Why V-Commerce?
V-Commerce is a combination of video and commerce. It refers to a way of using images to drive purchase and sales. V-Commerce is growing around Streaming Shoppers, which tend to purchase image- and video-oriented content rather than text. By 2019, 66% of mobile traffic (80% if PC included) will be occupied by video streaming.
V-Commerce is a combination of video and commerce. It refers to a way of using images to drive purchase and sales. V-Commerce is growing around Streaming Shoppers, which tend to purchase image- and video-oriented content rather than text. By 2019, 66% of mobile traffic (80% if PC included) will be occupied by video streaming.
Definition and Types of V-Commerce
V-Commerce is a combination of video and commerce. It refers to a way of using images to drive purchase and sales. Early V-Commerce focused on the "functionality" of the product and its details. But with the era of V-Commerce 2.0, where consumers search for the ads they want to see the focus switched from product detail to "interesting contents." Currently, V-Commerce is spread through SNS and mobile devices, and various video contents for different communication goals are produced and transmitted.
The video commerce from 2000 to 2010 is called V-Commerce1.0, and from 2010 until now is the era of V-Commerce2.0. There is a difference between key players and main devices. In V-Commerce1.0 e-commerce companies deliberately spread videos through the web and PC. The contents of the videos focused on detailed product introduction and how-to-use advice. With the start of V-Commerce2.0, not only e-commerce companies but also MCNs (multi-channel networks) and private creators entered the field. In this new era, even product introduction gained a touch of fun and wit. These contents are now delivered through various platforms such as SNS, personal broadcasting stations, video media, shopping malls, and MCN channels. The main types are influencer contents, branded contents, mobile home shopping and so on.
The need for V-Commerce
Video is one of the most effective mediums to deliver information easy and quick to consumers. The expansion of network technology and mobile devices also increased the video contents. V-Commerce is growing around Streaming Shoppers, which tend to purchase image- and video-oriented content rather than text. By 2019, 66% of mobile traffic (80% if PC included ) will be occupied by video streaming. Therefore, the video is becoming one of the most effective means to attract consumers and increase conversion.
There are three main advantages when using videos.
First: Great to attract consumers' attention.
While an image can deliver 1,000 words at a time, a video provides 1.8 million words per minute. Especially, beauty and cosmetic shoppers show significant interest in video contents. 64% of consumers watched and shared videos regarding beauty trends.
Second: Induces purchase and pumps sale.
Joyus, an overseas shopping mall, confirmed that the conversion rate of purchase after watching a related video increased more than five times. s
Third: Increase in traffic.
For shopping malls introducing products by video, the average time a consumer stays on the page increased by 80%. Exposure through video platforms affects search results and ranking and an increase of 157% in entries through video platforms is confirmed.
Examples of V-Commerce
SNS marketing using V-Commerce, BlankTV
In May of last year, the video of 'Black Monster', which is a side-down perm product, was a hit. It was a before-after video and a life saver for all the males who didn't know how to handle their new trendy hairstyle.
This video was produced by a new video commerce company called 'BlankTV.' Their idea was to take it a step further from just selling the product. So they introduced the different stages of the product like development, distribution, and marketing through videos.
The video of Black Monster surpassed 100 million views in six months from SNS and surpassed 1.5 billion KRW in sales within three months of its establishment, opening a new paradigm to the MCN industry as well as the beauty market. Black Monster was just a start for Blank TV. Their introduction of Wonder Patch and the Crocodile Footpatch from Dr+wonder was also a hit. The 'Puresome Shower' from 'BODYLUV,' which filters rust and residuals out of old pipes and 'ANormal' a fragrance brand not being shy to open up all the ingredients they use are following in line.
Tmon TV ON combines V-Commerce with e-commerce
Last year, Tmon introduced a live broadcasting program to the media commerce platform 'TV ON.' It features an interactive social service that connects viewers with influencers such as celebrities, famous chefs, and popular bloggers. Video content, which was the entirety of home shopping, is now combined with e-commerce. On TV ON Live an influencer delivers product information and the latest news on Tmon products. It is a strategy to increase the amount of mobile application residence time and product sales by providing fun to customers. Kim Hyun-soo, chief of the Tmon's Business Planning Department, emphasized that Media Commerce will provide an optimal shopping experience for every individual. Customers' shopping channel selection criteria are shifting from price and product assortment to recommendation services based on personal taste.
The world's largest private live market, Taobao
The number of viewers who watch broadcasts of China's largest online shopping company 'Taobao' differs from 200 to more than 100,000. Through access to the live channel of Taobao's homepage, you can follow real-time how the seller the scene where the seller tries out the products. Until now consumers could check the design and quality of the product only through images, but now they can check out a live demonstration through the broadcast. Consumers watching the live feed can also get in touch with the seller in real-time.
Especially in China, where the reliability of products is low, the demonstration of the seller trying out the goods creates credibility which leads to an increase in conversion. In recent years, personal live broadcasting is expanding in various fields in China.
Promotion Plan and Cases of V-Commerce
In case of V-Commerce promotion, consumer-friendly contents are produced through sharing the experience of general users or giving professional advice through experts. These live contents are provided multi-channel (website, SNS, Youtube) to strengthen the contact and interaction between both sides.
Linked events through various channels, Korean Air
Korean Air 's' My ticket to Spain' ad showed various attractions in Spain. It was not just aired on TV, subway and bus ads, but the consumer could win a real ticket to Spain by downloading a mobile app and participating in a simple game. Also, information on major destinations was in various forms such as VR and images to encourage participation.
Every hour different creative events, Kakao games
Kakao game used 'Play with me,' an official community to make a hashtag event with different topics every hour. Different event themes for breakfast, lunch, dinner or special days were created, and various SNS channels helped consumers to participate easily.
Interactive events with stars, Lotte Cinema
'Chewing Chat,' a collaboration event of Lotte Cinema and KakaoTalk, enabled a chat between leading actors/actresses and their audience at the film preview. A premiere was a one-way communication until now, but 'Chewing Chat' made interactive communication possible. It was a great hit by combining Kakao Talk, the most frequently used chat app with movie stars.
A campaign bringing people who share taste together, Knorr
The German food brand 'Knorr' arranged a campaign matching dates for singles with similar taste in food. Through a simple test on the landing page, the consumer gets a recommendation on Knorr products and a match to a person with similar tase. To make it clear to their customers, Knorr released a campaign video. Knorr also created several social videos, and the number of views on the main video surpassed 600,000 views.
Future of V-Commerce
Although V-Commerce is causing a boom in the global broadcasting market, the market is still unstable, and dependence on a specific group, the millennials is very high. Some platforms prefer to stay closed leading to failure. The V-Commerce industry needs to foster creativity and contents with credibility, an open platform, and professional content to stand on top of the existing media terrain.
*Sources
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H News Culture, “우수한 품질력과 톡톡 튀는 영상으로 소비자들 마음 사로잡는다” 블랭크티비
http://nownews.seoul.co.kr/news/newsView.php?id=20180125601002&wlog_tag3=naver
Now News, 中개인 생방송 물건 판매 인기…직접 시연하고 질의응답도
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