Personalised video is moving from novelty to expectation faster than most marketing teams have prepared for. Inside Retail Australia reports on the accelerating adoption of one-to-one video content across e-commerce and retail, driven by AI tools that can now generate personalised video at scale for a fraction of what it cost two years ago.
The use cases are spreading across the customer journey. Post-purchase thank-you videos with the customer's name and order details. Abandoned cart recovery with product-specific video reminders. Loyalty program updates showing individual points balances and reward options. Each touchpoint that was previously a text email or static image is now a candidate for personalised video.
The economics have shifted dramatically. Platforms like Synthesia, HeyGen and Maverick can produce personalised video at under $1 per unit at scale. That puts it within reach of mid-market businesses, not just enterprise brands with six-figure production budgets.
Cost per personalised video at scale using current AI video platforms, down from $50+ per unit in 2023
The engagement numbers are compelling. Personalised video emails are reporting open rates 2 to 3 times higher than text equivalents and click-through rates 4 to 5 times higher, according to vendor data from the platforms cited in the Inside Retail piece. Even accounting for novelty effect and selection bias in those numbers, the directional signal is strong.
But there is a gap between "the technology exists" and "our team can use it." Most marketing teams are not set up to produce video content at the velocity that personalisation demands. They are structured around campaign cycles, not automated content generation. The creative workflow, approval processes and brand guidelines were designed for batch production, not one-to-one output.
For Australian retail and e-commerce businesses, the timing matters. The Christmas 2026 planning cycle starts in Q3. Brands that test personalised video now have time to learn what works before the highest-stakes quarter of the year. Brands that wait will be testing during peak season, which is the worst time to experiment.
Why it matters
Personalised video is following the same adoption curve as personalised email did a decade ago. Early movers saw outsized engagement because the format was novel and competitors had not caught up. That window closes. Within two to three years, personalised video will be expected, not remarkable. The brands building the capability now are the ones that will still be ahead when the novelty wears off.
What to do about it
Pick one customer touchpoint and test personalised video against your current format. Post-purchase confirmation is the lowest-risk starting point. Set up a 30-day test with a sample of your customer list. Measure open rate, click-through rate and any downstream conversion impact. Use the results to build a business case for broader rollout. Do not try to personalise everything at once. Start with one moment that matters.
The race is on. The finish line is your customer's inbox.
