One of the most significant changes caused by the Covid-19 pandemic was the move to video as people’s primary method of connection. And although that has waned as face-to-face interaction has returned, video is still far more significant than it once was.
That idea underpinned Dan Sands’ session on interactive video at Retail Media Summit UK. Sands, who is Director Retail Partnerships (EMEA) at end-to-end video commerce platform Firework, cited statistics showing that:
more than 55% of shoppers worldwide say they use online video while shopping in store;
80% of individuals alternate between online search and video when searching for products;
89% of people say viewing a video has convinced them to purchase a product or service.
This shows video works across the entire purchase funnel to increase customer engagement as shoppers seek a human connection. It’s already used in search, traditional media (including new entrants such as DOOH and CTV), social media (e.g. TikTok, Reels and YouTube), and in-store (on mobile apps and digital screens). Where there’s room for improvement is on the web. Some ecommerce sites are still very transactional, and based mainly on text and images.
Sands took us through examples of two approaches to interactive video in a retail media environment:
1. Short interactive video modules – these are being used by brands such as Samsung and Pepsico to introduce products, but they’re also shoppable, to drive sales. Such applications result in CTRs of up to 5%, watch times of up to 13 seconds, and deliver conversion rates 60% higher and order values 30% higher than on sites not using video.
2. Video showrooms – Texas-based grocery chain The Fresh Market releases a pre- recorded, long-form video every week. These are editorially led – e.g. ideas for Mother’s Day – but bring in partners for monetisation. There’s AI-moderated chat, and everything on-screen is shoppable. These deliver average watch times of 17 minutes with a 19% CTR and 31% engagement rate, plus an 81% higher transaction value for engaged versus non-engaged shoppers.
In summary, here are our key takeaways:
Challenge your customer centricity – are you really putting the customer at the heart of what you do?
Repurpose or re-imagine your video content – what works in your social channels won’t necessarily be right for a retail environment;
Emotional connection relies on authenticity – and authentic content delivers the best performance;
Be brave, start now – start small, test and learn. It’s low-risk, because interactive video isn’t going away any time soon.
Register your interest for next years Retail Media Summit UK
This year Retail Media Summit UK, or as we like to call it “The Retail Media event of the year”, brought together a room full of cross-atlantic industry professionals to delve deeper into the value of retail media for both retailers & brands. Both the UK and US markets were represented by true experts, giving everyone an opportunity to learn from the challenges and opportunities the other is facing.
We’re incredibly excited to be once again co-hosting next year's Summit with the Path to Purchase Institute (P2PI), the leading publication in the United States that offers consumer product marketing executives and brand managers a holistic, 360-degree view of the shopper journey.
Don't miss out on the opportunity to be part of this dynamic community shaping the future of retail media. Register your interest today to stay informed and join us as we continue to unlock the potential of retail media together.