Video Location
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Is there any benefits or disadvantages to embedding product videos directly on the site vs. having them pop out in a separate window?
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We embed the videos right on the product and category pages of our ecommerce site. We like keeping them on the page so the customer stays on the page. If they want to pause or stop the video they can and they don't have to close a window.
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Not really - no, as long as the videos are technically on the same URL and your video sitemap references them only on the URL you want rich snippets for.
If you'd rather go for a lightbox than a inline embed, then that's fine - but do be careful of the implementation here, as you still need Google to be able to see the video file in the source HTML, so normally a CSS only lightbox or a basic JavaScript trigger is much better than anything that pulls in the video dynamically with JS (which can often prevent the video getting indexed).