Video Statistics: The Impact of Video

Online Video Drives Conversion and Traffic While Reducing Returns and Service Costs

According to Internet Retailer, 52% of consumers say that watching product videos makes them more confident in their online purchase decisions. When a video is information-intensive, 66% of consumers will watch the video two or more times. (Internet Retailer, 2012)
Mediapost reports that product videos play a key role in consumer purchase decisions, citing a 9x increase in retail video views at the start of the 2011 holiday season. (MediaPost, 2012)
Internet Retailer reports that shoppers who viewed video on Stacks and Stacks product pages were 144% more likely to add to cart than other shoppers. (Internet Retailer, March 2011).
According to Website Magazine, video is a driver of consumer confidence. Consumers are willing to watch videos 60% of the time they are found, and 52% of consumers report that they are less likely to return a product after viewing a video. (Website Magazine, 2012)
Online retailer Living Direct found that videos boosted conversion as well as increasing time on site by 9%. (Internet Retailer, October 2010).
Visitors who view product videos are 85% more likely to buy than visitors who do not. (Internet Retailer, April 2010)
Retail site visitors who view video stay two minutes longer on average and are 64% more likely to purchase than other site visitors. (Comscore, August 2010)
More than three out of five consumers will spend at least two minutes watching a video that educates them about a product they plan to purchase, and 37% will watch three for more than three minutes. (MarketingCharts.com, 2012)
Professionally produced video optimized for eCommerce outperforms user-generated video (UGC video) by 30%, delivering a 24.7% lift as compared with an 18.7% lift for the UGC video. (Comscore, 2012)
Video results appear in about 70% of the top 100 listings, the type of content most often displayed in universal or blended search results. (Marketingweek, 2011)
Consumer video usage on retail and brand sites hit record numbers on retail and brand sites during the 2011 holiday season. Cyber Monday video views across the Invodo network were 897% higher than 2010, and Black Friday video views showed a 337% increase. (Website Magazine, December 2011)
Q4 2011 saw video views on retail and brand sites increase by more than 3x over Q4 2010. Users sharing video on retail and brand sites chose Facebook 46% of the time, with email accounting for 40% and Twitter capturing 14% of shares. (Invodo research, January 2012)
In tests merchants such as Archie McPhee experienced conversion rate increases averaging 30%, with a range from 12% to 115%. (Practical Ecommerce, November 2008)
Shoeline.com saw a 44% increase in online sales conversions by using videos to showcase their products. “With such positive results on our existing videos, the goal right now is to add video to as many of our products as possible,” says Frank Malsbenden, VP and GM of Vision Retailing Inc., the parent company of Shoeline.com. (Internet Retailer, January 2009)
Zappos reports a 6% to 30% increase in sales for products with video. (ReelSEO, December 2009)
Retail sites with video increase conversion by 30% and boost average ticket by 13%. (L2 Specialty Retail Report, September 2010)
Dell credits video with reducing service call volumes by 5%. Virgin Mobile expects video to reduce call volumes by 14% in 2011. (The Australian, December 2010)
Discovery Channel increased video streams 123% by properly implementing video sitemaps. (Discovery Digital Media, 2010)
20% of all males surveyed cited online video as a significant influence in recent purchases of jewelry and watches. (Ad-ology Media Influence on Consumer Choice survey, September 2008)
Ice.com found that viewers who chose to view video converted at a 400% increase over those who did not. Ice.com also credits video with decreasing returns by 25%. (Internet Retailer, December 2009)
Simple video merchandising best practices can nearly double the impact of eCommerce video (Invodo research, February 2010)
Shoppers who view video at Onlineshoes.com convert at a 45% higher rate than other shoppers, and the site has seen a 359% year-over-year increase in video views. Product pages with video have higher conversion rates than product pages without video. (Internet Retailer, February 2010)
A recent Cisco survey of US and UK consumers finds that shoppers prefer to research products online prior to making in-store purchases and recommends making video content available in-store by kiosk, touchscreen and smartphone integrations. (Internet Retailer, January 2011)
With proper optimization, video increases the chance of a front-page Google result by 53x. (Forrester, January 2010)
Consumer packaged goods firm Reckitt Benckiser found that online video delivered a 6% increase in in-store sales. (Reckitt Benckiser / Nielsen, May 2010)
eMarketer reports that for every dollar spent online, $3.45 is spent in-store.(eMarketer, February 2008)
Rich media ads containing video increase purchase intent by 1.16% and drive success more than four times that of Flash animation. In addition to the increase in purchase intent, video ads appear to increase consumer brand loyalty. Viewers favored a brand 2.30% more when exposed to rich media with a video ad opposed the tiny 0.15% increase simple Flash animation experienced. (DoubleClick, The Brand Value of Rich Media Ads, June 2009)

Video Brings Online and Offline Together

In Q1 of 2012, 45.9% of US online shoppers researched products in-store before ultimately purchasing online. (eMarketer, 2012)
Video traffic on mobile networks rose 10 percentage points over a one-year period and is now 50% of on traffic on wireless networks. (ByteMobile, 2012)
In February 2012, smartphones were nearly half (49.7%) of the US mobile market. That’s a 38% increase from February 2011. Smartphone users are increasingly consuming product video as part of their multichannel shopping experience, with 49% of smartphone owners watching at least one product video during a three-month period. (E-Commerce Times, 2012)
In a recent survey, 42% of tablet owners said that they had made a purchase on their device, compared with 29% of smartphone users. (GigOM, 2012)
In-store shoppers use their smartphones to access a variety of information, with 65% of shoppers accessing the retailer’s own website, 46% of shoppers accessing a competitor’s website, and 26% of shoppers accessing comparison shopping sites such as Shopzilla and shopping.com. (eMarketer, 2012)
By 2014, there will be more mobile Internet users than desktop/laptop users. And 50% of local searches are already done on mobile devices. (Microsoft Tag Mobile Marketing Report, 2011)
Over 40% of tablet use occurs outside the home. Tablet users prefer tablets to personal computing for a variety of uses including watching video (67%) and shopping (52%). (Online Publishing Association, 2011)
Mobile commerce will reach $119 billion by 2015. (MobiThinking, 2011)
84% of smartphone owners use their devices to search local retailers, and 68% search for pricing information. (ROI Research Inc, 2011)
45% of in-store visitors pay a visit to homedepot.com first. – Hal Lawton, President Home Depot Online (Retailgeek.com, 2011)
“We know that 60% of our U.S. store sales are influenced by our customers’ experience on bestbuy.com” – Brian Dunn, CEO Best Buy (Retailgeek.com, 2011)
46% of shoppers who use mobile devices in stores used them to visit a competitor’s website. (Forsee Results, 2010)
66% of smartphone users have tried a product in-store and then purchased from another retailer online. The pattern is most pronounced in consumer electronics with 58% of users trying products in-store and then purchasing from a competitor’s website, while 40% of users did the same for shoes and apparel. (Mediapost, 2011)
A Demandware survey showed that 83% of smartphone users considered their phone more valuable than any other in-store technology for shopping, and 69% trust Web data more than they trust information from a sales associate. (Point of Sale News, May 2011)
Only 16% of consumers believe that a store associate is the best source of information, but 43% of consumers place more trust in a sales associate aided by a Web-enabled device. (Point of Sale News, May 2011)
There were nearly 25 million mobile video viewers at the end of 2010, an increase of 40% over the previous year.77% of mobile video viewers report watching more mobile video than they did one year ago. (eMarketer, 2010)
93% of smartphone users use their devices in the home, and almost 50% of users watch videos on their smartphones. 90% of smartphone searches result in an action such as a purchase or a visit to a business. (Google Blog, April 2011)
In the first quarter of 2011, QR code scans increased 181% over the previous quarter for US smartphone users. (eMarketer, May 2011)
A recent study by Vision Critical found that 56% of users had seen a QR code on a product, more than in any other location. (eMarketer, May 2011)
Based on a survey of 138 companies, there were 13 times as many QR code scans in December of 2010 as there were at the start of the year. (BeQRious, 2011)
79% of smartphone owners use their devices to aid in shopping, and 74% of smartphone shoppers make a purchase (online or in-store) as a result. (Google Blog, April 2011)
The majority of QR code scans are to access product information, and 25% of QR code scans are to access video content. (Loyalty360, 2011)
87% of QR code users are using them to get additional product information, and QR code scans grew by 1200% in the last six months of 2010. (Mobio Identity Systems, 2011)

Video Drives Effective Email Marketing

28% of smartphone owners will watch videos on their phones in an average month (Experian 2012 Digital Marketer: Benchmark and Trend Report)
When marketers used the word “video” in an email subject line, open rates rose 7% to 13% (Experian 2012 Digital Marketer: Benchmark and Trend Report)
Video in email marketing has been shown to increase click-through rates by over 96%. In response, the number of marketers planning to use video in email campaigns has increased 5x since the beginning of 2009. (Implix 2010 Email Marketing Trends Survey)
A recent study by Forrester showed that video increased email click-through rates 2x-3x.(Forrester, 2010)
In tests, marketing automation provider Eloqua found that video in an introductory email campaign led to a 75% reduction in subscriber opt-outs. (Eloqua, 2010)
In one campaign including video in an email campaign drove a 51% increase in subscriber-to-lead conversion. (Blue Sky Factory Webinar, 2010)

Consumers Use and Trust Online Video

In a keynote address at CES, YouTube’s Vice President of Global Content Robert Kyncl said that video would soon be 90% of Internet traffic.(Forbes, 2012)
Affluent consumers prefer video and search to other digital advertising formats, as 41% of affluent online shoppers reported to eMarketer that they took an action after seeing one of these two ad formats. (eMarketer, August 2011)
Frequent online shoppers value video more heavily than other shoppers. 46% of frequent online shoppers prefer shopping on sites with video, compared with 30% of infrequent online shoppers. (Internet Retailer, November 2010)
In December of 2010, 88.6 million people watched online video on an average day in, up 32 percent from December 2009. The average American spent more than 14 hours watching online video in December, up 12 percent over the previous year and streamed a record 201 videos, an 8 percent increase.(Comscore, February 2011)
Forbes Insight found that 59% of senior executives prefer to watch video instead of reading text, if both are available on the same page. 80% of executives are watching more online video today than they were a year ago. (Forbes Insight, December 2010)
Over 90% of shoppers surveyed found video useful in making purchase decisions, according to a study of Swimwear Boutique customers. (Internet Retailer, October 2010)
From July 2009 through July 2010, the number of US video viewers on retail sites grew 40%, outpacing 17% growth in the number of total US online video viewers. 96% of online shoppers also watch online video. (Comscore, August 2010)
According to Cisco, video will increase from 30% of Internet traffic to 90% of Internet traffic by 2013. (Cisco, 2010)
Video views doubled from 14.8 billion to 33.2 billion between January 2009 and December 2009. 86.5% of all US Internet users watched online video during the month. The average viewer watched 187 videos and 12.7 hours of online video during the month. (Comscore, February 2010)
A minute of video is worth 1.8 million words according to Dr. James McQuivey of Forrester Research. (Forrester, January 2009)

Businesses are Implementing Online Video

According to a survey by the Content Marketing Institute, 50% of manufacturers surveyed had established a YouTube presence for brand-building and connecting directly with consumers. (Industrial Marketing Today, 2011)
The eTailing Group found that 73% of online retailers used video on product pages in 2010, up from 55% in 2009 and only 20% in 2005. 74% of the top 50 retailers used product videos, 40% used category videos, and 38% used other types of informational videos. (eMarketer, February 2011)
Video and other multi-media product viewing options were rated more effective than any other site initiatives in an Adobe survey of almost 2,000 interactive marketers. (Adobe, May 2011)
33% of online retailers plan to add video to their sites in 2010, making it a higher priority than any other advanced feature. (eMarketer, March 2010)
Leading online retailers added video to their sites in 2009 to increase online sales. PetsUnited, the owner of 10 eCommerce sites, saw a 50% jump in average sales when shoppers made a purchase after viewing a video. (eMarketer, January 2009)
eCommerce video success can be clearly measured. Conversion rate, cart abandons, increased traffic and View Rate (VR) are key to demonstrating success. (Practical Ecommerce, March 2010)
eMarketer senior analyst Jeffrey Grau characterizes the benefits of video as including “…a lower number of abandoned shopping carts, reduced return rates, and higher sales.” (eMarketer, January 2009)
Search engine optimization (SEO) and online video were the two top priorities for online retailers in 2009. Online shoppers who viewed video had a larger shopping ticket than those who viewed traditional rich media such as flash animations. (Internet Retailer, January 2009)