To simulate a live video feed, Manheim uses a codec, a piece of software that converts analog video signals into a digital format for transmission, in an MPEG file format. Luppino says codecs work by transmitting video stills in quick succession directly to the user’s computer so that those stills look like they’re moving—much like a cartoon. Manheim opted to use codecs instead of a live video stream because in an auction environment where every second counts, video streams often start and stop due to the number of people trying to access that stream at the same time. If the video were to suddenly stop because of the amount of traffic on Manheim.com, a buyer sitting at his computer might miss out on an opportunity to bid. The other advantage a codec holds over streaming video is that it doesn’t have to be downloaded onto an individual’s computer; the audio and video are served directly to users through the browser. And it’s cheaper than live video because Manheim can transmit more broadcasts over smaller pipes. (To read about the pros and cons of codecs and other technologies discussed in this article, see "Which Web Technology Is Right for You?" this page.)

Provide a Human Touch

One thing brick-and-mortar stores have over online stores—at least in theory—is a salesperson to help you when you have a question. Now that more consumers have broadband connections, it’s possible for companies to provide virtual salespeople to offer that humanlike touch. For example, Ikea, the Swedish furniture retailer, has created Anna, a graphical representation of a woman who tilts her head, blinks and smiles as she answers text-based questions.

Ikea launched this interactive shopping assistant feature, Ask Anna, on its U.S. website in 2004 in order to help customers prepare for their store visits. Because Ikea stores are so far-flung (the company operates only 26 stores in the United States), customers may drive hours to reach one. They prepare for their visits in advance in order to make the most of them—arriving armed with measurements and information from Ikea.com about the furniture pieces and accessories they like.

Melissa Robinson, central services manager of Ikea Direct, Ikea’s online operation, says that Ask Anna has enabled the company to reduce call center volumes by making it easier for people to find information on its website. "We wanted to find a way to make information more accessible," she says.

Anna is a bot, or software agent—a software program that "intelligently" answers text-based questions. Ikea created a knowledge base for this feature consisting of 1,600 questions, each with at least 10 variations and 2,100 answers altogether (because there can be more than one answer to the same type of question). When a user clicks on an Ask Anna link anywhere on the site, a pop-up window opens with an animated representation of Anna (who is not based on a real person), along with a text message in which she introduces herself as Ikea’s online assistant. Users can enter their questions in a box at the bottom of the pop-up window. Within three seconds an answer appears and a new webpage loads with additional information.