In Part One of this three-part series, I explored the current YouTube practices of Internet Retailer's Top 500 companies.  In that analysis, I found that very few top retailers are leveraging YouTube as best as they can.  Most ecommerce organizations lack video content and they are not marketing those videos or driving viewers back to their product pages. Of course, it is not helpful to point out shortcomings without also exploring strategies for success. In this post, I will explain a retailer's three phases of development and where YouTube should fit into the mix.

First Generation - Denial

As I mentioned in Part One of this post, there are 76 Internet Retailer Top 500 companies who do not have a YouTube channel and another 84 which have posted less than 10 videos on the site. These retailers are focused on other marketing initiatives or simply have not yet embraced video for their organizations. Simply put, they are missing the boat by not at least leveraging YouTube. With 3 billion views per day and no hosting/marketing costs, YouTube is a no-brainer first step for every retailer.

Second Generation - YouTube-centric video program

In the second generation, a retailer has been able to source some content from its vendors and customers or it has taken the initiative to produce a few product videos. These companies might have just 10-20 videos and they simply want to be able to distribute them to YouTube while embedding a free video player on their website. This is the perfect occasion to sign up for a YouTube account, build some interactive annotations/links, and leverage free technology to lauch a product video program. There is no reason why every retailer, large and small, can't at least be in this second generation. By sourcing/creating a handful of videos and deploying them in their conversion funnel, retailers give themselves a chance to lift their site traffic, conversion rate and average order size while gathering valuable analytics. By giving Generation Two a chance, ecommerce organizations can build a healthy case for investing further in the video production and monetization that comes with Generation Three.

Third Generation - YouTube as a part of the marketing mix

Once a retailer builds the case proving that video is improving site traffic, conversions and/or revenue, it is time to invest more heavily in this medium. With that investment comes the sourcing and production of more video content and the distribution of video to more channels. A YouTube-centric second generation approach with 15 videos means that there are only 30 implementations (15 times on the ecommerce site and 15 times on YouTube) to manage. This can be done manually, even with limited resources. However, a comprehensive third generation approach might mean distributing those same 15 videos to affiliate networks (like Linkshare or Commission Junction), email campaigns, video libraries, additional video sites (like Vimeo or Viddler), ad channels, social media (like Facebook, Twitter or MySpace) and mobile phones (via QR codes or Microsoft Tags). Suddenly, 15 videos might have 150+ implementations, complex testing/optimization and a lot of associated analytics. It is time to invest in a video commerce platform. With a video commerce platform, the retailer is able to leverage technology to manage a more complex program, which can yield exponentially greater results. At Liveclicker, we serve tens of millions of video views each month, and we have built some compelling case studies for investing in a Generation Three program. Revenue on products with videos usually increases by 10-15%, site traffic rises 2-5%, conversion rates are boosted by at least 30% and average order size increases by 10-20%. Taking a methodical approach to video and working with a knowledgeable partner who can guide an ecommerce organization through this growth will pay off in dividends. Still, even with a more sophisticated third generation video program, YouTube is a critical marketing channel. Liveclicker makes sure to post its customers' videos on YouTube and to optimize titles/keywords/descriptions accordingly. Using YouTube's Promoted Videos solution and submitting sitemaps to Google are essential parts of the video marketing mix. Whether a retailer has 10 videos or boasts a library of 1,000, YouTube is an important component of a healthy video program. In Part Three, I will list the benefits which a retailer gains by graduating from a second generation YouTube-centric program to a comprehensive third generation program.