Consumers Aren’t Looking For A Box-Office Hit Commercial, But They Are More Engaged With Online Videos
Unlike corporate giants with multi-million dollar marketing budgets, SMBs don’t have the luxury of trying out each and every advertising trend that dazzles the industry.
When it comes to risking invaluable marketing dollars on new ventures that may not pan out, many small and midsized businesses choose to remain in their comfort zones and stick to what they know.
Sometimes, however, these advertising trends become an integral part of consumer lifestyle. Take online video marketing, for example. Watching videos online has become a mainstream source of content as people constantly seek out entertaining content.
This week, comScore released its February 2014 US Online Video Rankings. The company found that in February 85% of US internet users viewed online video. Video ads accounted for 33.4% of all videos viewed and 4.5% of all minutes spent viewing video online.
Online video advertising isn’t just a fleeting trend; it’s here to stay and companies can no longer deny its ability to captivate and engage targeted audiences.
Below are three common misconceptions business may have about online video and their counterarguments. If you haven’t already invested in online video advertising, take a look; you just may end up changing your mind.
1. It’s Too Expensive
You don’t have to create a blockbuster hit. There are many different ways you can utilize online video for your business from simple product demos and explainer material to behind the scenes clips and how-to videos. Here are a few examples from some SMBs:
- Ceilume: educational/demonstrative video
- BBQguys.com: demonstrative/how-to video
- Viberg Boot: behind-the-scenes video
Informal video apps, such as Vine and Instagram Video, are inexpensive supplementary marketing platforms you should also consider. All you need is a smartphone and some good old fashioned ingenuity to create entertaining, consumable clips for your audience.
Vine boasts a registered user base of 40 million+ and Instagram’s 130 million users all have access to its video feature. Heather Taylor, vice-president at Ogilvy, reported that, “Brand Vines are shared 4x more than other online videos, and five Vines are shared every second on Twitter.”
According to Simply Measured, 59% of the world’s top brands are active on Instagram. This makes sense when you take into account that 40% of people respond to visual content versus written and videos generate three times the amount of inbound links than written posts.
Online video can, in fact, be more cost effective than other traditional marketing options. You don’t need a full production crew or the best gear to create content your audience will love.
2. It Won’t Resonate With My Target Audience
According to Nielsen’s March 2014 Cross Platform Report, people from every age demographic have spent some amount of time watching video online. In Q4 2013, 152.4 million people watched online videos; 53% of viewers were female, 47% were male.
On average, people spent seven and a half hours watching online video each month in 2013. Still convinced your target market is unreachable with online video?
Sure, more people within your target audience may watch TV, but traditional television advertising is costly and has a lower impact on viewers. Online ads have a greater impact than TV ads in terms of Nielsen measured metrics: general recall, brand recall, message recall, and ad likeability.
People want to be entertained with online video content, which is why we have seen steady growth in digital video usage. The snapshot of the infographic below also proves people are receptive to video ads online.
Image: Carlos Monteiro
Your target market is online and readily consuming video content. At this point, it’s just a matter of determining where and how you can reach these viewers.
3. Online Video Advertising Won’t Increase Sales
Are you ready for some more statistics? Here they come!
- 51.9% of marketing professionals worldwide cite video as the type of content with the best ROI.
- Online media influences more than 50% of in-store sales, making cross-channel campaigns for the omnichannel shopper more critical than ever. That number is expected to rise to 60% by 2017.
- 57% of consumers say that product videos make them more confident in a purchase and less likely to return an item, up from 52% a year ago.
- MediaPost reports that product videos play a key role in consumer purchase decisions, citing a nine-fold increase in retail video views at the start of the 2011 holiday season.
- Video ad enjoyment increased purchase intent by 97% and brand association by 139%.
Online video positively affects purchase intent and ROI, which means it does, in fact, have the power to increase sales.
These three misconceptions have kept SMBs from investing in online video for far too long. Making the leap into online video marketing isn’t a daunting process; you don’t need to go viral or rack up millions of YouTube views.
On the most basic level, consumers are just looking for informative videos to help them make purchase decisions and if you’re lacking in the video department, people may overlook both your product and your brand.