Generative AI models have reached the basic capability of producing a video that goes through at least one image or a short sentence. Companies that build products around these models claim that anyone can make a stupid promo video if they have some. Pictures Or Recordings — and videos typically work better than images or documents.
Backed by Peak XV and Tiger Global. Avatar On Monday, a new tool called Velocity was released. Create product videos directly based on a product link. The company will follow. Against the likes of Amazon versus GoogleHe is also testing AI-powered video tools for ads.
Similar to the ethos of the startup behind these tools. Video creation tools like Lica Or Sythesia. Creating videos is expensive, so companies can't make videos for everything. However, thanks to AI, the cost of video creation has become lower and the episodes can be produced in large quantities.
Avataar was founded in 2015 by Sravanth Aluru, a former Microsoft and Deutsche Bank employee. The company Raised more than $55 million in funding.previous interactive experiences; Focused on creating AI-powered visuals and 3D models for e-commerce. The startup is now focusing more on using AI to create videos for brands.
Experiences with 3D models have higher conversion rates than videos, the company says. However, Many people engage with videos; Therefore, although the rate of change is low, Videos win because of scale.
In February 2024, the company commercially tested its AI-powered video creation tool with consumers. But at that time, Avatar still involves people in the process to help create these branded videos. The company began testing its fully automated Velocity tool in September 2024.
Its device is HP; Victoria's Secret Lowe's, Newegg Marina, Used by TVS and Bajaj to produce product videos.
While brands use its services and tools to create custom videos for their flagship offerings. Avataar says Velocity will be useful in creating product segments for products that are not strategically big enough to get a video production budget. We want to initiate better conversion rates for these products through informative AI-generated videos.
“We can cover the entire catalog and create videos for everything they have through Velocity. This will improve the customer experience and drive better conversions through movement and storytelling around the product,” Aluru told TechCrunch.
The company also has an API that companies can integrate with their platforms to create product videos for automated subscriptions.
Aluru said that Avataar's models or solutions are different from others because a lot of data about products is collected through 3D rendering. He noted that brands can't afford to make product launch videos flawless, and the company made sure of that.
“Our models understand product subcategories and attributes associated with them. Our tool will highlight the different attributes of a hammer compared to a smartphone. We are very focused on better storytelling using video as a medium with the end goal of driving purchases,” he said.
Through its videos, Avataar not only provides detailed information to the customer but also tries to create an aspirational value for the products.
The company notes that it has built shields around brand safety and product inaccuracies, so a model can check for inaccuracies in a creation and reject the output created by the tool.
Amir Konigsberg, founder and investor in spin-off e-commerce startup Twiggle, says there's an opportunity to make videos for online sales, but they need to be unique enough to stand out.
“Generating video from product links is a natural extension of automating e-commerce pipelines. Video proves engagement and conversions, and it's smart to leverage it effectively. However, background creation; effects; product presentations from different angles; There are already several companies that address aspects of this space, such as clipping or photo-realistic shadows. The challenge here is to stand out. to be consistent; in compliance with licensing and attribution standards,” he told TechCrunch in an email.
Konigsberg says brands have so far not adopted AI-generated video solutions because of the challenge of maintaining quality. However, he hinted that recent improvements in models could make these devices effective for mass use.