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Generative AI models have reached the point where they can create interactive video from a single image or a short sentence. Production companies around these brands say that anyone can make a promotional video if they have the resources. pictures or drawings – and videos often do better than photos or text.
Peak XV is Tiger Global-backed Avatar released a new tool on Monday called Velocity. They create product videos directly based on the product link. The company is going against Amazon’s preferences and Googlewho are also experimenting with AI-powered video tools for marketing.
The basic values behind these tools are the same video production tools like Lica or Sythesia. Video production costs a lot of money, so companies can’t make videos for everything. However, thanks to AI, the cost of making videos is going down, and you can make more clips.
Avataar was founded by former Microsoft and Deutsche Bank employee Sravanth Aluru in 2015. earned $55 millionit previously focused on creating interactive experiences, AI-driven graphics, and 3D models for e-commerce. The startup is now focusing on using AI to create quality videos.
The company said 3D models and experiences have higher conversion rates than videos. However, many people participate in videos, so even with low conversion rates, videos win because of scale.
In February 2024, the company began testing its AI-powered video creation tool with customers. But at that time, Avataar had to involve people to help the brand make videos. The company began testing its standard Velocity tool in September 2024.
Its tool is already used by HP, Victoria’s Secret, Lowe’s, Newegg, Marina, TVS, and Bajaj to create various videos.
Avataar said that while brands use its services and tools to create dynamic videos for their popular offerings, Velocity will be useful in creating tools for content that isn’t smart enough to get a video production budget. Startups want to drive better conversion rates for these products through AI-generated videos.
“We can put the entire catalog and have video production of all the content in it through Velocity. This will improve the customer experience and also lead to better conversions by walking and talking around the product,” Aluru told TechCrunch.
The company also has an API that companies can integrate with their platforms to create videos for their own listings.
Aluru said that Avataar models or solutions are different from others because they collected information about objects through 3D. He said that brands can’t afford to have mistakes in their presentation videos, and the company has confirmed this.
“Our models understand small groups of products and their associated factors. Our tool can show different characteristics of the hammer compared to a smartphone. We focus on better storytelling using videos as a medium with the goal of finalizing the purchase,” he said.
Through its videos, Avataar also tries to create value for the product apart from providing information to the customer.
The company noted that it has created barriers to protect brand safety and product errors, so a brand can check for errors in the creation process and reject products created with the tool.
Amir Konigsberg, investor and founder of e-commerce startup Twiggle, said there is an opportunity to create videos for online sales, but they need to be unique to stand out.
“Creating video from product links is a natural extension of the e-commerce pipeline. Video is a proven driver of engagement and conversion, and leveraging this effectively makes sense. However, there are already a number of companies tackling aspects of this space—such as creating content, results, and more.” , created from different angles, cutouts, or shadows for photography. The challenge here is in representation, ensuring consistency, and following the certificates issued,” he told TechCrunch via email.
Konigsberg added that brands haven’t adopted AI-generated videos so far because it’s been difficult to maintain quality. However, he said that due to recent advances in technology, these devices could be useful for mass use.
