In its second-largest acquisition, Amazon buys the company for $970 million.
A study also finds that most tablet owners watch videos on the devices.
52% of consumers who watch product videos say those videos make them more confident about purchases, according to Invodo. In a new study, the e-commerce video provider suggests that the main reason consumers stop watching a particular video is if it offers little information that helps with decision making; on the other hand, 66% of consumers who watch information-heavy videos about a product watch them two or more times before buying, Invodo says.
Invodo based the findings on a November 2011 survey of 1,039 shoppers who watched at least one product video on retail or brand manufacturer web sites in previous three months.
The survey found that, while most respondents prefer videos that have been professionally produced, 30% of respondents say they are likely to buy products featured on videos made by users of those items. Still, 47% of respondents say that professionally produced videos seem more reliable.
Among all respondents, 36% had watched five or more product videos in the last three months. Of the 62% who owned smartphones, 49% had used them to watch product videos. Of the 35% who owned tablets, 61% used them to watch videos. Tablets, with growing popularity and more video-friendly designs, including crisper pictures, may offer greater potential for retail videos than do smartphones, the study says.
“Up until now, retailers have had to make decisions about video without getting information from the most important stakeholder—their customers,” says Invodo CEO Craig Wax. “In looking at real feedback from our study, it is crystal clear that consumers expect video as part of their shopping experience, and rely on it when making purchase decisions.”