It's no surprise that the consumption of online video is growing dramatically. According to COM score, frequent viewers now consume more than 4.5 hours of online video per month. The 18–24 year old market spends more time watching video online vs. TV!

But how does online video impact retailers? COM score also reports that the number of online shoppers who watch retail videos grew 40% in the last year. An eMarketer report released in January 2009 identifies video or streaming media as the No. 1 feature retailers plan to add to their sites in 2009.

Should you incorporate video into your Web sites? It depends on how you plan to use it. Don't adopt technology for technology's sake. Used incorrectly, video can distract customers from buying.

When evaluating new functions for your Web site, stay focused on your business goals and think about how video can help you move customers and prospects to those goals. Incorporate video in ways that will motivate your site visitors to take action — whether that action is to buy something, register their e-mail address or search for a local store that carries your product. Develop a strategy.

There are lots of good reasons to consider adding video to your site. First, video is interactive. It will keep customers on your site longer and can enhance their experience of your brand. Video is more personal and can help build trust with your customers. It also can bring your product and brand to life in ways unattainable through text and photographs. In the report "Video Usage in E-Commerce: The Best Is Yet to Come," eMarketer states that product videos can lower the number of abandoned shopping carts, reduce return rates and generate higher sales.

Some ways you can incorporate video into your Web site include:

• A video blog;
• Demonstrations of how products work;
• Interviews with artists;
• Testimonials from customers;
• New product showcases;
• 360-degree views of products and room settings that show how to pull together a look;
• As premium content requiring registration.

Some of the common challenges with online video are picture quality; speed of download; production costs; and interruptions due to buffering issues. Make sure your hosting solution can accommodate the bandwidth necessary for videos. As for production costs, you don't need high-end video production equipment or professional studio time. A decent video camera costs about $200. Someone you know probably already has an eye for editing videos. A film student from your local college or an employee who is an avid YouTube user can be a great resource. Just be sure to script and storyboard your video before you shoot.

Once you record a video, be sure to highlight it right on your home page. If you have multiple videos, add a link on your home page to your video library. Keep videos short — one to five minutes. Within your site, one of the best places for video is on product pages. Give your customers more ways to view your product and make an informed buying decision through text, images and videos. Visit QVC.com or IsabellaOliver.com to see how video can be incorporated into product detail pages.

Tag the videos so search engines find them. Post your video on YouTube, Yahoo Video and AOL Video and any other appropriate site available to you such as local business chambers, affiliate sites and video-sharing sites as part of your lead generation program.

Online video ads are another great way to incorporate video into your marketing mix. In 2009, online video advertising is projected to grow 45% to $850 million, according to eMarketer's latest forecast.

Video ads can be done in a variety of formats. There is the pre-roll commercial (15 to 30 seconds) that runs prior to news videos; sponsorship of special news segments; and in-ad videos. In-ad videos can have nearly triple the click-through rate of standard ads. A good combination buy is a video with a standard banner ad running next to the video to optimize click-through rates.

Also, be sure to craft your videos so your core message can be communicated without audio, and put your most important information up front since not everyone will watch the entire thing. Finally, remember to change up video commercials regularly. There is just as much viewer fatigue on videos as there is on other traditional online ads.

Is video for everyone? Not necessarily. But if you ignore video applications your Web site may become old and dated. Don't be left out.