Shamraiz | January 6, 2025
The way companies create content has changed with generative AI models, which are able to generate remarkable results from simple inputs like a single image or a short sentence. Companies using these models are now enabling anyone to produce engaging promotional videos with minimal effort. These videos often outperform static images or text-based content, providing a higher return on investment for marketing efforts.
Avataar’s Game-Changing Tool
Avataar, backed by Peak XV and Tiger Global, has launched an innovative tool called Velocity. This AI-driven platform creates product videos directly from product links, making video production more accessible and cost-effective. In doing so, Avataar takes on industry giants like Amazon and Google, who are also exploring AI-powered video tools for advertising.
Avataar is similar to other video-making platforms, Lumen5 and Synthesia, but with an emphasis on cost-effectiveness and scalability. The traditional method of video production is expensive and takes a lot of time, so it’s possible to promote only a few products. Velocity will allow businesses to create high-quality videos in volume, reducing production costs significantly.
Launched in 2015 by ex-Microsoft and Deutsche Bank employee Sravanth Aluru, Avataar was initially concentrated on creating interactive experiences, AI-powered imagery, and 3D models for e-commerce. The company raised over $55 million in funding and has now evolved to use AI for video production that can change how brands market products.
Whereas 3D models and interactive experiences have higher conversion rates, videos have a broader reach and a higher engagement quotient. The potential was recognized and Avataar started testing its AI video creation tool with its select clients during early 2024. In September, it had developed the fully automated version of Velocity through which video could be produced in a completely machine-driven manner.
Key Brands Adopting Velocity
Leading brands such as HP, Victoria’s Secret, Lowe’s, Newegg, Marina, TVS, and Bajaj are already utilizing Velocity to create diverse product videos. This tool is particularly valuable for generating videos for products that lack dedicated marketing budgets, allowing businesses to enhance customer experiences and improve conversion rates.
As per Aluru, Velocity allows the company to produce videos for complete catalogs of products. This will prevent any product from being missed out. “This improves customer experience and drives better conversions through motion and storytelling around the product,” he said.
Avataar’s proprietary models are different from others, with large data from 3D rendering. So, all presentations are glitch-free and accurate in the products.
It learns about every product category, highlighting relevant attributes – be it a hammer or a smartphone. “Our focus is on better storytelling through video, creating aspirational value while driving purchases,” Aluru explained. It also has guardrails in place for brand safety, avoiding inaccuracies in video output.
The Future of AI-Generated Videos
The potential of AI-generated videos in e-commerce is enormous. Amir Konigsberg, investor and founder of the now-defunct startup Twiggle, believes that to be different in a crowded market, one needs to stand out. “Video is a proven driver of engagement and conversions. The challenge lies in maintaining quality, ensuring consistency, and adhering to licensing standards,” he said.
With the recent breakthroughs in AI models, it has become possible to generate high-quality videos at scale, something that was not previously possible. Tools such as Velocity will soon redefine the e-commerce marketing landscape.
