product video.
Video Analytics of Views Show a Need for Constantly Updating Your Video Stock
The most common video analytic researched is the number of views. This is mostly due to how easily accessible this figure is. However, this figure only distinguishes the most popular videos from the least popular.
Cool Blue is a Netherlands company that creates their own product videos. According to an article by Thijs Viguurs, Cool Blue has over 30 million views on their YouTube channel of 6744 videos, however, their top 500 videos make up about 18 million of these views.2 – It may come to no surprise, the top 500 videos are also the top selling products.
The DemoUp database of 50,000 videos follows a similar trend when considering the top 500 videos.
Although top products account for approximately 30% of overall views, view rate on top products severely declines after product launch. Therefore, it is highly critical to use product videos immediately after release to ensure maximum view rate potential.
Although other videos may have significantly less views it may be caused by their niche characteristics. Therefore, less views does not necessarily mean less sales. As a matter of fact, videos should be looked at as a whole when considering their overall effect on profits of a retailer.
Two main factors contribute to the distribution of overall video views: video length and the product price.
Video Analytics of Length: The Shorter the Better
Wistia Analytics conducted a study of how video length affects the attention of a user.3 Two significant findings can be taken away from this study. Firstly, there is a decline in attention as length of video increases. Secondly, the last 10% of a video also faces a significant decline in attention. Therefore, if your video features a call-to-action, it is best to place it at the beginning or middle of the video where attention is at its highest.
According to data collected from a sample of DemoUp product videos average attention span is negatively correlated with video length. Similarly to the Wistia study, as video length increases, the attention of the user declines.
Therefore, a video of 0-30 seconds in length will have nearly 30% more attention than a video over 300 seconds.
Product Price: Unkown Products Profit the Most From Videos
The same sample of videos shows a downward trend when considering product price versus the video view rate on the product’s page.
As the price of a product decreases, web page visitors are more likely to watch the video. This may be due to visitor familiarity with expensive products and prior research undertaken when making a large purchase.
However, this opens another topic for discussion – which product categories are ecommerce shoppers most interested in? This may be better understood by looking at the data by product category, rather than everything as a whole.
Ecommerce Add-to-Cart Rate by Product Category
Statistics can vary due to a variety of factors, distinguishing between product categories may reveal trends of consumers. For example, add-to-cart rate differs between product categories depending on how much research is required before purchasing a product. A study by Invodo consisting of a sample of over 1,000 consumers, who’ve used online ecommerce at least 4 times and spent over $250 each time, found the most wanted categories for video content were the following:4
Using video analytics from DemoUp’s database the add-to-cart rate increases with these categories when the product video is watched.
One of the reasons the add-to-cart rate increases when video content is available is because the more a shopper needs to research to make sure the product fits their lifestyles, the greater the importance of visual content.
Product Pages with Videos
Overall, video analytics can provide a profitable insight towards your current marketing strategies. Knowledge is power, and it may just be that you also have a large amount of data filled with diamonds that may lead to a more profitable business tactic through video data analysis.
DemoUp provides a wide range of video analytics accessible in seconds. To find out how many videos your shop can use, follow this link, and unleash your shops’ potential.