Shopping trends may come and go, but the use of videos in ecommerce is not only here to stay; it’s evolving in new and exciting ways.
Nobody can deny the importance of video as part of the shopping experience. In fact, for the third consecutive year, video is the number one type of content used by marketers to sell both products and services.
Shoppable videos take it one step further.
Compared with passive videos, interactive videos have a 3x longer viewing time, 2x the number of conversions, and 14x the number of click-throughs to purchase.
It’s really a no-brainer for companies: shoppable interactive video is here to stay, shaping the future of ecommerce.
Shoppable video offers countless advantages to ecommerce brands. It can help create brand loyalty, improve conversion rates, increase customer engagement, provide invaluable user analytics, and create a better customer experience overall.
The Rise of Shoppable Video
Shoppable video usage is on the rise, but where did it all begin?
The origins of shoppable videos can be traced back to luxury brand SSENSE which, in 2012, created a music video called I Think She Ready. It featured big names in the industry—Iggy Azalea, Diplo, and FKi—wearing the brand’s clothing, all of which was tagged and available for purchase through the video.
It was then that the interactive shoppable video was born.
It took brands a while to adopt this novel concept, mainly due to difficulties in calculating the ROI and producing videos at scale. However, its popularity has since exploded as technology improves, and marketers constantly seek creative ways to boost sales.
In fact, it got so popular that the use of shoppable video increased by 25% in 2018, 33% in 2019, and 40% in 2020.
However, it’s still a new concept for many ecommerce companies, as Donna Chan, User Researcher at COTU, found out during her conversations with potential customers.
Many brand representatives responded to her with comments like, “Oooh, this is exciting, but I have no idea what to do with it. Tell me how to test it,” or “I know this is new, this seems innovative, I’m excited to try it out and see how it can work best for us.”
The following statistics show how consumers and marketers favor shoppable videos and interactive content.
- Marketers who implement interactive videos see 25% better conversion rates, 18% more leads, 21% more web traffic, 11% more referrals, and 14% more sales.
- 64% of consumers are likely to spend more time with an interactive video.
- Interactive content generates conversions ”very well” or “moderately well” 70% of the time compared with 36% for passive content.
- 87% of marketers agree that interactive content grabs readers’ attention more effectively than static content.
- 54% of consumers want to see more video content from the brands and businesses they like.
Why Shoppable Video Is The Future Of Ecommerce
Shoppable videos are like store windows for online brands that are open 24-7-365. People are in a constant state of discovery since there is so much content for them to consume. Companies and brands have never before had this unique opportunity to connect with their consumers at a moment when they are engaged and ready to buy.
According to a study, 75% of shoppers maintained that YouTube improved the traditional shopping experience as it “delivered unexpected inspiration.”
The tech-savvy consumers of the future are expected to have the greatest spending power in history. A shoppable video is a perfect medium for gaining their attention. It allows brands to show exactly what they stand for while satisfying the next generation’s need for instant gratification.
During market research, a consumer told Donna that they like shoppable videos because they are “subtle enough so that they don’t take away from the experience of what I’m watching, but enough to pique my interest.”
Let’s further explore what makes shoppable videos so popular among consumers and marketers alike and why they’re likely to be the future of ecommerce.
Decreases Friction In Buyer Journey
One constant challenge companies face is cart abandonment. In fact, 69% of ecommerce buys are left incomplete. In many cases, a poor shopping experience is blamed. That’s why companies are always on the lookout for tools that can provide their buyers with a frictionless shopping experience, one that takes them from inspiration to checkout as quickly and smoothly as possible.
Typically, when a person sees a product in a video and wants to buy it, they’d have to follow a link in the video description or look for it on the internet. Then they will read about the product, add it to the cart, and finally check out. Potential buyers can easily get sidetracked at each additional step between inspiration and purchase.
A user told Donna, “I’ll see an ad for something, and I’ll want it. But by the time I’m Googling, if it’s hard to find, I give up. With shoppable video, knowing that it’s one-click, I love this concept, I love this idea.”
COTU allows you to add various buttons, product images, and hotspots to your video. Buyers can click on a hotspot or button, see the product and follow the link to buy it right from this shoppable video. Such a frictionless buying experience shortens the buyer’s journey and increases the chance of a successful purchase.
Companies can boost customer engagement by serving up personalized content. Buyers today are more demanding than ever, with 72% saying they will only engage with personalized messaging.
There are different ways brands can do this. This includes:
- Branching as it allows customers to determine the direction of their viewing experience.
- Addressing viewers by their names and interests in the video, using text-based personalization.
- Personalization based on analytics data and insights collected from the video, such as which products were clicked most often and which led to conversion.
Makes Shoppertainment Possible
Shoppertainment refers to the ways retailers increase sales by creating shopping experiences that are more entertaining and engaging.
When a buyer visits a website and finds an entertaining shoppable video and products of high quality, their overall experience improves, and they will be more likely to buy from them. They might even remember their experience and share the video with their friends. In short, companies that get their shoppable videos right will be rewarded with more engaged customers and higher sales.
Hinners explains, “Giving viewers the opportunity to take action by signing up for a demo, purchasing a product, or adding more products to their cart means they are interacting with the content and are highly engaged. You’re warming the leads already, and you’re giving them the opportunity to purchase the product.”
Shoppable Content Can Shape The Next Generation’s Shopping Habits
Shopping habits and consumer trends are changing faster than ever. Shoppable videos appeal to current generations because they’re interactive and engaging. They also fulfill their desire for instant gratification.
These videos must also be influencing the next generation’s shopping habits and customer experience expectations. Let’s have a quick look at how three tech-savvy generations approach shopping. (Information was taken from the following sources: PEW Research, Locomotive Content, and Forbes.)
Millennials (Born between 1981 and 1996)
- They spend considerably on tech, clothing, groceries, and restaurants.
- Many have fewer savings and more debt than previous generations.
- Social responsibility and environmental friendliness are priorities.
- They’re interested in discounts and value price over recommendations, reputation, and quality.
- They primarily use social media and the internet for shopping.
Gen Z (Born between 1997 and 2012)
- They are willing to spend money on sustainable, high-quality products.
- Brand transparency and authenticity are among their priorities.
- Social media and influencer marketing heavily influence them.
- They’re connected to tech but not as hyper-connected as Gen Alpha.
- Brand personalization is crucial to them, but they also value data privacy.
Gen Alpha (Born between 2010 and 2024)
- These are value-driven consumers.
- They are hyper-connected to technology.
- They want to make a difference in the world.
- They’re interested in the ethical credentials of the companies they work with.
- Immediacy is a deciding factor.
Although Alphas are young, they influence the purchasing decisions of 81% of Millennial parents around the world.
Shoppable video is a format that can fulfill the next generations’ expectations as they provide a shopping experience that benefits both brands and customers.
Interactive videos can make shopping even more entertaining and indulging for Gen Z and Gen Alpha. One can expect them to rely more heavily on quick information and an easy checkout process.
It’ll be interesting to see how shoppable videos change shape and evolve in the future, with so many shoppable apps competing with each other for industry dominance. User-generated content (UGC) is on the rise, and some apps are already popular for shoppable UGC content.
Given the rise of augmented reality (AR), virtual reality (VR), and artificial intelligence (AI), it will be interesting to see how ecommerce and shoppable videos come together in the future to create a unique shopping experience, increase competition for consumer attention, and increase consumer expectations from brands.
How Marketers Can Use COTU To Engage Customers
COTU is a fully interactive video platform that allows companies to bring their products to life by connecting them directly with their customers. It uses advanced technology that enables brands to keep pace with the ever-changing shopping habits and expectations of consumers.
The competition for consumer attention will only increase with time as shoppers increasingly prefer brands that offer simple, quick, and personalized shopping solutions. COTU’s shoppable video software fits right in as it makes creating, sharing, and measuring customer interaction quick and easy for brands.
Companies can use COTU to eliminate friction and simplify their buying process. The software also measures consumer data which brands can use for decision-making and improving the customer experience for their target audience. The best thing about it is that It requires no coding or technical knowledge.
Here’s how COTU specifically helps brands engage their customers:
- It allows viewers to convert in the video, whether it’s ‘click and shop,’ ‘click and learn more,’ ‘click and sign up,’ or ‘click and request a demo.’
- It can be used on homepages and ads alike.
- Users don’t have to search for anything separately on Google.
- Companies can A/B test COTU video vs. regular video to gauge user engagement.
- Advanced analytics can help brands test different audiences.
Talking about COTU’s future, Hinners says, “we hope that everyone who is using COTU will be able to utilize it on their homepages, ads and direct traffic back to their site so that people can use its full functionality.”
The future of shoppable videos and ecommerce cannot be separated from each other at this point. With technological advancements, software companies are adding more functionalities to their tools and offering more ways to get data, analyze it, and use it to improve customer experience and meet the next generation’s increasing demands.
If you want to stay ahead of the curve, request a demo today and see firsthand all of the incredible things COTU can do for your brand.