What is Interactive Video? Is It Worth Using?

Grabbing and holding your audience’s attention is more challenging than ever. That’s where interactive videos come in, and they’ve become the #1 tool for storytelling and marketing.

Unlike traditional videos that follow a fixed path, are shot with one background, tend to be long, and have trouble getting to the point fast, interactive videos allow viewers to actively engage with the content, are more dynamic, and get to the point faster.

In this article, we’ll break down exactly what interactive videos are, why they’re so powerful, and how you can create your own, from concept to launch.

What is the Difference Between Interactive and Interactivity Videos?

Interactive videos and interactivity videos are usually used interchangeably. but there are a few differences to note.

Interactive videos are ‘complete experiences.’ This means they allow viewers to actively participate through clickable elements, decision points, and branching narratives. Think of them like a "choose your own adventure" story where viewers make choices that affect the outcome. For example, a viewer might click different parts of the screen to explore a virtual showroom or select different paths in a training scenario.

Interactivity videos, on the other hand, focus more on specific interactive elements or features added to traditional video content. These could include popup questions, quizzes, or hotspots that appear at certain timestamps without necessarily changing the video's core narrative flow.

Interactive vs Traditional Video

The key difference between traditional and interactive videos lies in viewer engagement. Rather than passively consuming content, viewers become active participants in their learning or entertainment experience.

This increased engagement typically leads to better information retention and more meaningful connections with the content.

Interactive videos can increase viewer retention rates by up to 90% compared to traditional video formats. This dramatic improvement stems from several key factors:

How to Create Interactive Videos with AI-Powered Tools

Interactive videos have never been simpler to produce.

No need to hire an expensive production company anymore. Generative AI and AI-powered platforms streamline the entire production workflow, from initial concept to final rendering, eliminating the need for extensive video editing expertise or programming knowledge.

1. Avatar Generation

Talking Avatar lets you create lifelike presenters from just a photo or script. This means you can produce interactive, human-led videos without hiring talent or doing video shoots. Perfect for explainer videos, onboarding guides, or even virtual shopping assistants in your interactive content.

You can also match avatars to different demographics or regions, adding a personal touch for different audiences automatically.

2. AI Translation

Interactive videos thrive when they speak your audience’s language, literally. With AI-powered translation, you can turn one video into a multi-language experience, letting users explore and engage in their native tongue. This isn’t just about subtitles; it’s full voiceover translation synced perfectly with on-screen content.

For global campaigns, training modules, or tourism experiences, this tool breaks language barriers and boosts accessibility with ease.

Best Practices for Designing Interactive Videos

Here are three best practices to keep in mind when designing interactive videos:

1. Keep Interactions Simple and Intuitive

Don’t overwhelm viewers with too many choices or complex controls. Use clear buttons, short prompts, and logical navigation so users know exactly what to do next. Think of it as a choose-your-own-adventure: smooth, easy, and fun.

2. Design with Purpose

Every interaction should have a reason—whether it’s to teach, guide, or engage. Avoid adding clicks just for the sake of it. Make sure each interactive element supports the video’s goal, like checking understanding in a training video or leading to a product in a marketing clip.

3. Test and Optimize

User-test your video before launch. See where viewers click, where they drop off, and what they skip. Use that feedback to improve flow, shorten segments, or clarify instructions. Tools like heatmaps and analytics are super helpful here.

Real-World Examples & Use Cases for Interactive Videos

Need some inspiration? Here are three examples of how brands used interactive videos:

1. Travel Industry

The Amazing Thailand campaign by the Tourism Authority of Thailand turned a traditional travel film into an engaging interactive experience using Smartzer's shoppable video software. 

Viewers could click directly into the video to explore featured destinations like hotels, restaurants, wellness spots, and tour packages, with each element linked to more information and calls to action. 

This interactive format made it easy for users to discover and engage with the content, resulting in a 39.7% engagement rate and a 24.2% click-through rate, significantly outperforming traditional video benchmarks.

Source: Smartzer

2. Food and Beverage Industry

Source: Smartzer

Cape Mentelle, a historic Australian winery, expanded its reach into the gourmet gift market by launching shoppable videos in collaboration with The Hamper Emporium. 

This interactive format allowed viewers to explore and purchase products directly within the video, creating a seamless and immersive shopping experience. The campaign achieved outstanding results, with a 93% product CTA click rate and a 40% engagement rate, positioning Cape Mentelle as a digital innovator in both the wine and gourmet gift industries.

3. Customer Service

Here's a compelling example of interactive video in action for employee training.

The scenario focuses on customer service skills, specifically helping team members navigate challenging client conversations with confidence.

In this training experience, viewers meet Joseph, an upset customer presenting a complex situation. As the scenario unfolds, employees must make real-time decisions about how to handle Joseph's concerns. Each choice branches into different conversation paths, leading to various outcomes based on the approach taken.

For instance, if an employee chooses to immediately offer a solution without fully acknowledging Joseph's frustration, the situation might escalate. However, selecting an empathetic response followed by strategic problem-solving could lead to a positive resolution.