SOURCE: Treepodia

Treepodia

March 29, 2010 08:00 ET

Treepodia Gets Serious About ROI of Product Videos With New Control Group Measurement Tool

New Technology Helps E-Commerce Companies Accurately Measure ROI of Online Product Videos; Compares Behavior of Site Visitors Exposed to Video to Behavior of Visitors Who Aren't

BOSTON, MA--(Marketwire - March 29, 2010) -   Treepodia (www.treepodia.com), an early market leader in automated online product video (http://www.treepodia.com) technology and services, announced today the launch of its Control Group Measurement Tool, a new enhancement to the Treepodia Smart Video Platform (http://www.treepodia.com/services.html) that accurately measures the impact of product videos on sales and conversions.

The new Control Group tool offers e-commerce and other online businesses a true view of how site visitors respond to the presentation of product videos (http://www.treepodia.com/services.html), by comparing the click-through and purchase behavior of visitors given the option to view video to those who are not.

"It's important that our customers have an accurate understanding of how online product videos work for their business. It's not enough to just measure the before and after effect of video on conversion rates, because other variables may come into play," said Dr. Melody King, vice president of marketing for Treepodia. "To understand the pure impact of video on an online business, it's necessary to do a side-by-side comparison of behaviors of people given the option to watch a video and the behaviors of people who aren't. In this way, you can see that when all variables are exactly the same except for the presence of video, the videos have a dramatic impact -- an average conversion rate increase of 85%, to be exact."

To get a realistic view of the impact online product videos have on a web site, Treepodia's new Control Group tool creates tests where a small percentage of site visitors are not given the opportunity to watch a video, and then measures their purchase behavior against the behavior of those who ARE presented with video. In all cases, the tests indicate that whether people actually watch the videos or not -- the conversion rate is always higher among visitors presented with a video than among those who are not. "This speaks loudly to the value product videos bring to an online business in demonstrating credibility and trustworthiness," said King.

Online Product Videos Sell -- Whether Watched or Not

Recent tests conducted by Treepodia using its Control Group tool indicate that when shoppers are presented with the option to watch a video -- whether they do so or not -- the conversion rates will be higher than when shoppers don't have the option to watch a video.

For example, in one test conducted for an online retail client, the conversion rate (CVR) among those not presented with video was 1.04%. When the option to watch a video was added, the CVR among those who chose not to watch the video jumped to 1.47%; for those who did watch the video it went up to 4.06%.

King said that these results are typical for e-commerce companies that add product videos to their web sites. With such dramatic conversion rate increases resulting from giving site visitors the ability to watch video, Treepodia offers all customers a guaranteed four-times ROI when they deploy Treepodia's automated video platform.

"It's no surprise that when customers watch video, their conversion numbers will be higher than those who don't watch," said King. "Still, the data is compelling: just the mere presence of video gives people a stronger inclination to purchase a product -- perhaps because it tells them that the product is trustworthy enough to be shown in full dimension, or because it tells the customer that the retailer cares enough to give them the best experience possible. Whatever the case, retailers that don't yet have video on their sites are missing out on a tremendous opportunity to drive more sales and foster more engaging relationships with their customers," she said.

The Treepodia Smart Video Platform

Treepodia's new Control Group Measurement Tool is a new feature of its Smart Video Platform. The Smart Video Platform eliminates the high initiation costs of video production by allowing customers to use their existing images and other types of marketing content to create engaging videos. Within 24 hours, Treepodia can create an entire product video catalog which can be updated on a continual basis to reflect new prices, special offers and more. 

Additionally, Treepodia's Smart Video Platform takes video to a new level with its built-in A/B testing mechanism, which tests the effectiveness of each video version and automatically promotes top-performers to ensure the highest conversion rate and ROI -- on a per product basis. 

The Treepodia Smart Video Platform works on a cost per view model, without production fees or contract terms, and provides a guaranteed four-fold ROI.

About Treepodia, Ltd.
 
Founded in 2007 by knowledgeable and experienced e-commerce professionals, Treepodia is the leading video platform (http://www.treepodia.com/services.html) provider for online retailers. The Treepodia Smart Video Platform enables online merchants to cover their entire product catalog with effective and engaging video content in just 24 hours. Treepodia offers a unique cost per view model with ROI guaranteed. The company has more than 50 clients worldwide, including Ice.com, OnlineGolf, Forzieri, EyeBuyDirect, Emjoi, BedBathStore and more.

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