• by Daisy Whitney , Op-Ed Contributor, January 13, 2012

The more tailored the ad the better the response, right? In some cases, yes.

Video technology provider SundaySky has found that personalized video for its brand partners including Office Depot,LivingSocial,AT&T  and Overstock  can generate higher conversion rates, the company said.

SundaySky creates and delivers targeted videos dynamically to site visitors. The videos are like a cross between product videos and targeted video ads. “Targeted, personalized messaging based on users’ interactions typically generate 30% higher conversion rates,” SundaySky President Jim Dicso said in an email interview.

The videos work in several ways to lift brand and ROI metrics. Specifically, product showcase videos with product info can enhance SEO efforts and can increase traffic to product pages by as much as 10%, Dicso said. “Conversion rates are increased when a customer is presented with a product he or she wants or needs, and the products’ features are quickly shown. Presentation of a personalized product showcase video that is driven by user behavior on the site is also possible. This sort of targeted efficiency has been shown to yield a 3%increase in sales.”

Marketers are also using personalized video for billing and customer service needs, such as AT&T, which has used video messages to explain its bills to consumers.

“Video bill solutions provide an end-to-end automated video billing presentment. The personalized video clip is designed to address subscribers’ need for a clear, friendly and personal explanation of their bill,” he said. The video bills can tackle common issues subscribers have with their monthly billing statements, reducing calls to the support center… These videos can reduce billing related calls to customer service centers by 10%.”

Dicso also said SundaySky has seen an increase in businesses using personalized videos in confirmation emails, newsletters and other campaigns.