Avataar: AI Video Generator for Products - Create Videos Easily
The Rise of AI-Powered Product Videos
Generative AI models are now capable of producing functional video content from a single image or brief text prompt. Businesses developing products based on these models assert that compelling promotional videos are now accessible to anyone with existing visual assets or recordings – a development driven by the generally superior performance of video compared to static imagery or text-based documentation.
Avataar Launches Velocity
Peak XV and Tiger Global-backed Avataar recently unveiled Velocity, a new tool designed to generate product videos directly from a product’s URL. This positions the company as a competitor to major players like Amazon and Google, who are also actively exploring AI-driven video solutions for advertising purposes.
Addressing the Cost of Video Creation
The core principle behind these tools mirrors that of platforms like Lica or Sythesia. Traditional video production can be expensive, limiting its application to only the most critical marketing efforts. However, the decreasing cost of video creation, facilitated by AI, enables the generation of content in larger volumes.
Avataar’s Evolution
Founded in 2015 by Sravanth Aluru, a former employee of Microsoft and Deutsche Bank, Avataar initially focused on creating interactive experiences, AI-powered imagery, and 3D models for the e-commerce sector. The company is now shifting its focus towards leveraging AI for video creation tailored for brands.
Video Engagement vs. Conversion Rates
While 3D models and interactive experiences have demonstrated higher conversion rates, videos generally attract a significantly larger audience. Consequently, even with potentially lower conversion rates, videos prove more effective due to their broader reach and scalability.
From Assisted to Fully Automated Video Generation
Avataar began commercially testing its AI-powered video creation tool with select clients in February 2024. Initially, human intervention was required to assist brands in the video creation process. The fully automated Velocity tool entered testing in September 2024.
Current Velocity Users
Several prominent companies are already utilizing Velocity to produce a variety of product videos, including HP, Victoria’s Secret, Lowe’s, Newegg, Marina, TVS, and Bajaj.
Expanding Video Coverage
Avataar recognizes that brands often prioritize video creation for their flagship products. Velocity aims to fill the gap by providing a cost-effective solution for generating product clips for items that may not warrant a dedicated video production budget. The goal is to enhance conversion rates for these products through engaging, AI-generated video content.
“We aim to enable comprehensive catalog coverage, creating videos for all products, which will improve the customer experience and boost conversions through motion and compelling product storytelling,” Aluru explained to TechCrunch.
API Integration
The company also offers an API that allows businesses to seamlessly integrate video creation capabilities into their existing platforms for automated product listings.
Differentiating Avataar’s Approach
Aluru emphasizes that Avataar’s models and solutions are distinct due to the extensive product data collected through 3D rendering. He highlights the importance of accurate product representation in videos, a key area where Avataar has focused its efforts.
“Our models are designed to understand the nuances of different product sub-categories and their associated attributes. For example, the tool will showcase different features of a hammer compared to a smartphone. We prioritize effective storytelling through video to ultimately drive sales,” he stated.
Aspirational Value and Detail
Beyond providing product details, Avataar’s videos also strive to create an aspirational value for the products they showcase.
Ensuring Brand Safety and Accuracy
The company has implemented safeguards to maintain brand safety and prevent product inaccuracies. The system includes checks for errors and can reject outputs that do not meet quality standards.
Industry Perspective on AI Video
Amir Konigsberg, an investor and founder of the now-defunct e-commerce startup Twiggle, believes there’s a significant opportunity to create videos for online sales, but they must be sufficiently unique to capture attention.
“Automating e-commerce pipelines with video generation is a logical progression. Video is a proven driver of engagement and conversions, and scaling this efficiently is a smart move. However, several companies are already addressing aspects of this space—such as generating backgrounds, after-effects, product renders from various angles, cutouts, or photorealistic shadows. The key challenge lies in differentiation, maintaining consistency, and adhering to licensing and attribution guidelines,” he shared with TechCrunch via email.
Challenges and Recent Advances
Konigsberg notes that brands have been hesitant to adopt AI-generated video solutions due to concerns about maintaining quality at scale. However, he suggests that recent advancements in AI models are making these tools increasingly viable for widespread use.
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