- ROI in Every View
- The Evolution of Online Video is in Direct Response Leads to a new round of $11.5m funding
May 2, 2013 - San Francisco — Joyus, the web's first premium video shopping platform, unveils a new study which will change the landscape of how fashion, beauty and lifestyle brands conceptualize and monetize through video. "In an era when companies use video to tell stories, we use it to sell stories," states Sukhinder Singh Cassidy, CEO and Founder.
Joyus starts where traditional e-commerce stops. With a platform built for Direct Response Videos, Joyus' compelling video content creates direct sales of goods and service, which have proven to convert at 5.15 times the rate of visitors who only browse product listings on the site. Joyus video viewers are buying 4.9 times more than those who don't watch the product videos. Every time someone watches a video, Joyus can measure the resulting sales revenue, creating the first ever metrics for return on investment (ROI) using online video to drive product sales.
Revenue Per View is the key metric in measuring the ROI of each direct response video by calculating gross sales revenue on every video view. On Joyus.com, across 6 categories of products - fashion, beauty, home, food, health and fitness, and tech - the average revenue per video (RPV) view ranges from $0.47 - $0.93. By way of example, every thousand views of video on Joyus produces between $470 and $930 in direct sales revenue of the associated products in the video.
Up until now, online video has largely been measured only by engagement statistics and monetized indirectly using brand advertising. Joyus' business model provides the first platform for brands to directly sell products through video profitably and easily online.
"Joyus has shown that online video, when done right, can be a massive entertainment and commercial opportunity. Users and brands love engaging through Joyus videos. As broadband and mobile proliferate, Joyus will make shopping even more spontaneous and fun," states Keval Desai of Interwest Partners which has led the company's newest financing round of $11.5m along with Time Warner Investments. Existing investors, Accel Partners and Harrison Metal also participated in the round.
One of Joyus' partners, People StyleWatch, already knows the potential as a major revenue stream. "For us, Joyus is the natural evolution of e-commerce. The video platform brings products to life, and we've seen our users respond positively to the experience, ultimately helping to drive to purchase," said Joseph LaFalce, Director, Business Development, Time Inc.'s Style & Entertainment Group. "Partnering with Joyus has been a great way to extend our brand and editorial voice with our audience in an exciting and engaging way."
With hundreds of videos across millions of views, Joyus has unlocked the best practices for gaining measurable revenue results from every video. More than 500 brands already on Joyus enjoy direct ROI on their products featured in videos on the site. The top performing sub categories on Joyus include: Hair, Pants & Leggings, Beauty Tools & Accessories, Bracelets and Personal Organization. Ido Leffler, co-founder of Yes To, one of the world's top natural beauty brands, recently joined Joyus' Board of Directors, and remarks, "Joyus is one of the best launch platforms, especially for indie brands, as it conveys the spirit of a product like no other channel out there."About Joyus
Joyus is the web's first video shopping experience for consumers, allowing users to watch, shop and share products they love across Fashion, Beauty, Health & Fitness and Lifestyle. Founded in 2011, the company brings together an experienced management team including executives from Google, Ebay, Efficient Frontier, ABC, HBO, Sephora, and Fred Segal. The company was recently named amongst the "World's Best Retail Web Sites" by Internet Retailer (Dec 2012), selected as Brand Innovators' "Top 25 E-Commerce Companies to Watch" (2013) and AO Networks "Top Private Companies to Watch" (2013).About Funding
Joyus has raised over $19m in financing, including $11.5m in new financing in Q4 2012 led by Interwest Partners and Time Warner Investments and additional participation from existing investors. Joyus raised $7.9m in its first round of financing from Accel Partners and Harrison Metal as well as notable media and commerce angel investors in Silicon Valley.
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