The Video Commerce Boom: 6 Critical Market Dynamics Driving Exponential Growth

Discover the essential trends and market dynamics driving the exponential growth of video commerce in this insightful article.

The world of e-commerce is in the midst of a revolution. Over the last few years, we have seen more and more customers turning to video commerce to fulfill their shopping needs. This trend is expected to continue at an explosive pace, at a CAGR of approximately 32% between now and 2028. In this article, we explore the various trends that are driving the exponential growth of video commerce and what we can expect in the coming years.

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What is Video Commerce?

Video commerce is a relatively new concept that has emerged in the world of e-commerce. It refers to the use of short or interactive videos to showcase products and provide a personalized shopping experience for customers. Brands and retailers are leveraging video commerce to create compelling content that can increase engagement and ultimately drive conversions.

Video commerce can also refer to a mix of technologies, including livestreaming, interactive video, and one-on-one video chats.

One of the key benefits of video commerce is that it offers a more immersive experience for customers. Unlike static product images or text descriptions, videos can show products in action, highlighting their features and benefits in a way that is more engaging and memorable. This can help customers make more informed purchasing decisions and feel more confident in their choices.

Another advantage of video commerce is that it can help to build trust and credibility with customers. By showing products in detail and providing honest reviews and feedback, brands and retailers can demonstrate their expertise and commitment to quality. This can help to establish a loyal customer base and drive repeat business.

Video commerce is also a great way to create a sense of community around a brand or product. In encouraging customers to share their own videos and experiences, brands can build a sense of excitement and engagement that can help to drive sales and build brand awareness.

Overall, video commerce is changing the way customers shop online. By offering a more immersive and engaging experience, brands and retailers can create a more personalized and memorable shopping experience that can ultimately drive conversions and build long-term customer loyalty.

Projected Growth of the Video Commerce Sector by 2030

According to a recent report by Grand View Research, the global video streaming market is expected to reach $416.84 billion by 2030, registering an incredible CAGR of 21.5% from 2023 to 2030.

The rise of video commerce can be attributed to the increasing number of consumers who prefer to shop online. With the convenience of online shopping, consumers can easily compare products and prices from the comfort of their own homes. This trend has been further accelerated by the COVID-19 pandemic, which has forced many consumers to shift their shopping habits to online platforms.

Another factor driving the growth of video commerce is the rise of social media platforms like Instagram, TikTok, and YouTube. These platforms have become popular destinations for consumers to discover new products and make purchases directly from the platform. In fact, a recent study found that 55% of consumers have made a purchase through a social media platform.

In addition, advances in technology have made it easier for retailers to incorporate video into their online shopping experiences. For example, some retailers are using augmented reality technology to allow customers to virtually try on clothes or see how furniture would look in their homes.

As the video commerce sector continues to grow, we can expect to see more innovative uses of video technology in the online shopping experience. Retailers who are able to provide an engaging and personalized video shopping experience will be well-positioned to capture a share of this rapidly growing market.

Keep reading to discover some of the major market forces and trends that are further driving up adoption of video commerce.

Trend 1: The Growing Integration of AR and VR in Video Commerce

Augmented reality (AR) and virtual reality (VR) technologies have been around for a while, but their potential to revolutionize the video commerce industry is just starting to be realized. AR allows customers to virtually try on clothes or see how furniture will look in their home. This technology has the potential to eliminate the need for physical dressing rooms, making the shopping experience more convenient and efficient.

VR, on the other hand, can provide a fully immersive shopping experience, allowing customers to feel as though they are physically present in a store. This technology has the potential to eliminate the need for physical stores altogether, making shopping a completely virtual experience.

As these technologies continue to develop and become more accessible, we can expect to see a surge in the integration of AR and VR in video commerce. This will not only enhance the shopping experience for customers, but it will also provide businesses with new opportunities to market their products and services.

One company that is already making use of AR in its video commerce strategy is IKEA. Their IKEA Place app allows customers to see how furniture will look in their homes before making a purchase. This not only helps customers make more informed decisions, but it also reduces the likelihood of returns, saving the company time and money.

Other companies are also exploring the use of AR and VR in their video commerce strategies. For example, fashion retailer ASOS has launched an AR app that allows customers to see how clothes will look on different body types. This not only helps customers make more informed decisions, but it also promotes body positivity and inclusivity.

In conclusion, the integration of AR and VR in video commerce has the potential to revolutionize the way we shop. As these technologies continue to develop and become more accessible, we can expect to see more businesses incorporating them into their marketing strategies. The result will be a more convenient, efficient, and immersive shopping experience for customers.

Trend 2: An Increase in Mobile 5G Subscriptions

Video commerce has been gaining popularity over the years, with more and more consumers turning to online shopping for convenience and accessibility. However, one of the biggest challenges that video commerce faces is the need for a fast and stable internet connection. This is where the rollout of 5G networks comes in.

5G networks promise to provide faster download and upload speeds, lower latency, and increased capacity compared to their predecessors. With these improvements, we can expect to see a significant increase in the number of customers using mobile devices to shop via video commerce. This means that brands and retailers will need to adapt and optimize their video commerce strategies to cater to this growing market.

One of the biggest advantages of mobile 5G is its ability to support high-quality video streaming on-the-go. This means that customers can shop and watch product videos while commuting, waiting in line, or even while on vacation. This presents new opportunities for brands to reach and engage with customers in a more personalized and convenient way.

For example, a fashion retailer can create short and engaging videos showcasing their latest collection and offer exclusive discounts to customers who watch the video on their mobile devices. This not only drives sales but also helps to build brand loyalty and customer engagement.

In addition, 5G networks can also support more immersive and interactive video experiences such as augmented reality (AR) and virtual reality (VR). This means that customers can try on clothes virtually or see how furniture would look in their homes before making a purchase. This not only enhances the customer experience but also reduces the likelihood of returns and increases customer satisfaction.

In conclusion, the increase in mobile 5G subscriptions presents a significant opportunity for brands and retailers to enhance their video commerce strategies and reach a wider audience. By leveraging the benefits of 5G networks, brands can provide a more personalized and convenient shopping experience for customers, ultimately driving sales and building brand loyalty.

Trend 3: The Escalating Role of AI in Commerce

Artificial intelligence (AI) is rapidly transforming the way we shop online. With its ability to analyze vast amounts of data, AI is already being used to personalize the video commerce experience for customers. AI-powered chatbots, for example, are becoming increasingly popular in the e-commerce industry, as they provide customers with immediate answers to their questions or concerns. This not only saves time, but it also enhances the customer experience, as shoppers feel more connected to the brand.

But chatbots are just the beginning. Machine learning also allows brands to make targeted product recommendations based on a customer's browsing and purchasing history. This means that customers are more likely to find products that meet their specific needs, leading to increased customer satisfaction and loyalty.

Looking to the future, we can expect to see AI revolutionize the way video commerce works. For example, AI-powered video creation tools are already being developed, which can automatically generate product videos based on a brand's existing product data. This will save brands time and money, as they will no longer need to create videos manually. Instead, they can rely on AI to create high-quality videos that showcase their products in the best possible light.

Furthermore, AI can also be used to analyze customer data in real-time, allowing brands to make immediate adjustments to their video commerce strategy. For example, if a particular product video is not performing well, AI can help identify the problem and suggest ways to improve it. This means that brands can stay ahead of the competition by constantly refining their video commerce strategy to meet the changing needs of their customers.

Overall, the role of AI in commerce is only going to continue to escalate. As technology continues to advance, we can expect to see more and more brands embrace AI-powered solutions to enhance their video commerce strategy and provide customers with an even better shopping experience.

Trend 4: The Rising Trend of Interactive Videos

Interactive videos are revolutionizing the commerce landscape, providing brands with a novel way to engage with consumers and create a more immersive shopping experience. By transforming passive viewers into active participants, interactive videos have the potential to drive customer engagement, increase conversions, and improve brand loyalty.

One of the main ways interactive videos empower viewers is by inviting them to control their experience by making choices that direct the video content. This might include hotspots that provide additional information when clicked, chapters for easier navigation, or even quizzes and polls that provide instant feedback. This active involvement keeps viewers engaged for longer periods, and the rich, immersive experience can make the brand more memorable.

From a commerce perspective, interactive videos can directly influence sales by incorporating clickable product information and links to purchase. Instead of having to search for the featured product after watching a video, viewers can directly engage with products within the video, shortening the path to purchase. By integrating this seamless buying experience, brands can see a substantial increase in conversions and sales.

Brands looking to elevate their video commerce strategy can turn to platforms like Ghost, which allows the creation of interactive videos. By incorporating interactive elements into shoppable videos, brands can transform their video content into a dynamic online storefront that engages customers and drives sales.

In conclusion, interactive videos are transforming the video commerce landscape, enabling brands to engage more deeply with consumers and create a more compelling shopping experience. As technology continues to evolve, the possibilities for interactive video in the commerce space are virtually limitless, promising exciting opportunities for forward-thinking brands.

Trend 5: How Personalization Will Impact Video Commerce

Personalization is a vital aspect of video commerce, and brands are already leveraging customer data to create custom video content. In fact, the use of personalization in video commerce is increasing rapidly, and it's becoming a key factor in driving sales and customer loyalty.

One of the ways that brands are using personalization in video commerce is by analyzing customer data to create targeted video content. For example, a fashion retailer might use data on a customer's browsing and purchase history to create a personalized video showcasing similar products that the customer might be interested in.

However, the future of personalization in video commerce is even more exciting. We can expect to see even more sophisticated personalization algorithms that can tailor the video content to a customer's individual preferences, browsing history, and purchase behavior. This level of personalization will create a more immersive and personalized shopping experience for customers.

Imagine a scenario where a customer is browsing a fashion retailer's website and watches a video showcasing a particular outfit. The retailer's personalization algorithm can then analyze the customer's browsing and purchase history to create a personalized video showcasing similar outfits that the customer might be interested in. This level of personalization not only creates a more engaging shopping experience for customers but also increases the likelihood of a purchase being made.

Personalization in video commerce is not limited to just product recommendations. Brands can also use personalization to create videos that speak directly to a customer's interests and preferences. For example, a sports retailer might create personalized videos showcasing products related to a customer's favorite sports teams or athletes.

Overall, the future of personalization in video commerce is incredibly exciting. As brands continue to leverage customer data and develop more sophisticated personalization algorithms, we can expect to see a more immersive and personalized shopping experience for customers. Whether it's through targeted product recommendations or personalized content, the use of personalization in video commerce is sure to drive sales and customer loyalty in the years to come.

Trend 6: The Increasing Trend of Short-Form Videos

Short-form videos have become increasingly popular in recent years, with platforms such as TikTok and Instagram leading the way. These platforms have made it easier than ever before for users to create and share short, engaging videos that capture viewers' attention quickly. As a result, brands have recognized the potential of short-form videos as a powerful marketing tool.

One of the key advantages of short-form videos is their ability to reach a wider audience. Unlike longer videos, which may require a significant time commitment from viewers, short-form videos can be consumed quickly and easily. This makes them ideal for capturing the attention of busy consumers who may not have the time or inclination to watch longer videos.

In addition to their ability to reach a wider audience, short-form videos also offer brands the opportunity to maximize engagement. By creating videos that are short and snappy, brands can capture viewers' attention and hold it for the duration of the video. This can help to increase brand awareness, build brand loyalty, and drive sales.

Another advantage of short-form videos is their versatility. Brands can use short-form videos to showcase their products, highlight their brand values, or even entertain their audience. By experimenting with different types of content, brands can find the right mix of content that resonates with their target audience.

Overall, the trend of short-form videos is one that is likely to continue in the coming years. As more and more consumers turn to platforms like TikTok and Instagram for their daily dose of entertainment, brands will need to adapt and embrace this new format in order to stay relevant and engage with their audience effectively.


Video commerce is driving exponential growth in the e-commerce industry, and we can expect this trend to continue in the coming years. Brands and retailers that embrace the latest video commerce trends, such as the integration of AR and VR, personalization, and short-form videos, will be well-positioned to succeed in this rapidly evolving market.

Brands and businesses looking to capitalize on these trends and supercharge their video commerce strategy need a comprehensive solution. Ghost's video commerce suite, with its interactive video, livestreaming, and one-on-one live video shopping capabilities, offers just that. By embracing these innovative tools, brands can provide engaging, interactive, and personalized shopping experiences, ultimately driving customer engagement, boosting sales, and staying ahead in the ever-evolving digital commerce landscape.

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