The Big Picture

People want what they want, when they want it.

Understanding this simple, but fundamental principle of human behavior should affect how we communicate and how we conduct business. As innovators, we have taken a fresh look at our industry. We have noticed that developments in technology create ongoing streams of remarkable new capabilities, but marketers often overlook the most obvious opportunities these developments have created. Marketers know that traditional approaches to marketing and advertising are now yielding less than inspiring results. Today’s consumers expect far greater influence over brands they buy, they demand more choices, and they believe personalization is king.

The Need

Many businesses have made significant investments in e-commerce, video and online advertising, but have yet to combine them into one integrated marketing solution. Pause Solutions has been developed as an enhancement product to add additional commerce capabilities to existing video and e-commerce assets. Pause Solutions technology gives websites hosting video the ability to sell commerce space – not just ad space. Adopting Pause Solutions maximizes the effectiveness of product placement marketing within online video by linking a direct sales opportunity to the featured products viewers see in each video.

The Online Video Advantage

Unlike ads in print media, video can continue to generate web traffic and revenue opportunities because the Pause Solutions application and its e-commerce capabilities can remain active as long as the video host desires.

Lessons from History

Linking commerce to video content is not a new concept. In the mid-1990’s, Time-Warner conducted an experimental consumer trial of interactive TV in Orlando, Florida, that allowed consumers to purchase items they saw on the screen. The idea behind video-based commerce has always been compelling, but execution and choice of media have been flawed.

Previous attempts to introduce commerce into television and movies focused on entertainment programming. In many homes and business settings, entertainment programming is often background noise, and fails to maintain the consumer’s attention. Specialized video programming selected by the consumer and focused on his or her personal interests can capture and hold the viewer’s attention, stimulating the viewer’s emotions much more effectively than entertainment programming.

Attempts to alter the basic function of television and to change TV consumers’ mind-set and viewing behavior have proven to be almost impossible. Consumer television viewing behavior and expectations have been established over 50+ years building inertia, resistance to change, and contributing to the failure of previous attempts at video commerce.

A New Day Has Arrived

Online video has changed this scenario. Viewership of short format online video has grown very rapidly – by one estimate, YouTube alone consumed as much bandwidth in 2007 as the entire Internet did in 2000.

As online video explodes, marketers are desperately trying to figure out how to integrate advertising and marketing with video content. Pre- and post-roll ads have become the most common method of video-based advertising, but most marketers are actively looking for more effective advertising approaches.

So far, video advertising is a very small part of online advertising. Online video ad spending will reach $1.1 billion this year (up 63 percent), and more than double to $2.4 billion over the next two years. Still, that’s a relatively small portion of overall online ad spending. Online video advertising clearly appears to be at an inflection point.

Pause Solutions

Pause Solutions allows websites hosting video to increase the profit potential of their media assets by introducing e-commerce opportunities that consumers can easily access within the video programming. Adding Pause Solutions functionality will change consumers’ experience and expectations of online video, and will dominate mindshare of how people think about the “pause” button on internet video players.

How the Pause Solutions Player Works

When the video is paused, a selection of up to ten thumbnail images or icons appear on the screen, superimposed over the paused video. Each icon represents a product featured in the video or closely related to the content. The viewer can click on one of the icons and a new panel within the video player, slides up that contains additional information and specifications on the featured product. This new panel also contains a direct link to an online e-commerce store (of your choosing) where the featured product is already queued up and ready to purchase.

Emotional Impact

Consumer’s purchasing decisions include both emotional and intellectual components. Currently, search-based online commerce focuses primarily on the intellectual component. Once consumers decide to shop for a product or service, they go online to search for product information and specifications, prices, product comparisons and evaluations, and recommendations by experts and other consumers.

Pause Solutions makes it possible for manufacturers and retailers to stimulate new demand and generate additional online sales by capitalizing on the emotional impact of online video. Because consumers are highly engaged when they choose to view videos that are both interesting and entertaining to them, the emotional drivers of a purchasing decision are very strong. And since consumers decide when to interrupt the video; they are choosing to seek additional product information and won’t find it disruptive or intrusive. Being in control, the viewer sees the opportunity to obtain more information about products featured in the video as an enhancement to their viewing experience.

Make it Easy

Pause Solutions requires a minimum number of clicks between the video content and the e-commerce shopping cart and check out (often one or two clicks). By reducing the number of steps and the time lag between the consumer’s emotional engagement and the purchasing opportunity - response rates and purchases will increase. Since consumers initiate the switch from “engaged viewer” to “active searcher” for additional information, they are more likely to respond and commit to the purchasing opportunity.

Marketing Metrics

Pause Solutions also allows the hosting site to directly observe consumer behavior and measure the effectiveness of marketing programs. The video host will know how many times a consumer clicked on Pause Solutions to interrupt each video, which product icon they selected of the group that were displayed, how the consumer searched for additional information, and if they purchased the product or returned to the video without purchasing. By capturing consumer purchasing behavior through their click patterns, Pause Solutions provides extensive information and reporting to calculate marketing performance, fine tune the Pause Solutions video and product selections, and improve the ROI of online marketing spending.

Understanding this simple, but fundamental principle of human behavior should affect how we communicate and how we conduct business. As innovators, we have taken a fresh look at our industry. We have noticed that developments in technology create ongoing streams of remarkable new capabilities, but marketers often overlook the most obvious opportunities these developments have created. Marketers know that traditional approaches to marketing and advertising are now yielding less than inspiring results. Today’s consumers expect far greater influence over brands they buy, they demand more choices, and they believe personalization is king.

 

Many businesses have made significant investments in e-commerce, video and online advertising, but have yet to combine them into one integrated marketing solution. Pause Solutions has been developed as an enhancement product to add additional commerce capabilities to existing video and e-commerce assets. Pause Solutions technology gives websites hosting video the ability to sell commerce space – not just ad space. Adopting Pause Solutions maximizes the effectiveness of product placement marketing within online video by linking a direct sales opportunity to the featured products viewers see in each video.

 

Unlike ads in print media, video can continue to generate web traffic and revenue opportunities because the Pause Solutions application and its e-commerce capabilities can remain active as long as the video host desires.

 

Linking commerce to video content is not a new concept. In the mid-1990’s, Time-Warner conducted an experimental consumer trial of interactive TV in Orlando, Florida, that allowed consumers to purchase items they saw on the screen. The idea behind video-based commerce has always been compelling, but execution and choice of media have been flawed.

Previous attempts to introduce commerce into television and movies focused on entertainment programming. In many homes and business settings, entertainment programming is often background noise, and fails to maintain the consumer’s attention. Specialized video programming selected by the consumer and focused on his or her personal interests can capture and hold the viewer’s attention, stimulating the viewer’s emotions much more effectively than entertainment programming.

Attempts to alter the basic function of television and to change TV consumers’ mind-set and viewing behavior have proven to be almost impossible. Consumer television viewing behavior and expectations have been established over 50+ years building inertia, resistance to change, and contributing to the failure of previous attempts at video commerce.

 

Online video has changed this scenario. Viewership of short format online video has grown very rapidly – by one estimate, YouTube alone consumed as much bandwidth in 2007 as the entire Internet did in 2000.

As online video explodes, marketers are desperately trying to figure out how to integrate advertising and marketing with video content. Pre- and post-roll ads have become the most common method of video-based advertising, but most marketers are actively looking for more effective advertising approaches.

So far, video advertising is a very small part of online advertising. Online video ad spending will reach $1.1 billion this year (up 63 percent), and more than double to $2.4 billion over the next two years. Still, that’s a relatively small portion of overall online ad spending. Online video advertising clearly appears to be at an inflection point.

 

Pause Solutions allows websites hosting video to increase the profit potential of their media assets by introducing e-commerce opportunities that consumers can easily access within the video programming. Adding Pause Solutions functionality will change consumers’ experience and expectations of online video, and will dominate mindshare of how people think about the “pause” button on internet video players.

 

When the video is paused, a selection of up to ten thumbnail images or icons appear on the screen, superimposed over the paused video. Each icon represents a product featured in the video or closely related to the content. The viewer can click on one of the icons and a new panel within the video player, slides up that contains additional information and specifications on the featured product. This new panel also contains a direct link to an online e-commerce store (of your choosing) where the featured product is already queued up and ready to purchase.

 

Consumer’s purchasing decisions include both emotional and intellectual components. Currently, search-based online commerce focuses primarily on the intellectual component. Once consumers decide to shop for a product or service, they go online to search for product information and specifications, prices, product comparisons and evaluations, and recommendations by experts and other consumers.

Pause Solutions makes it possible for manufacturers and retailers to stimulate new demand and generate additional online sales by capitalizing on the emotional impact of online video. Because consumers are highly engaged when they choose to view videos that are both interesting and entertaining to them, the emotional drivers of a purchasing decision are very strong. And since consumers decide when to interrupt the video; they are choosing to seek additional product information and won’t find it disruptive or intrusive. Being in control, the viewer sees the opportunity to obtain more information about products featured in the video as an enhancement to their viewing experience.

 

Pause Solutions requires a minimum number of clicks between the video content and the e-commerce shopping cart and check out (often one or two clicks). By reducing the number of steps and the time lag between the consumer’s emotional engagement and the purchasing opportunity - response rates and purchases will increase. Since consumers initiate the switch from “engaged viewer” to “active searcher” for additional information, they are more likely to respond and commit to the purchasing opportunity.

 

Pause Solutions also allows the hosting site to directly observe consumer behavior and measure the effectiveness of marketing programs. The video host will know how many times a consumer clicked on Pause Solutions to interrupt each video, which product icon they selected of the group that were displayed, how the consumer searched for additional information, and if they purchased the product or returned to the video without purchasing. By capturing consumer purchasing behavior through their click patterns, Pause Solutions provides extensive information and reporting to calculate marketing performance, fine tune the Pause Solutions video and product selections, and improve the ROI of online marketing spending.