VIDEO COMMERCE: Online videos could get a lot more lucrative. At least that’s the goal of The Mad Video Inc., a new platform enabling users to identify brands’ merchandise within online videos. On Mad Video’s Web site, users enter the URL of a YouTube video and tag the people, places or products in the video. The general public can access Mad Video, but its chief executive officer Koldo Garcia and chief operating officer Riley Maguire envision brands and bloggers trying to generate revenues from affiliate marketing as the primary audience for the platform. Mad Video will also launch a professional version offering brands customizable tags and advanced metrics.
“If they want to include prices or even include a checkout in the video itself, that could all be done,” said Maguire. “We are going to be charging for volume as well. A free version would include a certain number of videos per month.”
This story first appeared in the May 16, 2013 issue of WWD. Subscribe Today.
In a test with Spanish retailer El Corte Inglés spanning four seasons and 45 videos, videos that were tagged via Mad Video were viewed three to four times more than those that were not, and the click-through rate to product pages doubled with the tagged videos, according to Maguire. “Based on that, we validated our platform with retailers,” he said. Maguire and Garcia emphasized that another benefit of Mad Video is the capacity to share tags on various social media networks, such as Facebook and Pinterest, and index tags on search engines. “Search engines are going to be able to store this information, so if you are looking for a Zara jacket on Google, one of the potential results you can get is that jacket in a video in the precise minute, second or frame it appears,” explained Garcia.