Over 80% of retailers will become media companies, claims research

More and more retailers and brands are following in the footsteps of Iceland and Red Bull to create video content to engage with customers.

According to new research from Brightcove, 81% of European retailers think they will become media companies in the future.

The research quizzed 200 retailers in the UK, France and Germany to learn 61% already offer content services which mimic TV programming online, while 33% plan to launch content in the next two years.

Almost 60% of retailers have owned an online video channel, while 48% use third-party online video channels, and a further 43% have partnered with broadcasters or created sponsored content. Meanwhile, 37% have created live programming content to engage with customers.

Retailers believe video content will increase revenues (66%), encourage customers to buy a wider range of products (50%) and increase web traffic (45%).

“In recent years, video has established itself as an absolute must-have component in any digital marketing strategy, but as driving meaningful consumer engagement becomes ever more difficult, brands are looking for new ways to unlock additional revenue streams. And this has turned their attention to the living room,” said Mark Blair, VP of EMEA at Brightcove.

“For retailers and brands to be truly successful in what is traditionally the broadcasters’ domain, they must first understand that it’s as much about the quality of the content they’re producing as it is how they are delivering it,” said Blair. For brands, it’s about treading the fine line between being salesy and informative, entertaining and relevant, and matching content output with consumer demand. If they are able to get this balance right, a wealth of revenue and engagement opportunities will be ready and waiting for them.”

While retailers and brands are betting on a future of video, only 40% of consumers have ever watched their content, with 25% saying the content they have watched is of poor quality.