With the rapid development of generative AI technology, an increasing number of companies are starting to leverage these technologies to create product promotional videos. Recently, the startup Avataar, backed by Peak XV and Tiger Global, launched a new tool called "Velocity" that can generate videos directly from product links. The introduction of this innovative tool will make video production much simpler, even without requiring professional knowledge.
Avataar's founder, Sravanth Aluru, who previously worked at Microsoft and Deutsche Bank, established the company in 2015. Initially, Avataar focused on providing interactive experiences, AI-driven images, and 3D models for e-commerce. Now, Avataar aims to use AI technology to help brands generate videos, particularly in the face of the high costs associated with traditional video production, where AI-generated videos become especially significant.
Avataar states that while the conversion rates for 3D models and interactive experiences are higher, videos offer greater interactivity and shareability. Therefore, videos are undoubtedly a more advantageous choice in an overall marketing strategy. As early as February 2024, Avataar began testing its AI video generation tool with clients, although human involvement was still required at that time. Now, after several months of testing, the Velocity tool has become fully automated, significantly improving the production efficiency of product videos.
Currently, well-known brands such as HP, Victoria's Secret, and Lowe’s are using the Velocity tool to generate various product videos. Aluru pointed out that Velocity can create stunning promotional clips for products that lack a strategic approach or budget for video production, which will significantly enhance customer experience and improve conversion rates.
Additionally, Avataar offers an API that allows businesses to integrate the video generation tool into their own platforms, automatically generating videos for products. Aluru emphasized that Avataar's tools ensure flawless product presentation in videos by collecting a large amount of 3D rendering data. Their models can understand the attributes of different product categories to achieve better storytelling capabilities, ultimately driving purchases.
During the video production process, Avataar places a strong emphasis on brand safety and product accuracy, ensuring that the generated content meets client requirements. In this regard, investor Amir Konigsberg noted that although several companies are competing in this field, Avataar has the potential to stand out through effective innovation and quality control.
