Retail industry dynamics have produced an almost unprecedented level of inconsistency in the use, type, and accessibility of video on ecommerce sites. Apparently, the normal market forces of trial and error have not helped to guide an emerging consensus. Something is missing, and perhaps the answers lie in how “video” is perceived by the retail industry, and where within each organization the decision making concerning video seems to lie.

In the course of their survey, Future Merchants spoke directly with most of the Top 100 ecommerce retailers about the adoption and use of video. Without exception, those enquiries were routed to executives within the ecommerce organization. From that point onward, ownership of the topic of “video” began to vary significantly.

The results show that multi-channel retail organizations have difficulty identifying where the ownership of “video” should lie, with the exception of clearly believing it is an “ecommerce” issue. This fact provides extraordinary insight into the resources, types of content and tactics taken in implementing video. Tellingly, the cost-benefit calculation becomes limited to measurable impact on ecommerce volume, which represents a very small fraction of the total volume for almost all multi-channel retailers. This means that any expense, of any kind, will be analyzed solely on the lift generated in online volume. Ecommerce organizations are not typically evaluated or rewarded on the basis of in-store impact. Correspondingly, allocation of resources of all kinds will go to those initiatives that drive online volume first and foremost, despite conversion rates online in the single digits, and a growing awareness of the degree to which brick & mortar shoppers are exposed to and influenced by the website.

Second, there does not appear to be a department, organization or individual within these companies responsible for the creation of the video content. Lack of ownership within the ecommerce organization immediately begins to define how, where and to what extent the medium will be utilized. Most of the job titles found in the Future Merchants survey were either User Experience in nature, or ECom Technical. Even when a Marketing title was found, that individual operated within the constraints of ecommerce marketing, where Job 1 (and Job 2, 3, 4 and 100!) is the efficient use of limited marketing dollars to drive site traffic. So without dedicated internal organizational ownership, where is this video content going to come from?

This is an extraordinarily important point. Without direct ownership of content development, there is no budget established to fund the effort of creating content. The results are seen in the lack of sustainability alluded to earlier. When video programming is found on multi-channel sites, it is, with few exceptions, either repurposed content developed through corporate marketing (such as television commercials) to run on an entirely different platform (TV) or it is the result of one-off corporate marketing expenditures supporting specific events (exclusive brand launches, seasonal microsites, social media marketing, etc)….where the internal ROI has been measured by the impact on all channel volume! And moreover, the nature of where that programming comes from tends to mitigate toward branding connections, not toward driving sales behind specific products.

More insight into the issues and answers to retail websites and video programming will be delivered at the upcoming eTail West convention. Don Delzell, Managing Director of Future Merchants will be a Panelist on the Day Two Session: Driving Returns from Online Video With An Understanding of the Nuts and Bolts Behind Execution. Don will be offering a unique perspective on the issues behind the current industry experience with video.

Future Merchants has created RetailTV®, a revolutionary innovation combining over 50 years experience in retail merchandising, the art and science of master storytelling, and best in class technology to bring retail clients a powerful new method for driving cross-channel volume for key items.

Combining Solutions™ programming with the RetailTV® platform enables retailers to easily integrate powerful video storytelling anywhere on their website, while creating an interactive and seamlessly shoppable experience for their customers, driving sales on featured items across all channels.

The Future Merchants mission is to provide multi-channel retailers an affordable, high impact alternative to the declining effectiveness of traditional key item marketing techniques; an alternative that simultaneously engages the consumer, enhances the brand, and drives volume.