The Hidden Cost of Inexpensive Video
There is no question that video plays an imperative role in the development of the internet. In a previous article we pointed out how video can help increase conversion rates while decreasing cart abandonment for ecommerce sites, and it is an important component across multiple industries.
Where exactly it’s headed and what that direction means to consumers is still up for discussion. With Flash animation finally coming to an end in 2003, 2004 marked the expanding growth of online video with vloogers (videobloggers). YouTube and the Video iPod launched in 2005 and forever changed the way we interact personally and do business commercially. A vast growing trend in video is its adaptation by the eCommerce industry. While video for eCommerce is still in its infancy, flat or 360 degree images and static content are no longer enough to stay competitive in our constantly evolving market. Real video is the solution.
Recently at the IRCE 2010 conference in Chicago, I was speaking with Tyler Young from Street Side Auto about online video. He made a great comment, “Video is great, when the heck have you ever heard of video decreasing conversion?” He clearly saw the benefit of product video demos but his concern, like most, eventually migrated to cost. For many sites thinking about or already rolling out product video demos, the concern and focus is undoubtedly cost and ROI. Quality is of course a concern but if the marginal increase in your site’s conversion is comparable using lower quality video (without the ability to test), then it becomes difficult to justify high quality video content. However, what is the opportunity cost and what does this mean for the longevity of your video content? In some situations, it can actually cost less to produce professional video by leveraging a full-service studio such as with Video Aptitude.
Three ways to break down video quality in terms of production:
1. Use of a portable video camera on a tripod; set it up in an office with an employee doing the product demo shoot. This is common for companies moving quickly into online video.
2. Set up a small studio in the office with the same approach as #1 above, but with better equipment and basic lighting.
3. Leverage a full studio, custom scripting, professional video crews, sound and talent, product complimentary lighting and post production editing.
Visible Gains recently released a white paper titled, “Best practices for using video to convert visitors to leads” in which they presented the question: “What’s good enough for communicating your message that does not undermine your brand positioning?” The context of this section was to keep your videos authentic with basic production quality. Authentic, yes; authenticity is important but the idea of only doing what’s “good enough” fails to take into account “what might be better” or “what’s best for the long term”. We all want to be as cost efficient as possible and increase conversion today but we also need to look for conversion tomorrow and make efforts to improve brand image. In many cases, doing “what’s good enough” will fall short and likely result costing more in the long run.
Below are examples of 2 different video qualities. Note that we are looking at audio/video quality and not delivery/approach. A more scripted or more natural delivery style can be executed with both good and bad quality production.
As I mentioned above, video for eCommerce sites is still in stages of infancy so companies able to recognize the benefits are scrambling to integrate video into their sites (often with the marginal quality mentioned above). However, this trend, just like any other trend evolves and becomes more refined in time. Some companies are able to stay ahead of the curve but others, (typically those focused on the short term) fall to the way side. YouTube founder, Chad Hurley commented in a recent interview around YouTube’s 5-year anniversary, that he expects people to be on YouTube roughly 5 hours a day in the next 3 years. With unified WiFi on its way, greater web integration for mobile devices and flat panel TVs, people are already visiting sites and watching significantly more online video.
Video is integrating vertically. Companies such as LiveClicker and Overlay.tv provide helpful and engaging add-ons to your existing videos to further enhance user experience and conversion. Some of these add-ons include clickable hotspots to purchase products during a video and customer video reviews and they all fully integrate into your existing player. When the original video is high quality, it compliments high quality players, high quality photo hot spots and low quality is simply expected when it comes to customer review videos. However, when the quality of your product video demos are no different than the reviews posted by your customers it makes add-ons appear aesthetically out of place and it says something about your brand as a whole.
While marginal quality videos may work ok now, the market will eventually saturate. As more and more online retailers incorporate product video demos, customers will inevitably prefer higher quality video, company profiles and informative series content over inferior counterparts. If everyone has videos that are “just good enough” there will be no differentiation. While the Blair Witch Project was an interesting cinematographic concept, the film industry doesn’t shoot all movies that way for a reason.
When it comes to producing video in-house, depending on your decision making ability it can take some time to get everyone on board. Once everyone is on board, time is needed for content creation then actual production and editing. Outside of the time resources needed, in most cases it will not be the same production quality as leveraging a full studio.
Better quality videos have a longer shelf life and are more affordable than you think.
Shooting low to medium quality video in-house can actually be more expensive by:
1. Potentially having to re-shoot products in the future to keep up with better technology or increased pressure to compete.
2. Using up company resources for the extra time that usually does not get accounted for.
3. Opportunity cost if your competitors are producing great quality video content and you are not. Your conversion will suffer and customers will quickly want to experience a site with superior video quality.
If video is a definite direction you’re considering or already heading in and whether or not to shoot in house or use a full service production solution is in question, take a look at our recent article, In-House vs. Full Service Production and give us a call – you will likely be very surprised at our pricing for premium video content.
About Video Aptitude
Video Aptitude is a full service video strategy and production company for the web, providing turn-key services for eCommerce Sites, Manufacturers and Professional Service Firms. The Video Aptitude team handles strategic development, scripting and casting, production logistics, editing, and complete fulfillment to provide companies with premium video content and easy-install player code. Learn more about our services or contact us today