Sept. 15, 2024

Revolutionizing E-Commerce with Eitan Koter The Power of Shoppable Video

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In this episode of Living the Dream with Curveball, we dive into the transformative world of video commerce and digital marketing with Eitan Koter, a thought leader with over 20 years of experience. Eitan, the co-founder and co-CEO of Vimmi, shares his journey in the tech industry, his insights on the convergence of media and commerce, and the innovative solutions Vimmi provides to brands and retailers.

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> Curtis Jackson>Welcome, to the living the Dream podcast with Curveball. if you believe you can achieve Chee Chee, welcome to the living the Dream with Curveball podcast, a show where I interview guests that teach, motivate and inspire.

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> Curtis Jackson>Today we're going to be talking about video commerce and digital marketing as I am joined by a thought leader in these areas with 20 years of experience, Aiden coder.

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> Curtis Jackson>Aiden is the founder and a co founder and CEO, co CEO of Vimye. That is a video solution, a shoppable solution for brands and retailers. So we're going to be talking to him about what he provides and everything that he's up to. So Aiden, thank you so much for joining me.

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> Eitan Koter>Hey, thank you so much for hosting me, Curtis. Pleasure to be here.

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> Curtis Jackson>Why don't you start off by telling everybody a little bit about yourself?

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> Eitan Koter>Yeah, great. So I'm in the tech business. for the last 20 plus years, I've been in, media, entertainment, Internet and telecom industries throughout the year. During the last ten years, I'm running a company. In the video space, we provide technology, platforms for mobile, operators and content providers initially, and we help them launch kind of like Netflix, like white label solutions. So helping big companies out there on the media and entertainment sector to launch direct, to consumer video services, whether it's a subscription services and live, channels.

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> Eitan Koter>And during the last four years, we saw the migration or the, I would say the convergence of media and commerce. It started from China where China live shopping has boomed, to in China, there are people there who just stay, just host in front of a camera like a full live shopping event. Some of them are already billionaires. the live shopping event migrated to western world, Europe and the US, of course. and we know that TikTok is very powerful these days in the US and social commerce is emerging as a very, very important, aspect of online business where shoppers can transact and check out, while doing this endless scrolling on TikTok and YouTube and Instagram and some other social networks as well. So we've developed technology that is working, and working, with other ecommerce platform out there where we can help brands leverage the power of video, to sell across multiple channels, not just on their own ecommerce platform.

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> Curtis Jackson>So you also have lots of experience in startup and public companies. Tell us about that experience. And also the one that you work with is on the Nasdaq.

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> Eitan Koter>Yeah, exactly. So my previous company, we had quite a success in terms of raising funds from venture capital companies. And growing the company and also floating the company to an IPO in Nasdaq. Of course, I was one of the, I wasn't alone, was a big company, but amazing, great people, and it was a really, exciting experience, how to float a private company to be a public company. Eventually, after we did this in 2005, by the way, and in 2009, we also sold this company to another private company. So they took our, actually bought our shares from the market and, turns us into a private company with the different shareholders. So like two, I would say, exit scenarios for the same company in a matter of four years. so I'm great experience in this aspect of the business, running big companies, having a lot of challenges of growth or how to recruit the right people, how to sustain growth, how to maintain customer support, satisfaction and operational excellence. And with Vimi. Vimi is also, I think, a unique story. During the last ten years, we operate as a bootstrap company. I have a co founder and a partner, and we've decided to launch this company without external funding, using our own intelligent resources and funds. And this is completely different type of experience where we need to take a smarter, decision about doing things in a way that contributes to the top line and obviously to the bottom line, while sustaining our cash flow. We know that we don't have external resources or external funding to take big risks. And it's a really, different type of experience where we measure everything and we try to make sure that we operate in a very, very agile way in order to quickly adapt.

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> Eitan Koter>And when we, for example, initiate or launch a new product or a new feature set on existing products, we immediately check customer feedback and we take a quick call whether to kill this, functionality or to continue and expanding with its capabilities. so we believe a lot in agile mindset, but also the ability to create products in a very agile way in terms of the implementation and how to create software products these days, but primarily working in a very narrow innovation kind of, strategy, meaning land and expand. So launch products, to the market that are resolving a very specific sets of problem. It has a very narrow view in terms of its ability to create some difference in the market.

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> Eitan Koter>Once there is a positive feedback on that specific functionality to a very specific target market, we then create more and more functionalities on top of that initial configuration and our initial version. This is a way of launching new products these days instead of, waiting long, long time and to develop something which is very broad and had a lot of functionalities just doing it the completely the other way. Try to find a minimum set of functionalities, launch to the market, get feedback and expand from that point.

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> Eitan Koter>That's really, a bootstrap mentality that is working for us very well. And they've been doing this successfully for the last ten years. Company is growing substantially profitable and operate in a very exciting market, but has a really lean methodology and agile mindset and processes and of course, technology.

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> Curtis Jackson>Well, for those who don't know, talk about how shoppable video can drive customer engagement and help boost your sales.

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> Eitan Koter>Yes, exactly, exactly. So we all see and enjoy those videos across TikTok or Instagram or YouTube.

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> Eitan Koter>But brands and companies are creating a lot of video. Video marketing in general is booming.

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> Eitan Koter>Of course, video has been used in so many other industries, right, like medical and education and support, but specifically for business. video has been used for marketing and the share of video within the marketing budget is increasing quite substantially over the years. And a specific version of that video is built for, as designed or manufactured or produced for conversion. So if you look at the marketing funnel, probably we can define it or divide it into like three different steps. The awareness stage where companies want to create more awareness for themselves. So for a new product or a new collection they are launching.

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> Eitan Koter>During that phase, it's important to create content which is more educational, and provide more of the market type of information. During, during consideration where shoppers are considering our solution, we are able to provide more of a, case studies and how to type of information. But when they are in decision, it's important to give them quick execute or quick checkout option.

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> Eitan Koter>And when we say shoppable video, it means that on the video player, when you watch that video, it doesn't matter where you have the ability with the click of a button to redirect or to create those, checkout experiences. So think about a scenario where you watch a video on a customer website, or it can be on a TikTok or on Instagram or YouTube, you watch that video. And we know that e commerce is, works a lot on, on this impulse purchase. So shoppable video is just the next wave or the next generation of impulse purchase, meaning that you can check out within the video itself. So you watch the video, someone is showcasing or describing the product, you can click to buy and you have a full, checkout experience. Of course, any one of these platforms are providing a different type of experience for the checkout, like for TikTok. And if you have a TikTok shop, you can check out within the video itself. And once you click that buy button on the video you read, it will redirect you to a product page within the TikTok shop for checkout. And on YouTube, on Instagram or Instagram or Facebook.

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> Eitan Koter>That link will redirect you for probably an external product page that can come from your own ecommerce platform or shopify platform or any other platform for checkout.

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> Eitan Koter>So this is like a very powerful, immediate way for shoppers to check out, to check out while they watch video. And shoppable video comes in various forms. It comes in this short form very fast, usually vertical videos that are usually like 30 seconds, not long, not longer than that for checkout.

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> Eitan Koter>Usually watched on TikTok, Instagram reels and YouTube shorts. The other format are like long form videos, wherever these are more horizontal video that probably goes to YouTube and also to the come to the company website. And the third form of video is live video. So in the Vimi platform, we support all these formats or video, flavors. Live is very, very powerful because it's the most emotionally triggered type of experience because you can see what's happening. You can hear, and you know it's happening right now and in real time. And during those live shopping events, again, obviously providing the ability to check out. To check out. But because there is a host and a moderator, usually, shoppers can ask questions in a chat system. It is available within that video player. It's very easy to ask questions. The moderator will respond. The host will respond to these questions. There is ability to convert users and create conversion during these live shopping events. And we know that if those live shopping events are promoted in the right way, in the right process, prior to the event, and during the event, and also post the event, we are able to achieve sometime ten or 20 times higher conversion rates than a regular ecommerce conversion rate. We know that the regular ecommerce conversion rates, conversion rates are like below 3%, maybe on Amazon, they are a little bit higher on seven, 8%. But when we do live shopping events with the right marketing something, we can get to even 30% and 40% conversion rates of actual people purchasing products during these live shows.

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> Curtis Jackson>So what are some of the best practice tips if someone wanted to run a live shoppable event?

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> Eitan Koter>Exactly. Great question. once you plan to do this live shopping event, what we see that the most, you need to think about who is going to host the event. So that event can be 20 minutes, 30 minutes can be a longer event, but the event should be interesting. People needs to be attracted to the event, not get bored. So you need to make sure that the event is run and operated by a professional. From our experience and what we see, the best people to stand in front of a camera and go live are the brand owners themselves or the retailers who are actually working in the company, like the employees themselves. This is very powerful because they are very attentive, they are expert in the product and they know to answer questions in real time. It's important also to market like pre event. It's important to market the event in your newsletter, in your social media, making sure that people are building like a fear of missing out. Like a fomo type of experience.

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> Eitan Koter>And you need to provide some kind of an incentive for people to join, whether it's a discount or some kind of benefits on the loyalty program or some kind of attractive introduction of a new product that people are waiting for a long time that, you know, so try to deliver and provide something in this event which is very, very unique and very, very powerful. And again, market this event across social use. Affiliates use advertising to make sure that people rejoin this event because anyone who will join such an event has a high intent of actually making a purchase. So it's very specialized group of people who got together very, very interested in their products in order to make something, out of it with actually making a purchase during the event. During the event.

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> Eitan Koter>It's also very important to continue the marketing of the event. So we usually tell our customers to ask the viewers of the event to share the link to the event, to redistribute the link to the event with their own network. For example, if I'm watching the event on Facebook, I can take this event and share this event with my network. On the Vimi platform we are able to provide also the affiliate main event. So if for example, I'm watching a live show right now on TikTok and I'm sharing this with my followers and one of my followers actually made a purchase, we are able to provide a commission or an affiliate commission for that viewer or a discount, for purchasing future product. So it's a very powerful tool during the event to just expand the reach with people who are actually sharing this video from within their network. continue during the event to create a lot of buzz on social, sending emails and provide some incentive for people to watch now post the event. And sometimes we see that 50% of the sales happened post the event itself because many people want to join but they cannot. Okay, so we highly recommend for all those events to be recorded, okay. And stored in a professional archive. Again, this is something that the vimi functionality is able to provide.

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> Eitan Koter>Record those live events and make sure that the inventory is still available for people to check out, post the event. Because we know once people are joining to the event, we can redirect them to the video on demand, recorded video of that event. And they can still make a purchase, they can still ask questions and we make sure that the seller has someone on the back end to respond to questions and to help them transact. We also provide a lot of analytics data for our customers on the event. Insights like how many people, watched the event, how many people click to purchase but they didn't purchase? Right. How many people start watching on that second and finish on the other, time from which device they consume, whether they were these people were on any of the social networks or on the customer website.

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> Eitan Koter>So this analytics is very powerful. in order for the seller to create more personalized campaign through AI recommendation and suggest variety of scripts and product enhancement, and follow on discount to just encourage those user or hesitated to purchase, they can receive now an sms or an email saying hey, we know you've been into this event, we saw that you clicked to purchase and I, you watch the product on your product page, but you didn't purchase. Here is another incentive for this purchase. So making sure you're actively using data and insights to reach out with our messaging platform to customers so they can think about their rethinking about their ability to purchase and encourage them to purchase. And if it's been done in a correct manner, we can achieve really high percentage of the sale happening post the event itself.

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> Eitan Koter>And so we recommend to do this loop of pre event marketing, during event marketing and post event reach out, and messaging through a very structured way. And everything of course can be done from within the Vimi platform.

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> Curtis Jackson>So talk about how you launched e commerce in North America and how you built TikTok's advertising business.

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> Eitan Koter>Yeah. So what we see that is working very well today, is TikTok right? Because launching a new platform or a new product or a new business on Amazon has become very, very costly. there are so many competitive competition, there are so many players out there. It's very, very difficult to scale. I mean, if you launch on Amazon, I mean, if you like, five years ago, ten years ago, it was still open, there were still a lot of less competition and cost of advertising was dramatically lower. So we know that during the last few years, cost of advertising like those CPC's are increasing both in meta, like Facebook and Instagram, and also in, and also on Amazon. Now, TikTok is something new, right?

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> Eitan Koter>So TikTok, because there is a. A barrier where you need to create those nice videos, and we can talk about production of videos and how to do that. But the idea is that TikTok is still an open, less crowded marketplace, or a social platform that helps businesses launch, launch products and launch new businesses just on TikTok. Now, TikTok has an apply within TikTok. You have an influencer network that are like TikTokers, who are creating content or operating as an affiliate, and can work with brands on promoting solutions. So there is a built in functionality. TikTok started as an entertainment platform, then it becomes a search platform, and now it's a shopping platform.

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> Eitan Koter>So the performance for TikTok in terms of business volumes is really, really high.

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> Eitan Koter>so, like, TikTok are planning close to $20 billion in sales during this year. In 2024. Last year, they did 11 billion in total gross merchandise value on TikTok. This year, they're planning at least almost to double this performance. And I believe that from all the data that I saw, that they are definitely on track to do that. And we encourage the customers to create higher volume of videos, because those videos are short form videos, more authentic, less polished, high production value that you will launch, probably on YouTube or on tv. TikTok, Taurus, with this TikTok ification effect, to create higher volume of video, be consistent even on a daily basis. Put yourself in front of a camera as a business owner, owner, as a marketeer, using the right affiliates or influencers to create really valuable content around various topics.

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> Eitan Koter>Again, as I explained, during the different stages of the marketing funnel and just experiment, we see that businesses in the same niche, with the same product, targeting the same people, are using different video tactics. And the way that they are presenting things in front of camera is completely different.

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> Eitan Koter>So no one knows what's going to work. But if you do that in a very consistent and structured way for the, the two, three months, you will find your sweet spot and you will know from, analytics what's working on TikTok. And once we upload and everything is organically right, the TikTok algorithm favors success and not related to the amount of friends that you have. Right. So TikTok is not a social platform in a sense that you have connections. And as friends like Facebook or Instagram, people I'm, a company just uploading video. Whatever sticks can become viral and without any followers. Okay, so that's the beauty of the algorithm. And obviously it's the same now with Instagram reels and YouTube shorts. But the recommendation is to just go out there, be consistent, post daily, and within two, three months see what works from data, from analytics. And once you see those videos are performing very well and it can be maybe time of the day, or the length of the video, or the style of the video, or the style of the seller that people are more resonating with. Once you zero in on those videos that are working very, very well, we can then take them from uploading them on an organic way and we can now boost them with advertising. But we know that the return on ad spend is going to be very, very powerful, very strong, very high, because they were very, very successful on the organic side of things. And yes, TikTok has a complete advertising platform within TikTok that helps you to promote and sponsored, videos, also provides you much more functionalities in the way you're able to redirect users to quickly create a purchase in TikTok shop. But those advertising events, after being successful, organically, those videos are highly recommended to be further, pushed with advertising to make return on ad spend really, really high and powerful.

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> Curtis Jackson>So tell us about any upcoming projects that you and your company are working on that people need to know about.

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> Eitan Koter>Yeah, so we are just at the beginning of this major trend of the convergence of Mediaev and commerce, right? We started from media and entertainment and we see those big companies, mobile operators, major content providers, major media houses are becoming e commerce providers and they are into products and total, like even opening physical stores like Netflix, for example. On the other side of things, we have the retailers and the brand, like digital native brands or companies, that are manufacturing products, wholesaler the brand retailers, they are becoming media houses.

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> Eitan Koter>They are creating content. We can see just from the last year that Walmart, for example, acquiring Visio, JPMorgan launches chase Media solution, Instacart partners with YouTube and Shoppable video. Costco launches its own retail media network, Best Buy and CNET joint forces on retail media. So many examples of how media is converging with commerce. And this is the foundational, for everything.

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> Eitan Koter>So what we see is more of using video, more content creation around brand awareness, but primarily around conversions, giving more, moving more towards immersive commerce with more, solutions and capabilities around augmented reality and virtual reality that is being used in social commerce in a very, very interesting way.

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> Eitan Koter>the trend with retail media where the retailers and the brands are using the digital assets or advertising inventory assets. So we see that not only happening online and offline, but also in big screen like ctvs. So we saw, for example, on the entertainment side of things, that both Netflix and Amazon and Disney announced advertising packages under, as a package on their services. But we will see that more and more how advertising and really that form of shoppable advertising where you can immediately check out on CTV or on big screen, is taking more of a central stage. I think that the companies are still trying to find the use case.

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> Eitan Koter>I would say that the user experience that can support this scenario. But think, for example, that you're on TikTok, sorry, you're on Netflix.

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> Eitan Koter>And on the episode page, for example, you get an information about, what's happening, like a trailer of that episode. But you also get the option to purchase some items that are related to this episode. And this is before you start watching. So you can just go to that thumbnail, get some more information, and probably with a click, you will just receive an email, with a link to purchase that product. Or you can scan during the video. Suddenly there is a QR code that's popping up, recommending a special discount for this product. So you can scan that QR code with your mobile phone and you can redirect your product page, which will not interrupt you viewing the video, but it probably will send you a push notification just with a reminder to click the purchase after you completely watch that episode or that movie. So video is becoming more, common in day to day business activities. Also, the production of video and the use of AI for content creation is a major thing that we are working as well. Also in Vimy, how to help launch this live shopping event, how to create content in AI in a more streamlined way. Because the biggest objection that we hear from customers is not that they said, yes, we know that video is working.

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> Eitan Koter>The platform is amazing. That content creation piece is very, very complicated for us.

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> Eitan Koter>We don't have anyone who can do that for the medium of small businesses and we need help.

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> Eitan Koter>So if we are able to provide through AI, through, establish this connection with content creators and influencers, helping the brands create content in a very cost effective way, then we are becoming part of their sales team. We call our platform a sales acceleration platform. Not just because it has a technology to help you scale on social commerce and on your own website, but we can help you also with content creation with influencer outreach and with all these AI tools that are helping you with content creation, they will be more and more powerful in the following year, is to help businesses just scale with video, which make it more interesting.

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> Eitan Koter>Now, only just today, I mean, Cisco just announced latest report, like 82% of the worldwide Internet traffic is video. And this is still planned to grow because when all that video is growing and video is growing not just on TikTok, it's growing also on YouTube, it's growing also on big screens. And there is a huge opportunity to monetize this video a very, very intelligent way. And Vimi is in the forefront of this solution. So we have video and solution activities and shoppable video activities for brands and retailers, but we also operate in the media and entertainment side and we have customers that are like big content providers and big, mobile operators who are implementing online video platform and commerce within big screen and variety of other, I would say, devices like mobile phones and tablets and also web. And so we are serving all these industries and we have very aggressive roadmap how to continue, innovate and serve those industries.

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> Curtis Jackson>So everybody can keep up with everything that you're up to.

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> Curtis Jackson>Throw out your contact info.

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> Eitan Koter>Yes, I'm quite active on LinkedIn, so you can find me. It's eitan Cotter, it's e I t a nde, surname is k o t e r. I'm posting daily and provide a lot of information about video, video commerce and social commerce.

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> Eitan Koter>Anyone who is happy to start, a trial. So just go to vimi.net, comma, it's vimmi.net. you can find a lot of information about everything that we've just discussed. There is also a free package that you can start is a free for life when you can start with live shopping, shoppable videos, social commerce in a very limited amount, of videos that we support on that basic package and then you can grow and upgrade. And the first package starts from 199, 49,$149, which is quite reasonable for providing all these functionality. Our platform helps a lot without, you know, you don't need to hire a dedicated team for managing all these social, channels.

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> Eitan Koter>Everything is done on that side of things. So vimi.net is where you want to start. And my personal LinkedIn, if you want to reach out, close us out.

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> Curtis Jackson>With some final thoughts. Maybe if that was something I forgot to talk about that you would like to touch on or any final thoughts you have for the listeners.

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> Eitan Koter>Yes, final thought is around video creation, video marketing.

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> Eitan Koter>don't be afraid of video. What's nice today is that shoppers and viewers are looking for that authentic, differentiated type of content, not for high production value.

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> Eitan Koter>Polish those videos that work for weeks to create because you need to provide and to push high quantity of video. And we usually recommend like daily videos on TikTok, on Instagram and on YouTube. You need to go out there and test. Don't be afraid to put yourself in front of a camera. Ah, it doesn't matter. you know, what you have in the background. You just use good audio, good lightning and just tell the story. I mean, I always recommend like brand leaders to create a list of 50 customer pains that they have and anyone should be able to do that. If you don't know 50 customer pains within 30 minutes, they probably are in the wrong industry. So any business leader out there, start with a customer pains list and for every pain you have, create a video that discusses this pain and provide some kind of a solution that your platform is helping resolve this pain. And here is a quick way to create 50 videos targeting customer pains. Just put yourself in a camera and these are like 30 seconds to 60 seconds long videos. No one needs more than that. It doesn't have to be fully edited and polished. Authenticity wins. Okay, try to use a really interesting hook at the beginning because people are deciding to watch like in the first 3 seconds. So try to use a very, powerful hook and just search for hook recommendation on Google. You'll find so many ways to create those captivating hooks and create videos around customer pains. Create videos around industry trends. Create videos about your product.

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> Eitan Koter>Do a good mix of all these things and just put yourself out there. Don't hesitate, don't be afraid. You don't have to be beautiful and you don't need to hire expensive hosts and you don't need a really professional studio. All you need is your mobile phone. So go out there, encourage you to start posting great 30 50 videos. Learn from the data. You'll be surprised how you're going to be very successful. And I know that that strategy helps a lot of brands and this is their most powerful strategy, creating those videos and making marketing very, very effective and efficient for you.

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> Curtis Jackson>All right, ladies and gentlemen, go to vimi.net.

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> Curtis Jackson>check out keep up with everything that Ayton's up to. Follow Rate review share this episode to as many people as possible. Jump on your favorite podcast app. Give us a review.

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> Curtis Jackson>Follow us. Check out the shows, send them to other people if you have any guests or suggestion topics Curtis Jackson 1978 atT.net is the place to send them. Thank you for listening and supporting the show. And Aidan, thank you for all you do. And thank you for joining us.

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> Eitan Koter>Yes, it was really a, ah, pleasure. Curtis, thank you for everything that you do for the industry and we appreciate the time. All the best.

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> Curtis Jackson>For more information on the living the Dream podcast, visit www.djcurvefball.com.

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> Curtis Jackson>until next time, stay focused on living the dream.

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> Eitan Koter>Dream.