- Goldmedia forecasts: Within the next five years the integration of video could lead to a cumulative revenue growth of Euro 4.1 billion in the German eCommerce market
- Video enhanced eCommerce offers a better presentation of goods and improves the online shopping experience
- With video clips eCommerce platforms can take advantage of the TV shopping effect: Seeing goods in action is much more convincing than plain pictures
The extensive use of video will help eCommerce platforms to unleash untapped potential, winning more customers and convincing people to buy more goods online.
In the report eCommerceTV, the Berlin-based media consultancy Goldmedia has analysed the possibilities of using video and has quantified for the first time the potential revenue growth for the German eCommerce market. Goldmedia forecasts that the use of video in Germany will boost revenue in the total eCommerce market in 2012 by 5%. The overall revenue growth triggered by eCommerceTV could add up to Euro 4.1 billion within the next five years.
Chart 1 : Absolute growth of the eCommerce Turnover by using video, Germany 2007-2012
Germany is one of the European front-runners in eCommerce activities and thus a good example of growth potential in this market. 41% of Germans between 16 and 74 years old purchased online in 2007. This places Germany fourth in Europe behind the UK, Denmark and the Netherlands. The EU average is 23%.*
The attractiveness of WebTV and online video has grown enormously
71% of all German, 75% of US and an astonishing 83% of British internet users watch video-streams online.** Video features like web TV, trailers, rich media advertising, etc. have become a natural part of the internet and have developed into a more and more important eye-catcher. The infrastructural prerequisites and internet coverage are by now taken for granted and will only continue to improve.
The large catalogue companies and online shops have already reacted and are currently launching their own video formats. Examples are amongst others Amazon, Tchibo WebTV (Germany), Marks & Spencer (UK) or teleshopping channels such as QVC.
eCommerceTV can improve the “shopping experience”
In 2007, nearly 60% of all 14
