As we've posted many times in the past, online video has emerged as an exciting and effective new method of marketing ecommerce products and services online. Just a few weeks back, we covered some research recently released from comScore which details the benefits of utilizing online video for products in ecommerce. According to the research, the number of online shoppers who watched retail videos grew 40% in 2008 over 2007. We also know that ecommerce merchants are starting to dive into online video more aggressively; 43.3% of merchants stated that they planned to update their e-commerce sites with online video in 2009. Additionally, according to research from eMarketer, retail video viewers represented about 23% of total visitors to retail websites in October 2008, up from 17% in October 2007.
As for the benefits of online video when it comes to e-commerce, there are many including a decrease in shopping cart abandonment rates, reduction in merchandice returns, and an overall lift in product sales due to a more engaging experience which leads to a more loyal base of customers. A video can often times provide the final push that an online shopper needs to push the final "checkout" button.
At ReelSEO, I've often post about our friends at Ooyala we proudly utilize Ooyala for the majority of videos that we release on our site . Ooyala, Inc. is an online video CMS and monetization solutions provider founded by Bismarck Lepe, Belsasar Lepe, and Sean Knapp who left Google, Inc. in early 2007 to start Ooyala. With regard to ecommerce, a number of well-known eCommerce clients are using Ooyala's Backlot product to promote, sell, and support commercial products or services. Some of these clients include Betty Mills, , Edelbrock, and Armani.
Betty Mills uses videos to educate viewers on selecting products based on features, environment, and scenarios. Through their "Featured Clip" video section, Betty Mills presents customer testimonials. This is where product enthusiasts discuss and demonstrate tips and techniques. Cumulatively, Ooyala's retail customers have seen a 40% increase in the number of unique plays after incorporating video on their home pages.
"It is exciting to see the variety of implementations coming from our eCommerce customers and the new creative ways of using video. Because our platform is so flexible and easy to use, we are seeing great success stories every day with lower management costs, higher engagement and increased sales. We anticipate more and more retailers to supplement their online experience with video and look forward to not only making it easier for them to do so, but more valuable as well," stated JR Becko, Sales Director at Ooyala.
With Ooyala Backlot's syndication controls, retailers can also share and distribute content to a variety of video destination sites, extending the awareness and purchasing potential of their products.
In the coming month, Ooyala will be announcing additional controls to drive video commerce initiatives. We will let you know when we have more that we can share.