The Future of Video Commerce is Here

In the fall of 2022, we talked about how video content was shaping the future of ecommerce, and, we’re happy to say: the future is here. 

Whether you’ve wanted to shop a character’s signature outfit or order the nachos they ate for lunch, we’ve all seen something on a show or digital video and dreamed of clicking a button and having it shipped right to our homes. Now, we’re one step closer to that becoming a reality. 

Here, we’ll explore the current state of video commerce, how it’s redefining the retail experience, and how it may continue to evolve. 

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What is Video Commerce?

Video commerce is a segment of ecommerce that allows you to promote and sell products through video marketing content. It can take place across phones, Connected TVs, social media platforms, brand websites, and more. 

Video commerce and social commerce are (and will continue to be) intertwined with other forms of ecommerce. 

How Important is Video Commerce? 

Video content can serve as an incredibly influential part of the buying experience. 

According to a Think With Google report, “63% of YouTube viewers say that they bought from a brand as a result of seeing it on YouTube.” Additionally, TikTok reported 33% of users bought something because they saw it on the platform (cue #tiktokmademebuyit). 

The Types of Video Commerce 

There are several different types of video commerce, so let’s dive into a few of them: 

Livestream Video Commerce 

Another Statista study found most consumers in several countries—including China and India—have already utilized livestream commerce. 

In addition to creating experiences on other platforms, several businesses create live video commerce on their websites. 

Walmart, for example, creates several different experiences for their customers across platforms, including websites and CTV. With Walmart Shop Live, consumers can watch videos and shop for everything from the latest best-selling books to beauty products that amplify self-care routines. 

The Fresh Market has also created a live video series surrounding meals for the spring holidays. This series feels like a shoppable version of your favorite Food Network show. Once the live videos have aired, they are cataloged (for a period of time) on a video-focused section of the website. 

Poshmark also creates an in-app livestream shopping experience, which the platform or individual users can host. Through what they call “Posh Shows,” users can interact with one another in a live video format while promoting and selling the products from their shops. 

CTV and OTT Video Commerce

At the moment, Roku seems to be leading the CTV and OTT video commerce game. 

In mid-2022, they partnered with Walmart to create shoppable ads, which allowed people to purchase items directly from their TVs. If viewers’ payment information was already saved, they could simply click the checkout button to finalize their purchase. 

The latest partnership in this space is between Roku and DoorDash, which inspires viewers to order food without leaving the comfort of their couches. Wendy’s was the first company to place ads through the Roku and DoorDash partnership. 

And, they’re doing a great job of giving viewers what they want. According to Business Wire, “…internal Roku research [found] 1 in 3 Roku users order take-out or food delivery weekly. Furthermore, 36% of Roku users are interested in receiving interactive offers including a scannable QR code or text message.” 

We already shop through our CTVs for movies and shows—so why not order your dinner there as well? 

Social Media Video Commerce

Like I said above, video production and social commerce will be (closely) intertwined. In addition to the static Instagram and Pinterest posts with shoppable links, you might have noticed some shoppable video content throughout your favorite platforms. 

On TikTok, for example, in-feed shoppable ads start like any other video on the platform. Then, at the bottom, you’ll notice a pop-up with the product, the price, and a link to finalize your purchase with the business. They also have a live shoppable video ad option for brands looking to showcase their products in real-time. 

Video is Redefining the Retail Experience Across Platforms 

From the devices in our hands to the flat screens in our living rooms, video is helping to create more simplified digital retail experiences. 

Even when we’re watching those big screens in our living room, it’s likely our phone or tablet isn’t too far behind. This second screen phenomenon is common across households. According to a MNTN Research report, 83% of US TV viewers watch with another screen, such as a phone, tablet, or laptop. 

What are people doing with their second device? According to Statista, viewers are: 

• Checking and responding to emails 
• Using social media
• Looking up information about what they’re watching 
• Online shopping 
• Ordering food 

Since viewers are already using additional devices to supplement their TV experience, this creates a unique opportunity for brands to meet them where they already are. 

How Shoppable Videos Will Evolve 

This is likely just the beginning of shoppable videos. As social media, CTV, and other video platforms evolve, shoppable videos will likely become more popular and, potentially, a go-to commerce format. 

While you can’t order everything from your Connected TV just yet—it’s safe to say it’s a possibility for the not-so-distant future.