E-Commerce Videos Increase AOV and Conversions
E-commerce videos have a huge impact on average order values (AOV) and conversion rates according to new data from Liveclicker.
The data, which comes from the “Liveclicker Video Commerce Report: Using Video to Make a Positive Impact on E-Commerce,” shows that the AOV for customers that watch video on a product page is at least 50 percent higher than a site’s overall AOV for more than half of the retailers surveyed. Additionally, retailers with video on most of their product pages have a 68 percent higher AOV than retailers that have video on just a few of their product pages.
The study also found that the more active a retailer’s video library, which is determined by the number of videos played during the last 30 days, the higher the revenue it will generate. For instance, the data shows that each one percent increase in active videos resulted in an average monthly revenue increase of more than $13,000. Moreover, customers that watch more videos tend to have a higher AOV, with the data revealing that customers who watched 10 or more videos spent an average of $348.52 compared to $159.19 for those who just watched one video.
It is also important to note that Liveclicker found that mobile is unsurprisingly having an impact on videos. In fact, mobile devices made up about 19 percent of e-commerce video plays in 2013, and during the research period of 2014, the data shows that smartphones and tablets accounted for more than 25 percent of total video plays.
“As mobile devices become easier to shop with, they will make up a greater part of the e-commerce market, so it is important that consumers are able to engage with video on these devices,” said Ben Kopetti, director, video commerce strategy at Liveclicker. “Overall, our findings prove that video is a powerful way to engage shoppers and increase revenue. It’s no longer a ‘nice to have’ -- it should be a key instrument in every brand marketer’s orchestra.”