Leveraging online display advertisements that incorporate videos can dramatically change the way your business is viewed by your customers.
Online Video Marketing Statistics
To give you an idea of just how influential online video is (Forbes):
87% of online marketers are currently using video content in their digital marketing strategies
35% of total online ad spend is on video ads alone
200-300% increase in click-through rates by adding a video to marketing emails
80% of conversion rates increase when embedding videos in landing pages
90% of customers report that product videos help them make purchasing decisions
59% of company decision makers would rather watch a video than read an article or blog post
Why Video Advertising Is Important
If you haven’t been hiding under a rock for the past decade, then you’ve probably noticed the meteoric rise of online video advertising. Traditional media sources, such as print and analog media, no longer attract revenue growth opportunities as consumers and producers alike make the shift to digital media. Video advertising will claim more than 80% of all web traffic by 2019 (Inc)!
What’s So Important About Online Video Advertising?
One of the biggest strengths of online video marketing: it is visual and auditory in nature, meaning it’s easier for many users to remember rather than text-based content. 80% of customers remember a video they’ve watched in the last month. When customers are able to remember your video marketing content, they also remember your brand which can translate to more sales for your company’s products and services.
Customers will typically share videos that they enjoy which can also expand your online reach. Social media content with images or video is 40x more likely to be shared, thus, stepping into the A/V arena is where marketers will want to go when it comes to promoting their brand online (Hubspot).
4 times as many consumers would rather watch a video about a product than read about it, and 1 in 4 consumers actually lose interest in a company if it doesn’t have video (Animoto). This is too significant to ignore, especially if your business revolves around product sales.
Grow Your Revenue with Video
Marketers who use video actually grow their revenue 49% faster than non-video users. 41% of marketers who incorporate video into their content strategy see more traffic from search engines, with 27% experiencing higher click-through rates and 35% seeing higher web conversion rates (Aberdeen).
Revenue grew 49% faster with companies who use online media compared to those who didn’t. Sixty-five percent of business decision-makers will visit an advertiser’s website after viewing a branded video on the internet. It should be clear that quality and relevant video marketing content can dramatically improve your site’s SEO by driving user’s to your homepage.
Video can also enhance your conversion rates, as Hubspot found, reporting that 39% of all business decision-makers contact a vendor after viewing a branded video.
How Much Should We Be Spending On Video Marketing?
With video dominating content marketing, 64% of budgets are moving towards video content. Brands are willing to spend more and more on video, especially if they are targeting millennials. If it’s Millennials that they are after, indeed, their budget is undoubtedly going towards mobile platform spend. Agencies now have the ability to buy spots using “programmatic” spending, where a computer bids on best times, audiences, and can buy up the best pre-roll and mid-roll times at the best price for brands creating a cost effective solution.
Advertisers currently allocate digital video budgets fairly evenly across multiple channels including TV shows online, news sites, and more. This also suggests that advertisers are still in a test and learn phase, presenting an opportunity for channels to prove their effectiveness as a medium to supply and deliver content to the most engaged audiences.
Video is Perfect for Small businesses
Brands will even skip programmatic buys and go direct if the content is exceptional, and this means top quality content! Brands will put aside 15% of budgets for these types of buys explicitly in this climate. If you’re interested in spending top dollar to get in front of a ton of eyeballs, digital is no different from television. You can spend a high CPM (cost per thousand) for events like the Super Bowl or other sporting content, or go to apps like CBS, NBC, or Hulu, and target high impression shows. Small Businesses can put aside a small budget, specifically to use apps and editing tools, to make 15 second videos for their social media accounts and make a brand difference.