In the face of declining organic reach across all social media platforms, brands have begun to divert their investments to video. Image and text are still the predominant types of content posted on platforms, but that could change as video grows in popularity and value. Facebook video posts grew by the double digits year-over-year while the number of video posts on Instagram tripled. Video posts drive more organic views than other posts: The 87% of fashion brands that posted video in Q4 2015 garnered transaction rates of 1.6x or higher for video than the average post in the same period. Similarly, 73% of brands posted video on Instagram and those posts garnered 1.2x the interaction rate of the average brand post.
However, brands are still putting money behind these posts, especially those with high visibility. Eighty-six percent of Index brands utilize YouTube’s “TrueView” advertising, and in Q4 2015, the top ten videos by fashion brands (excluding fragrance content) derived 95% of their views from paid media.
Surprisingly, while the majority of brands are willing to invest in their videos to be viewed, few are willing to take the next step to encourage conversion. Ninety-five percent of brands create videos that live on their site, but just 16% produce shoppable video or shoppable content related to the video. Belstaff’s Adventures blog and Kate Spade’s #MissAdventure series represent best uses of video to push shoppers further down the purchase funnel, in addition to generating brand awareness.
There’s no telling whether the scarcity of these types of video stems from lack of knowledge, or aversion to using branded content to directly funnel sales. It could be the former, as three-quarters of luxury brands consider awareness more critical than conversion. Yet it’s important to note that 76% of luxury purchases happen during a shopper’s initial consideration set, which means brands must capitalize on every digital touchpoint available.