Transcript Justin Foster, Founder, Video Commerce Consortium Alison Jeske, Director Product Management, drugstore.com Jon Nordmark, Founder & CEO, Ebags.com Xavier Casanova, Founder & CEO,

Justin Foster, Founder, Video Commerce Consortium
Alison Jeske, Director Product Management, drugstore.com
Jon Nordmark, Founder & CEO, Ebags.com
Xavier Casanova, Founder & CEO, Liveclicker
Video Commerce
ShopNBC.tv launches
Social Marketing
Friendster founded
Search Engine Marketing - CPC
Overture first $100M revenue
Email Marketing - CPM
Digital Impact first email
Affiliate marketing - CPA
Commission Junction formed
Banner advertising - CPM
DoubleClick - first banner
first visitor
$1M web sales
bankrupt
first profit
1996
2000
open to all
Will It Blend video
viewed 100M times
IPO
eCom sales 1%
of total retail
1994
founded
2002
2004
eCom sales
4.2% of retail
2006
2008
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“Will It Blend” over ~100MM views and counting

Self-Produced Videos: build credibility, add value,
humanize the experience
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Acquire content from customers
Build a trust relationship
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Q: What is preventing
you from starting out
with video commerce
or expanding your
current video
commerce initiatives?
Don't know where to start
Lack of knowledge
Unproven ROI
Lack of resources
Lack of industry case studies
No executive buy-in
None of the above
Lack of interest
Poor ROI
High production costs
Goes against the culture or
brand
0%
Source: Video Commerce Consortium Survey. July 7, 2008
5%
10%
15%
20%
25%
Alison Jeske
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With a decade of experience in
eCommerce, Alison Jeske has
worked in customer acquisition,
retention and customer service
aspects for online retailers.
Alison is currently Director of
Product Management for
drugstore.com, inc., where she
is responsible for defining site
strategy, and implementing new
site features to deliver an
exceptional personalized
shopping experience.
Prior to joining drugstore.com
Jeske was a senior member of
the eCommerce team at
Cingular and AT&T Wireless.
drugstore.com, inc.
(NASDAQ:DSCM) is a
leading online retailer of health,
beauty, vision and pharmacy
products. Our portfolio of brands
include: drugstore.com™,
Beauty.com™ and
VisionDirect.com™. All are
accessible from
http://www.drugstore.com and
provide a convenient, private,
and informative shopping
experience while offering a wide
assortment of more than 30,000
products at competitive prices.

Past : Launch of new Beauty.com site in
November 2007 – included video
▪ Video library (self-produced and vendor videos)
▪ Brand boutique videos (e.g. Jonathan)
▪ Objectives:
 Increase basket size
 Increase time on site
 Provide enhanced shopping experience for prestige beauty
customers
▪ What did we achieve?
 Basket size and time on site difficult to directly correlate to video
viewing (new features also launched w/ new site)
 Positive feedback from customers
9
Pop up window displays
video
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Present: New tools and expansion of video
into drugstore.com
▪ Partnered with Liveclicker to provide rich tools for
driving that intersection of video and commerce
▪ Launched Beauty.com w/ Liveclicker in July
▪ Launched drugstore.com in September
▪ Monitoring SEO benefits
▪ Building out a video library
▪ Securing content from vendors
▪ Adding video into our product setup procedures
▪ Measure, measure, measure – analyze!
Liveclicker tool provides
many features:
 ’Buy’ just one click
away
 Product links in video
 Sharing
 Rating of videos
 Comments
 Access to related
videos/whole library
 SEO benefits
 Push to YouTube,
Twitter, Google Video
Over 30 videos on
Beauty.com
Still early to
determine the
basket (order
value) impacts
Other exciting
metrics – newest
video with a 94%
continue to watch
past 10 sec mark;
42.5% watch whole
video

Future:
 Broaden access to video throughout the site
(product details pages; tutorials on new site
features)
 Develop in-house videos (videos for our “brand”)
 Facility for customers to upload video
 Continue to monitor and analyze results (orders!)
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Jon Nordmark, Founder & CEO Ebags.com
>$100MM 2007 revenues
Growing 25%+ annually
Launched video in early 2008
 Initial pilot on video site
 Later rollout to brand and product pages on Ebags.com
Put existing assets to use
The most engaging
medium for selling
 Provide a richer
customer experience
 Drive new traffic through
video SEO
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Leverage supplier content
Access professional quality assets; low cost
Group A – No Video
Group B – With Video
# Product pages
served
25,000
25,000
Conversion rate
(clicked play
button)
6.63%
10.00%
Conversion rate
(watched entire
video)
6.63%
15.84%
Conversion rate
increase
(clicked play
button)
Conversion rate
increase
(watched entire
video)
N/A
N/A
50.1%
138.9%
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Launched in 2008
Prominent SEO placement
“ Conversion
rates increased.
Plus, we quickly
validated the
SEO pilot.”
- Jon Nordmark,
Founder & CEO,
eBags.com

Future:
 Continue producing video assets
 More experimentation testing “demonstration”
vs. “promotional”
 Lean on suppliers and customers for new video
content
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Largest and fastest-growing consortium of interactive marketers seeking to learn
about and advance the use of video in e-commerce
www.video-commerce.org
Justin Foster, Founder, Video Commerce Consortium
Alison Jeske, Director Product Marketing, drugstore.com
Jon Nordmark, Founder & CEO, Ebags.com
Xavier Casanova, Founder & CEO, Liveclicker