Why Video Converts: The Psychology Behind Consumer Behavior

Consumer behavior is as complex as human relationships. The way we act is driven by past experiences, our current perceptions, and future needs. Then, there’s the impact of the economic climate, society, and technology. 

Motivation, whether it’s to quench an immediate thirst or the need to fit in, directs much of consumers’ purchasing decisions. The more pressing the need, the greater the desire to buy. If brands want to convince consumers to buy their products, they must speak directly to these implicit motivations. 

Videos are one of the most effective ways to do that. It works because it’s fast edutainment that fits in with our busy lives and selective and short attention spans. For 54.7% of internet users, watching videos is the main reason for being online. What’s more, a survey completed in late 2024 reveals that a massive 83% of consumers want to see more videos from brands. 

More importantly, it lets brands connect emotionally with consumers. Whether we like to admit it or not, we’re all emotional buyers.

Consumer behavior tries to uncover the reason behind specific purchases. If you understand the psychology behind their product choices and shopping preferences, you can tailor your marketing strategy more effectively by adjusting your messaging, ad frequency, and channel selection.  

For example, habitual buyers (and those slightly more adventurous who like variety) will give little thought to research. Factors like brand loyalty, cost, or convenience will be the main driving forces. 

If you want your product to make it on to their regular shopping list, your campaigns need to focus on growing brand familiarity and deals. For example, regular videos announcing mid-month sales on everyday products will be more effective than long product demos. 

On the other hand, if you’re selling more expensive products that consumers rarely buy, like a diamond ring or holiday abroad, you’ll encounter complex buying behavior. In this case, product research will play a much bigger role in their behavior. Knowing this, you can focus your video marketing more on product demonstrations and customer testimonials to dispel the fear that they’ll have buyer’s remorse.

Increases engagement

Better user engagement is probably the biggest benefit of using more video in your retail media strategy. In fact, according to Wistia, videos generate an average engagement rate of 39%. How-to videos in particular are very effective at capturing and holding consumers’ attention. In fact, a one-minute, how-to clip can deliver an engagement rate of 82%—double the average rate.

It’s not just the fact that you can combine striking visuals with text and music, but that the medium is also perfectly positioned for storytelling. If a single static image is “worth a thousand words”, imagine the storytelling capacity of video. With a cleverly crafted script, you can appeal to your target market on an emotional level which encourages engagement. 

What’s more, video is an excellent tool for delivering personalized messages, especially when paired with data-driven insights. If you can manage to add an element of personalization, consumers will feel like your brand is speaking directly to them, which can drive even higher engagement rates. 

For example, by sharing a short clip, you can reach the on-the-go consumer who may not have time for a lengthy video but still wants to engage with your brand. Then, to connect with buyer personas who are in the consideration or decision stage, you can create product demonstrations. The key here is to create impactful content that’s short enough to hold the viewer’s attention but engaging enough to encourage action.

Better information processing and retention

Videos make it easier to retain information more effectively. Consumers are more likely to remember a message delivered through video than via a static image or text. 

One of the reasons for this is that they cater to both our visual and auditory senses. As such, they allow brands to accommodate different learning styles with one digital asset. Whether you process information best through visualization or sound, video format is accessible to different preferences. 

Then, you have the added benefit of mixing up your content strategy using various video formats. You can, for example, use short-form videos for quick impact. They’re ideal for time-sensitive information like promotions or building excitement around a product drop that requires little explanation. Alternatively, you can use a longer demo for technical or complex products that require a more detailed explanation. 

Boosts trust and credibility

The rise of influencer marketing and user-generated content (UGC) has made video a key tool in building trust. Whether it’s a product demonstration, customer review, or a behind-the-scenes look at your company, video provides a more authentic and transparent view of what your brand represents.

Video can also humanize your brand. It shows the people behind your corporate identity, making it more relatable to consumers. 

Trust in a brand is a dealbreaker when it comes to conversion. In fact, according to Edelman, nearly 90% of consumers across the world use brand trust as a measuring stick for whether they must buy a product. What’s more, it often translates to customer loyalty, which is why using video to build a connection can have long-term benefits.

Even when a video gets transformed into an ad, it’s still highly trustworthy. Over 60% of US consumers trust video ads, according to EMARKETER. 

While videos can help to build trust, the platform where you choose to host your videos can either build upon that trust or erode it. For brands looking to use retail media, Amazon is the most trusted site. In fact, it’s the only tech company that over half of US adults trust with both their personal and financial data. As such, they will likely find video ads shared on this platform as trustworthy. 

In addition to retail media networks, you’ll also need to consider quality. Nearly 9 out of 10 consumers (87%) admit that video quality impacts brand trust. 

Encourages purchases

Arguably the most impressive statistic about the impact of video on consumer behaviour is that a massive 87% of consumers were convinced to buy a product after watching a video. Video’s significant impact on purchase decisions can be tied to the fact that it has become such a popular tool for product research. Nearly all consumers (98%) have watched an explainer video to learn more about a product. 

The visual nature of video allows customers to see a product in action and understand its features even if they’re thousands of miles away and can’t physically interact with the product (or sales person). As a result, consumers are less hesitant to buy a product online.

In fact, even if you were to shop in-store, you’ll likely not be able to see the product in action. If the product is boxed, you’re only limited to the one or two product photos printed on the box. 

If you can turn an explainer or unboxing video into a shoppable video ad that you can share on a retail media platform, you also reduce the barrier to purchase further. This direct integration of video and commerce is especially effective for impulse purchases and encourages faster decision-making. For example, with buywith’s myAthena, you can take it one step further to embed video ads on your website’s more impactful areas that are closer to the point of purchase like a product page. 

Video Is Winning Hearts and Minds 

Video is building a new generation of retail media stars. Consumers crave engaging, informative, and authentic content, and video is one of the best ways to deliver on these expectations. As a retailer, crafting a retail media strategy that incorporates video can drive higher engagement, boost conversion rates, and ultimately lead to increased sales.

By embracing video marketing, whether through shoppable videos, personalized content, user-generated content, or short-form videos, you can connect with your audience in ways that go beyond traditional advertising. It’s about meeting consumers where they are, telling your brand story, and helping them make confident purchase decisions.