Video Marketing Provides Great ROI
There’s no question: online video marketing helps businesses increase their brand awareness, generate genuine buzz, and increase sales.
What’s becoming more evident is just how much of a difference it makes, which is reflected in the results of the latest industry studies. One of the latest, released this year by Animoto, which surveyed 1,000 U.S. consumers, highlights the impact of video:
- 73% are more likely to make a purchase after watching a video.
- 96% say online videos are helpful when making purchasing decisions.
- 71% say watching online video content leaves them with a positive impression of the brand, service or company.
According to eMarketer, online video marketing is a strategic marketing approach that promises the greatest return on investment.
One key business-to-consumer sector is retail, where we are seeing video marketing used to assist a customer’s journey through the sales funnel. Video marketing offers a better view of products, they can be used to promote trends, express brand culture, and video marketing makes a statement that’s much bolder than most marketing and advertising methods. From longer-form videos on YouTube to bite-sized content on Vine and Instagram, the smart brands are getting on board, and they’re seeing results.
Zappos was one of the first and it continues to be one of the most mentioned retail brands leveraging online video marketing. Tens of thousands of videos are embedded on its website at any given time and its YouTube channel is full of products, how-tos, and company culture videos. Zappos also encourages its customers to play a role by allowing them to upload their Zappos Experience videos. While the online shoes and clothing shop is a huge video-hustle example, smaller retailers can start to emulate its success with a few small pieces.
French Connection is another example of a brand that regularly pushes video content to its network on YouTube and other social media. It creates and releases seasonal fashion updates, fashion tips, campaign teasers and series of short “films” that celebrate the “power of clothing.”
Most of them are short and sweet with creative fair – the company puts some of its fashions on a 360-degree moving display, which offers a more engaging experience that is trusted by consumers more than, say, digitally manipulated photos. Other top retail YouTube channels include Home Depot – with a variety of cool DIY project tutorials – Bed Bath and Beyond “product of the week” segments, and Best Buy how-to videos and “latest technology” news.
With mobile traffic set to increase 13X by 2017, retail brands have been quick to experiment with short-form video platforms such as Vine and Instagram. From Ford to H&M, Reebok, GoPro, Ralph Lauren and Tide, there’s even a mashup of the top branded short-form videos of February, 2014. From informative content to entertainment to shock value, there’s no shortage of creativity and unique approaches.
Strategically, it’s about honing in on content a retailer’s target demographic would find intriguing, engaging, informative and helpful, all of which contributes to brand awareness and increased sales. Most brands take a similar strategic approach to video marketing, though the content, of course, is quite different and tailored specifically to their audience.
Not convinced yet? Here are a few more stats from the initial study mentioned:
Video plays an impressive role in consumers’ lives with 94% watching it at least once a week from their desktop.
76% of smartphone owners watch videos at least once a week on their devices.
89% are likely to share a video if they consider it educational.
86% are likely to share a video if there is an incentive, such as a promotion or discount.
Roll and record, retailers. This is your year to make an impact with video marketing.
Lisa Ostrikoff is a TV journalist and anchor-turned-creator of BizBOXTV.
Mobile video has begun to accumulate scale, and has also turned out to be one of the few types of mobile content — along with games — that monetizes reliably and drives premium ad rates.
In a recent report, BI Intelligence breaks down the mobile video ecosystem, analyzing the behavior and devices behind the growth in consumption, and examining the demographics and behavior of mobile video consumers. We specifically detail how mobile video monetization is booming, and look at the new video ecosystem that is taking shape, with mobile devices — rather than television — at the center. The report is full of charts and data that can be downloaded and easily be put to use.
Here are five data points from the report that underscore the explosion:
1. 41%: In April 2012, only 20% of U.S. smartphone owners said they watched a video on their phone at least once a month. Only nine months later, in January 2013, that number had shot up to 41%.
2. 3.7%: Tablets are doing the heavy lifting. Two video-related activities — playing videos and sharing them — are among the top ten favorite things to do for tablet users. Although there are far fewer tablets in circulation than smartphones, tablets account for 3.7% of all online video hours watched globally, compared to 4.5% for smartphones. Further growth in tablet sales will therefore likely result in outsize mobile video growth.
3. 63%: Tablet users watch video according to patterns similar to those of traditional TV audiences. For example, tablet video viewers tend to spend most of their time on longer videos. Tablet owners spent 63% of their time on video sessions over 10 minutes in length.
4. 10x: Mobile ad platform Nexage reported in December that video-enabled mobile ads drew a premium as high as 10 times the CPM — or cost per thousand impressions — of a standard mobile ad. Flurry has boasted of eCPMs of $10 or more for its mobile video ad units.
5. $520 million: The mobile video ad market is growing rapidly. Mobile video will account for $520 million in ad spending in the U.S. this year, or 13% of the digital video ad market.