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The Power of Video Ads in Retail

With more video content being digested on a daily basis (a reported 55% of consumers tune into video content daily), there is no doubt that the internet has become a video medium for users, and ultimately an invaluable asset to any business’ marketing and outreach strategy.

For retailers in particular, adopting video ads can unlock new potentials for advertising, especially as social sites such as Instagram adapt to cater for the visual needs of consumers, in light of recent findings claiming that a third of Instagram users have purchased a product they had originally seen on their social feed.

This article will explore some of the most recent statistics surrounding video-based advertisements, and apply them retrospectively to the retail industry.

90% of users say that seeing a video about a product is helpful in the decision making process

Nearly all of consumers state that videos are part of their decision making process, leading up to the potential purchase of a product. This statistic highlights the influence video advertisements have on consumers, with well-thought out and tactically delivered video content giving the potential for brands to leave lasting impressions on viewers, and consequently be able to influence purchasing habits.

Using a carousel video to exhibit products to shoppers helps build trust, with 35% of consumers trusting video ads. Retailer ASOS, who is often renowned as an early adopter of the latest retail tech trends, implemented “cat walk” videos of products, allowing users to see a realistic and thus more trustworthy representation of the garment.

92% of mobile video consumers share videos with others

In the eyes of consumers, video content is more shareable in comparison to traditional text-based advertisements. Curating original and engaging videos can give retailers the potential to increase reach, impressions and engagements through shares online.  Numerous major retailers, notably the likes of John Lewis and Foot Locker, have even achieved a ‘viral’ status by distributing tongue-in-cheek and timely video content.  

Video content allows for a particular ‘creative license’ and can incorporate a number of elements that static advertising content can’t, such as the use of music. Executing elements such as plot-lines and humour is typically more provoking in video content too, consequently deeming it more shareable from the user perspective.  

The average click-through rate of video ads is 1.84%, the highest of all digital ad formats

Video advertisements boast the highest click-through rate (CTR), with more consumers following through with the call-to-action; which may be a link to the actual product or the brand’s website. With this in mind, converting watchers through the sales funnel is a speedier process, with the opportunity for retailers to entice potential consumers with appealing video ads and then lead them directly to the check-out option.

51.9% of all marketing professionals worldwide name video as the type of content with the best ROI

Over half of marketing professionals label video content as the best drive of a reputable return on investment (ROI). This indicates that in most circumstances, video advertising can be an investment strategy, and potentially become a revenue indicator.  

Ted Baker, a leading clothing retailer, has urged marketers to put more faith in shoppable videos. The brand has recently launched a short-film campaign that features own-brand clothing that can be purchased through a number of notable outlets. Promoting the shoppable video, which makes it easy to demonstrate a wide range of products using an interesting storyline, has resulted in an increase of 32% in online sales.


Incorporating video advertisements into a marketing strategy can allow retailers to reap unparalleled benefits, communicating with shoppers on a more engaging and proactive level, whilst pushing product sales. As video advertising becomes a staple part of advertising, populating both online and offline channels, retailers should strive to produce unique, tailored content to increase the potential of high engagement levels.

Has your business explored the benefits of video advertisements, or do you make up the 12% of businesses who simply don’t feel video is needed? Let us know your thoughts in the comments section below, and don’t forget to subscribe.

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