Phyron platform for automated production of top-quality customizable product videos with 80% higher conversion rate for a fraction of today`s cost

Project Information

Phyron

Grant agreement ID: 876869

DOI

10.3030/876869

Project closed

EC signature date 20 September 2019

Start date 1 October 2019

End date 31 March 2020

Funded under

• INDUSTRIAL LEADERSHIP - Innovation In SMEs

Total cost

€ 71 429,00

EU contribution

€ 50 000,00

Coordinated by

PHYRON AB
Sweden

Periodic Reporting for period 1 - Phyron (Phyron platform for automated production of top-quality customizable product videos with 80% higher conversion rate for a fraction of today`s cost)

Reporting period: 2019-10-01 to 2020-03-31

Summary of the context and overall objectives of the project

If a picture is worth a thousand words, a product video could very well be worth a thousand sales. Considering that video now appears in most of the top 100 search results listings and that viewers are much more likely to buy a product after watching a video – this is one marketing force one cannot afford to ignore.

Much of the global digital marketing spending can be attributed to the fact that videos are interactive for users. Since the customer engagement rate of these campaigns is relatively higher than other marketing strategies, they are rapidly being adopted by e-commerce businesses globally to increase their customer bases. It is estimated, that using videos on landing pages dramatically increases conversion rates by a whopping 80%. Thus, maximizing the benefits for customers and buyers.

Phyron is the first global player to have developed an e-commerce video marketing solution to automatically produce tailor-made interactive, dynamic content based on each product`s data. The company has strong proprietary technology. Phyron is based on a software as a service (SaaS) model and uses AI and machine learning technology to collect the available product data, produce a template and automatically deliver the unique video for each product.

To date, the technology has been validated at more than 10 sites which allowed us to demonstrate its robustness with positive results. We have a working platform and up to 20 paying customers already. What is missing is more extensive automation of the solution related to AI and ML technologies and demonstration of the commercial viability of the technology in full-scale e-commerce operations.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

The project has covered technical and market feasibility assessments as well as analysis and development of a long-term business plan. The study has highlighted a strong and unfulfilled demand for sophisticated, “studio-quality” video marketing at an acceptable cost. The feedback gathered has allowed Phyron to map the value proposition and estimate what still needs to be done to enhance the offering. We have conducted impressive small-scale tests with demanding customers from selected industries where the impact of video communication turned out to be high, with promising results and positive feedback.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

Up until today, there was no fully automated solution available for automatic video creation for online businesses in the market. Thus, preventing this business from an economically viable way to market and sell large product assortments with video. When Phyron successfully commercializes its automated solution, it will help transform online markets, bringing the following benefits for consumers and online businesses:

- End-users/consumers will have better information when buying products online. Videos help consumers make more informed decisions and help move the online shopping experience one step closer to the physical shopping experience.
- Online businesses will be able to compete with physical businesses (stores), which will reduce the costs of product sales and distribution and have an overall positive societal impact. Online businesses will be able to better communicate with end-users, increasing competitiveness.

Moreover, as online markets today have significant problems with product returns, Phyron’s solution is likely to reduce returns as end-users will be able to make a better judgment of the product based on watching a product video. Reduced product returns will mean less waste and less environmental impact.

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