Latest Statistics and Trends for Video Commerce

Video commerce is taking the digital world by storm, and if you're not paying attention, you might just miss the next big wave in online shopping. 

Picture this: A potential customer is browsing their favorite social media app when they encounter a live stream featuring your latest product line. With just a few taps, they can add items to their cart and complete the purchase, all without leaving the video experience.

Welcome to the world of video commerce in 2024!

But what exactly is video commerce? 

Simply put, it's the fusion of video content and eCommerce, allowing viewers to discover and purchase products directly through video experiences. 

From shoppable product videos to livestream shopping events and influencer collaborations, video commerce is reshaping how consumers interact with brands and make purchasing decisions online.

In this blog post, we're diving deep into the latest statistics and trends driving video commerce in 2024, with a special focus on what's happening in Europe and the UK. 

We'll explore how everyday shoppers are embracing this new way of buying, and what it means for businesses trying to catch their eye (and their wallets).

Key Video Commerce Statistics for 2024

Let's explore the data that's shaping the video commerce landscape and consider what it means for your marketing strategies:

Global Video Commerce Market 

The growth of video commerce has been nothing short of remarkable. As of 2024, the average internet user watches an astonishing 84 minutes of online video content every day, a significant increase from just 15 minutes a decade ago.
This shift in consumption habits has had a profound impact on the eCommerce landscape, presenting massive opportunities for marketers to engage with potential customers through video.

• Video's share of internet traffic: Videos now account for nearly 83% of global internet traffic, highlighting the dominance of video content in the digital space. For eCommerce businesses, this means that incorporating video into your strategy isn't just an option – it's becoming a necessity.
  
• Growth in digital video viewers in the UK: The UK has seen substantial growth in digital video viewership. In 2022, 74.9% of the UK population – that's 50.6 million people – were regular digital video viewers. This represents a significant audience for video commerce initiatives, especially considering the high penetration rate among younger demographics, with 97.2% of 18- to 24-year-olds watching digital video content monthly.

What This Means for Your eCommerce Business

• Prioritize Video Content: Create short, engaging product videos to capture a share of users' daily 84 minutes of video consumption.
  
• Optimize for Mobile: Ensure your video content is mobile-friendly, as many users will be watching on smartphones.
  
• Target Young Audiences: Focus on platforms popular with 18-24 year-olds, like TikTok or Instagram, given their high engagement rates.
  
• Invest in Shoppable Video: Implement technologies that make your videos directly shoppable to capitalize on video's dominance in internet traffic.
  
• Diversify Your Approach: Experiment with various video formats to find what resonates best with your audience and drives conversions.
  

Preferred Platforms for Video Commerce

The landscape of video commerce is diverse, with several platforms emerging as key players. Each platform offers unique features and opportunities for businesses to engage with consumers through video. 

Let's look at how the major platforms are shaping video commerce:

• YouTube's Dominance: YouTube continues to be a powerhouse in video content. In the European Union, YouTube watch time on TV has grown over 45% year-over-year. It's not just for entertainment; 84% of marketers say YouTube is their preferred platform for sharing videos. The platform is becoming a significant player in eCommerce with features like shoppable ads and product shelf integration.
  
• TikTok's Rapid Rise: TikTok has made a substantial impact on eCommerce, particularly with younger audiences. In 2023, TikTok generated $4 billion in advertising revenue which is expected to double in 2024. 70% of users say it seems easy to purchase through TikTok shopping-related ads. Importantly, TikTok users are 1.5x more likely than users on other platforms to discover new brands and products, making it a powerful tool for product discovery.
  
• Instagram and Facebook's Shoppable Features: On Instagram, 50% of users have visited a website to buy a product after seeing it in Stories ads. Additionally, 44% of Instagram users shop on the app weekly, highlighting its role in regular shopping behavior.
  Facebook's emphasis on video content has made it a key player in social commerce, with its integrated shopping features driving significant engagement.

What This Means for Your eCommerce Business

• Diversify Your Platform Presence: Don't put all your eggs in one basket. Each platform offers unique advantages, so consider how you can leverage YouTube's wide reach, TikTok's engagement with younger audiences, and Instagram's seamless shopping experience.
  
• Leverage Platform-Specific Features: Utilize YouTube's product shelf for detailed product showcases, create catchy TikTok challenges to boost visibility, and use Instagram's shoppable posts for a frictionless buying experience.

• Adapt Content for Each Platform: Remember what works on YouTube might not work on TikTok. Tailor your video content to suit each platform's unique style and audience expectations.

• Invest in Social Commerce: With the lines blurring between social media and eCommerce, ensure your business is set up to sell directly through these platforms where possible.

• Monitor Performance Across Platforms: Regularly analyze which platforms are driving the most engagement and sales for your business, and adjust your strategy accordingly.
  

Impact of Short-Form vs. Long-Form Video Content

The debate between short-form and long-form video content is crucial in the video commerce landscape. Both formats have their strengths, and understanding their impact can significantly influence your video marketing strategy.

• Short-Form Video’s Dominance: Short-form videos, typically under 60 seconds, have seen explosive growth. According to HubSpot's 2024 Marketing Trends Report, short-form video is the top leveraged media format in marketers' content strategies.
  
• Effectiveness in Driving Purchases: Short-form videos offer the highest ROI for marketers. Ads with user-generated content (often in short-form) have a 400% higher click-through rate than traditional ads. 

• Platform Preferences: Different platforms have different optimal video lengths:
  
  • Instagram: 30 seconds
  • X (previously Twitter): 45 seconds
  • Facebook: 1 minute
  • YouTube: 2 minutes
  • TikTok: 21 to 34 seconds for top-performing videos
    
• Long-Form Video Still Relevant: Despite the rise of short-form content, long-form videos maintain their importance. Wistia's 2023 benchmark report found that 16% of viewers stuck with a 60-minute video all the way through, suggesting that engaged audiences are willing to watch longer content.
  
• Product Demonstrations: For product-specific content, 69% of consumers believe a product demo best assists them when making a purchase decision. These videos can be either short or long, depending on the complexity of the product.

What This Means for Your eCommerce Business

• Prioritize Short-Form for Discovery: Use short-form videos (30-60 seconds) for product teasers, brand awareness, and capturing initial interest, especially on platforms like TikTok and Instagram.
  
• Use Long-Form for In-Depth Content: Leverage longer videos for detailed product demonstrations, customer testimonials, and educational content, particularly on YouTube or your website.
  
• Tailor Length to Platform: Adapt your video length to each platform's preferences to maximize engagement and reach.
  
• Experiment with Lengths: Test different video lengths to find what resonates best with your audience and drives the most conversions.
  
• Focus on Quality Over Length: Regardless of duration, ensure your videos provide value to the viewer, whether it's entertainment, information, or a compelling call-to-action.
  

Influencer Marketing and Affiliate Programs

The rise of influencer marketing and the creator economy has significantly impacted video commerce, offering brands new ways to reach and engage potential customers through trusted voices.

• Market Size: The influencer marketing industry reached a global value of USD 13.8 billion in 2023, highlighting its significant role in modern marketing strategies.
  
• Platform Preferences: TikTok has emerged as a powerhouse for influencer marketing in video commerce. 50% of TikTok users have bought something after watching a TikTok Live, demonstrating the platform's effectiveness in driving direct sales through influencer content.
  
• Micro-Influencers vs. Celebrities: Micro-influencers (those with 10,000 to 100,000 followers) often drive higher engagement rates than celebrity influencers. They boast an average engagement rate of 3.86% on Instagram, compared to 1.21% for mega-influencers and celebrities.
  
• Affiliate Marketing in Video Commerce: The global affiliate marketing industry is expected to reach $36.9 billion by 2030, with video content playing a crucial role. Affiliate links in video descriptions or overlays have become a popular way for creators to monetize their content while driving sales for brands.

What This Means for Your eCommerce Business

• Leverage Influencer Partnerships: Collaborate with influencers whose audience aligns with your target market. Their authenticity and connection with their followers can significantly boost your brand's credibility and sales.
  
• Focus on Video-Centric Platforms: Prioritize platforms like TikTok, Instagram Reels, and YouTube for influencer collaborations, as these are where video commerce thrives.
  
• Consider Micro-Influencers: Don't overlook micro-influencers. Their higher engagement rates can lead to more meaningful interactions and conversions for your brand.
  
• Integrate Affiliate Programs: Implement affiliate programs for influencers to incentivize them to promote your products effectively. This can lead to a win-win situation, driving sales for you and providing income for creators.
  
• Emphasize Authentic Content: Encourage influencers to create genuine, relatable content featuring your products. Authenticity is key in influencer marketing and can significantly impact purchasing decisions.

Mobile vs. Desktop vs. Connected TV in Video Commerce

The device landscape for video commerce is evolving rapidly, with mobile, desktop, and Connected TV (CTV) each playing crucial roles in shaping consumer behavior and purchasing decisions.

• Mobile Dominance: Mobile devices continue to lead in video consumption and commerce. As of 2024, 75% of all video plays are on mobile devices, highlighting its importance in the video commerce ecosystem. Moreover, by 2028, it's projected that $193.4 billion of all ad spending in video marketing will be through mobile, underscoring its growing significance.
  
• Rise of Connected TV (CTV): CTV is emerging as a major player in video commerce. This trend is reflected in marketing strategies, with 67% of European respondents identifying CTV as the key growth area for digital video advertising.
  
• Device Preferences by Age: Device preference varies significantly by age group. Users aged 18-34 are more likely to watch video content on smartphones than any other devices. In contrast, connected TVs are particularly popular for the online video audience aged 35 and older.

What This Means for Your eCommerce Business

• Prioritize Mobile-First Strategies: Given the dominance of mobile in video plays and future ad spending, ensure your video commerce efforts are optimized for mobile viewing and purchasing.
  
• Don't Neglect Desktop: While focusing on mobile, remember that desktop still plays a crucial role, especially for older demographics and certain product categories. Ensure your video commerce experience is seamless across all devices.
  
• Invest in CTV Opportunities: As CTV continues to grow, explore opportunities to leverage this platform for your video commerce strategies. This could include creating longer, more detailed product showcases or brand stories suitable for TV viewing.
  
• Tailor Content to Device: Recognize that viewing habits differ across devices. Create short, impactful videos for mobile, more detailed content for desktop, and immersive experiences for CTV.
  
• Consider Age Demographics: When targeting different age groups, remember their device preferences. Younger audiences might be more effectively reached through mobile-centric platforms, while older demographics might engage more with CTV content.

Trends in Video Commerce: What the Data Tells Us

Understanding the trends in video commerce is crucial for businesses looking to stay ahead in the competitive eCommerce space. Let's dive into the emerging trends that are defining the future of video commerce:

Shoppable Video

Shoppable video is emerging as a game-changer in the eCommerce world, allowing viewers to purchase products directly from within video content. This seamless integration of content and commerce is revolutionizing how consumers discover and buy products.

• Effectiveness: Shoppable videos have proven to be highly effective in driving conversions. Interactive videos, including shoppable content, can increase conversion rates by up to 70% compared to non-interactive videos.
  
• Consumer Preference: 44% of consumers say they prefer to learn about products through video content, making shoppable videos an ideal format for product discovery and purchase.
  
• Integration with eCommerce Platforms: Major eCommerce platforms are increasingly integrating shoppable video features. After the release of Amazon Inspire, more and more eCommerce businesses have started using shoppable videos on their pages. 

Actionable Tips for eCommerce Businesses

Test with Best-Sellers: Create shoppable videos for your top products first.

Mobile-First Design: Ensure videos are mobile-friendly with clear CTAs.

Leverage UGC: Encourage customer-created shoppable video reviews.

Social Commerce

Social commerce, particularly when combined with video content, is rapidly reshaping the eCommerce landscape. This trend merges social media engagement with direct purchasing capabilities, creating a powerful tool for businesses to reach and convert customers.

• Market Size and Growth Projections:
  
  • The global social commerce market reached $945.92 billion in 2023.
    
  • It's projected to grow at a compound annual growth rate (CAGR) of around 30%, potentially reaching $13 trillion by 2033.
    
  • Europe’s social commerce industry is expected to grow and reach $4.2 billion by 2028.
    
• Popular Platforms for Social Commerce in Europe:
  
  • Facebook remains the primary social commerce platform across most European countries, especially for older generations.
    
  • Instagram is the leading platform for Gen Z in countries like Germany and Belgium.
    
  • TikTok is rapidly gaining ground, particularly among younger demographics.
    
  • YouTube is also a significant player, with 20% of European users reporting accessing it multiple times per day for video content.

Actionable Tips for eCommerce Businesses

Multi-Platform Approach: Establish presence on Facebook, Instagram, and TikTok.

Platform-Specific Content: Tailor videos to each platform's unique style.

Showcase Social Proof: Incorporate user-generated content in your strategy.

Live Shopping and Livestream Commerce

Live shopping and livestream commerce are emerging as powerful tools in the video commerce landscape, offering real-time interaction and immediate purchasing opportunities.

• Growth of Livestream Shopping:
  
  • Livestream purchasing increased by an average of 76% worldwide from pre-pandemic times to 2021.
    
  • Europe saw the highest growth during this period, with livestream shoppers growing by 86%, outpacing other regions globally.
    
• Conversion Rates and Average Order Value:
  
  • Live shopping boasts conversion rates of 9-30%, far exceeding the 2-3% conversion rates typical of standard eCommerce platforms.
    
  • Certain sectors, such as fashion and beauty, report conversion rates as high as 70% during live shopping events.
    
  • Live shopping events increase the average order value by 12-15%, as consumers are more likely to purchase multiple items during a session.
    
• Demographics Driving Live Shopping:
  
  • Gen Z consumers are leading the way in social commerce.
    
  • The Influencer Marketing Factory conducted a study comparing livestream shopping purchases amongst each age group, and Gen Z led with 47% of consumers having made a livestream purchase in both the US and UK.

Actionable Tips for eCommerce Businesses

1. Host Regular Events: Schedule consistent live shopping sessions to build an audience.
   
2. Target Gen Z: Focus on platforms and content that appeal to younger consumers.
   
3. Optimize for Conversion: Design live events to maximize engagement and purchases.

The Role of AI in Video Commerce

Artificial Intelligence (AI) is increasingly playing a crucial role in shaping video commerce strategies, offering new ways to create, personalize, and optimize video content for eCommerce.

• AI Adoption in Creating Shoppable Video Content:
  
  • 75% of businesses have already used AI to create videos.
    
  • 59% of businesses plan to use AI to auto-generate captions or transcripts for their videos.
    
  • 50% will use AI to generate scripts and outlines for video content.
    
  • 35% plan to use AI for generating visuals or fixing overdubs in their videos.
    
• Personalization and Targeting in Video Commerce:
  
  • 49% of marketers say that AI makes their content more personalized.
    
  • 50% of marketers report that AI improves the quality of their content.
    
  • 44% of marketers use visual generative AI tools, such as those to create videos and images.
    
• Challenges and Opportunities:
  
  • 46% of marketers believe that AI will complement the video creation expertise of professionals.
    
  • Only 12% say that AI will not change much in video creation.
    
  • A significant challenge is content accuracy, as 47% of marketers report receiving incorrect information through AI.

Actionable Tips for eCommerce Businesses

1. Leverage AI for Efficiency: Use AI tools for video scripting and captioning.
   
2. Enhance Personalization: Implement AI for targeted video recommendations.
   
3. Balance AI and Human Touch: Combine AI efficiency with human creativity.

Conclusion

From the rise of short-form content to the growth of livestream shopping, the trends we've explored highlight the increasing importance of video in the customer journey.

For marketers and eCommerce businesses, understanding these trends is crucial. The statistics show that video content, particularly on mobile devices and social platforms, is becoming an essential tool for reaching and converting customers. 

By leveraging these insights and adapting strategies to include more video content, shoppable features, and interactive experiences, businesses can stay competitive in the evolving digital marketplace.

As video commerce continues to grow, especially in the UK and Europe, those who embrace these changes and innovate accordingly will be best positioned to capitalize on this exciting shift in consumer behavior.