I just returned home last night from the Shop.org Annual Summit where I spoke about how e-commerce retailers could make more money with video “in a week.”  One of the more powerful moments of the presentation was the opening. I asked the 500 or so in attendance the following three questions:

First, “Who believes online video is an effective way to sell products online or persuade shoppers to buy?”

Nearly everyone raised their hand.

Then, “Who is using online video in some fashion today to sell?”

About 3/4 of the audience kept their hands up.

Last, “Who is using online video as extensively as you would like?”

Fewer than 10 hands remained up.  I think I counted 4 or 5.

For some time, I’ve been thinking about what’s been preventing video from taking off more broadly in the e-commerce space.  It’s a topic I come back to often here, but unfortunately it’s an issue that hasn’t yet disappeared.  The experience I had at Shop.org clearly showed that e-commerce has a long way to go until video commerce reaches its potential.

Without a doubt, 2009 has already seen many new innovations within the video commerce space.  From the increased adoption of automated video solutions like TalkMarket and SundaySky, to newfound demand from retailers sourcing video content from manufacturers, experimentation with different styles of video production, and efforts to integrate video more deeply with social media, retailers are working hard on their video commerce programs. Still, the fact remains: the vast majority of retailers (even those with significant investments in video) do not view video as core to the business.  Retailers still struggle with high production costs, internal political struggles over video’s ultimate role (entertainment? sales tool? education? customer service?), lack of vision, accountability, underinvestment, and, in my opinion, hugely underwhelming leadership.

On the one hand, it’s hard to blame folks for being slow with video.  Even though it’s becoming increasingly difficult to refute that video boosts conversion rates and clickthrough rates, video still fails the “CEO Radar Test” in far too many e-commerce organizations.  Consider for a moment that your company suddenly decided to stop sending out email campaigns, or buying keywords, or that all of a sudden the decision was made to take your shopping cart offline for a week. In the e-commerce world, decisions like these would almost certainly percolate up to the CEO - or at least the VP of E-Commerce.  Why?  Simple.  Dollars and cents.  If video were to disappear from your organization tomorrow, would the CEO notice?  Be honest!

Of course, as a reader of this blog you are likely one of the industry’s forward thinkers.  You are out to innovate, to differentiate, and to accelerate your company’s performance.  Just as email didn’t appear overnight, nor did search, neither will video.  It’s going to be a bumpy road or a wild ride (you pick).  But the companies that do innovate will be in a much stronger position when it comes to building customer loyalty, increasing the quality of the shopping experience, and showcasing the kind of thought leadership that will be required to keep today’s increasingly fickle shopper happy while ushering in the new wave of millennials - not to mention a broader population that’s becoming more and more accustomed to consuming video as part of the everyday online experience.

The fundamentals of video are strong.  Directionally, online retailers are overwhelmingly headed down the path of more video (as opposed to less video).  Now is the time to step up the leadership and make it happen.  I can’t wait to report on some of the video experiences launched during this Q4.  Until next time -

Happy Selling!