AI-based models have now evolved to a point where they can create satisfactory videos from a single image or brief sentence. Many businesses developing products around these AI models assert that anyone can make an appealing promotional video using just a few images or recordings. These videos typically outperform static images and documents.
Peak XV alongside Tiger Global-backed Avataar has launched a new tool known as Velocity this Monday. This tool is designed to generate product videos directly from a product link. With this move, Avataar is setting itself up against tech giants like Amazon and Google, who are also dipping their toes into the world of AI-powered video tools for advertisements.
Avataar’s philosophy aligns with video creation tools such as Lica or Sythesia. Making videos is a costly affair, hence not all companies can afford to make videos for every product. However, AI has significantly reduced these costs, allowing the generation of numerous clips simultaneously.
Avataar was established in 2015 by Sravanth Aluru, an ex-employee of Microsoft and Deutsche Bank. The company, which has garnered over $55 million in funding, initially focused on developing interactive experiences, AI-powered images, and 3D models for e-commerce. Now, the start-up is shifting its focus towards utilizing AI to create videos for brands.
According to Avataar, 3D models and experiences generate higher conversion rates than videos. However, videos attract a larger audience, so even with a lower conversion rate, they win due to their wider reach.
In February 2024, Avataar began the commercial testing of its AI-powered video creation tool with clients. Initially, Avataar needed to involve humans in the process to assist brands in video creation. The company started testing its fully-automated Velocity tool in September 2024.
The Velocity tool is already being utilized by brands such as HP, Victoria’s Secret, Lowe’s, Newegg, Marina, TVS, and Bajaj to produce product videos.
While brands use Avataar’s services to create customized videos for their premium offerings, Velocity proves useful for creating product clips for products that don’t have a dedicated video creation budget. The start-up aims to improve conversion rates for these products using informative AI-generated videos.
With Velocity, Avataar can cover entire catalogs and generate videos for all items. This not only enhances the customer experience but also improves conversion through motion and storytelling around the product.
Avataar also provides an API that allows companies to integrate with their platforms to generate product videos for automatic listings.
Avataar’s models stand out from others due to the extensive data they have gathered about products through 3D rendering. The company ensures zero glitches in product presentation videos as brands cannot afford to have them.
Avataar’s tools understand different product sub-categories and their associated attributes. The tool will highlight different attributes of a hammer compared to a smartphone, focusing on better storytelling using video as a medium with an ultimate goal to drive purchases.
In addition to providing product details, Avataar’s videos also aim to create an aspirational value for the products.
Avataar has implemented measures to ensure brand safety and product accuracy by building a model that checks for inaccuracies and rejects flawed outputs.
Investor and founder of the now-defunct e-commerce startup Twiggle, Amir Konigsberg, believes that there is a potential for creating videos for online sales, but they need to be distinctive enough to stand out.
AI-generated video solutions weren’t adopted by brands earlier due to the challenge of maintaining quality at scale. However, recent advances in models hint at the possibility of these tools becoming effective for widespread usage.
