Justin Foster, Founder, Video Commerce Consortium

Alison Jeske, Director Product Management, drugstore.com

Jon Nordmark, Founder & CEO, Ebags.comXavier Casanova, Founder & CEO, Liveclicker

“Will It Blend” over ~100MM views and counting

1994

first visitor

eCom sales 1% of total retail

2000 2004 20081996 2002 2006

eCom sales 4.2% of retail

$1M web salesfirst profit founded

IPO

bankruptopen to all

Will It Blend video viewed 100M times

Search Engine Marketing - CPC

Overture first $100M revenue

Email Marketing - CPM

Digital Impact first email

Affiliate marketing - CPA

Commission Junction formed

Banner advertising - CPM

DoubleClick - first banner

Video Commerce

ShopNBC.tv launches

Social Marketing

Friendster founded

Self-Produced Videos: build credibility, add value, humanize the experience

Acquire content from customers Build a trust relationship

Q: What is preventing you from starting out with video commerce or expanding your current video commerce initiatives?

0% 5% 10% 15% 20% 25%

Goes against the culture or brand

High production costs

Poor ROI

Lack of interest

None of the above

No executive buy-in

Lack of industry case studies

Lack of resources

Unproven ROI

Lack of knowledge

Don't know where to start

Source: Video Commerce Consortium Survey. July 7, 2008

Past : Launch of new Beauty.com site in November 2007 – included video

▪ Video library (self-produced and vendor videos)▪ Brand boutique videos (e.g. Jonathan)▪ Objectives:

Increase basket size Increase time on site Provide enhanced shopping experience for prestige

beauty customers▪ What did we achieve?

Basket size and time on site difficult to directly correlate to video viewing (new features also launched w/ new site)

Positive feedback from customers

8

Pop up window displays video

Present: New tools and expansion of video into drugstore.com

▪ Partnered with Liveclicker to provide rich tools for driving that intersection of video and commerce

▪ Launched Beauty.com w/ Liveclicker in July ▪ Launched drugstore.com in September▪ Monitoring SEO benefits▪ Building out a video library ▪ Securing content from vendors▪ Adding video into our product setup procedures▪ Measure, measure, measure – analyze!

What does video commerce look like to drugstore.com?

’Buy’ just one click away Product links in video Sharing Rating of videos Comments Access to related videos/whole library SEO benefits Push to YouTube, Twitter, Google Video

Over 30 videos on Beauty.com

Still early to determine the basket (order value) impacts

Other exciting metrics – newest video with a 94% continue to watch past 10 sec mark;42.5% watch whole video

Future: Broaden access to video throughout the

site (product details pages; tutorials on new site features)

Develop in-house videos (videos for our “brand”)

Facility for customers to upload video Continue to monitor and analyze results

(orders!)

Jon Nordmark, Founder, eBags.com >$100MM 2007 revenues Growing 25%+ annually Launched video in early 2008

Initial pilot on video site Later rollout to brand and product pages on

eBags.com

QVC engagement Experiments within

photo studio Put existing assets to

use Not sure how to

institutionalize it with existing resources

Richer customer experience, SEO dominance

Leverage supplier content (while thrilling them) Access professional quality assets; very low

cost

Group A – No Video

Group B – With Video

# Product pages served

25,000 25,000

Conversion rate (clicked play button)

6.63% 10.00%

Conversion rate

(watched entire video)

6.63% 15.84%

Conversion rate increase (clicked play

button)

N/A50.1%

Conversion rate increase

(watched entire video)

N/A 138.9%

Launched in 2008Prominent SEO placement

“ Conversion rates increased. Plus, we quickly validated the SEO pilot.” - Jon Nordmark, Founder, eBags.com

Future: Good site experience = better conversion

rates▪ Continue producing video assets▪ More experimentation

▪ Testing “demonstration” vs. “promotional”▪ Placement on site pages▪ Integration into marketing streams

Lean on suppliers for more video content Introduce customer-generated video

content

Largest and fastest-growing consortium of interactive marketers seeking to learn about and advance the use of video in e-commerce

www.video-commerce.org

Justin Foster, Founder, Video Commerce Consortium

Alison Jeske, Director Product Marketing, drugstore.com

Jon Nordmark, Founder & CEO, Ebags.comXavier Casanova, Founder & CEO,

Liveclicker