Shoppable videos: The Next Revenue Stream For OTT Services?

While watching a TV show or online video has a product ever caught your eye? And then prompted you to go on a wild goose chase trying to find and purchase that product? If yes, you’re not alone. Now imagine the possibility of being able to click on that product, add it to the cart, and checkout- all within a video or after the video. It would make things so much simpler right? This is the value proposition that drives the concept of shoppable video.

So what are shoppable videos?

Shoppable video allows watchers to purchase objects featured in videos through clickable “hotspots” that direct users toward the item’s page or add objects directly to a virtual shopping cart. More advanced versions of shoppable videos allow you to promptly make a purchase from the video window itself. However, in a non-interactive video, the URL of the product link is displayed instead of a clickable action. Shoppable videos are a type of interactive video.

Benefits of Shoppable Videos

Shoppable videos and marketing products on an OTT platform have a lot of benefits associated with them. Some of them are:

1. Simplified Buying Funnel

The video content becomes instantly shoppable and this simplifies the buying funnel.

2. Increased Customer Engagement

Shoppable videos have increased customer engagement and are offering optimum ROI. They are one of the perfect ways to increase user engagement, conversion rate and to decrease shopping cart abandonment rates.

3. Invaluable Performance Insights

Most OTT platforms, offering shoppable videos also gather significant real-time performance data. This data allows businesses to find out the best performing elements of their campaigns. Ultimately, it helps to get more potential customers.

Currently, the revenue models followed in the OTT industry only offer a sustainable business model to a certain extent. Shoppable videos give a completely new revenue stream potential that also helps to differentiate OTT service offerings in the midst of tight competitions. By combining commerce and interactive elements, OTT and live streaming platforms can investigate the assessable impact of shoppable videos in their sales. Shoppable videos can allow OTT platforms to go beyond conventional advertising and also give advertisers additional ways to market their products and discover user buying preferences. The potential of shoppable video commerce can be limitless.