Video marketing has become one of the best promotional tools on the web. Well-executed videos can grab attention faster than any other advertising medium as videos continue to draw internet users in droves. Research by eMarketer shows 66.7 percent of the 147.5 million U.S. internet users watch video online monthly. By 2014, eMarketer estimates that number will rise to 77 percent of internet users (193.1 million people).
Online video has surged in popularity due to the rapid proliferation of broadband and video technology advances. This has resulted in the production of cost-effective, premium videos, a dramatic increase in traffic to video-sharing sites, and online video's acceptance into the mainstream.
Consumers are receptive to video on websites, landing pages, search results pages, emails, and video-sharing sites because it is so engaging and self-explanatory. Video conveys information quickly and accurately, making it an excellent tool for marketers because consumers want to know more about the companies they deal with and the products/services they buy. Video is a very memorable medium. A study by The Wharton School of Business revealed that video improves comprehension and retention by 50 percent over a live presentation. Other studies have indicated that video speeds up buying decisions by 72 percent when compared to print. Therefore, company and product information communicated in videos can generate more leads and ecommerce sales.
The effectiveness of video advertising
It's well-known that video ads increase traffic and conversions. This has been documented by both online research firms as well as video solution providers. Here are a few key findings from some studies:
.Fox Networks and comScore (January 2010)
- Americans watched 32.4 billion videos during January 2010, according to comScore Video Metrix.
- Americans conducted 15.2 billion core searches that month, according to comScore qSearch.
- Americans watched more than twice as many videos as they conducted searches.
- While video and display advertising were both effective in driving site visits and advertiser search queries, when video and display ads were evaluated side by side, consumers exposed to video ads were 28 percent more likely to visit the brand site and nearly twice as likely to conduct a trademark search.
- Video was able to generate a more immediate impact in the first five exposures than display ads in terms of increased site visits and search queries.
When comparing the ad effectiveness of video vs. Flash companion banners, Dynamic Logic (2010) found that video is more effective than display when measuring brand lift.
Dynamic Logic (2004), in a classic brand awareness study based on more than 1,500 online ad campaigns from more than 1.7 million respondents, found that online video ads achieved greater branding with fewer impressions than all types of banner
Time and again, studies indicate video is an effective marketing tool that can be shared easier than any type of media. It's no wonder online video advertising has experienced robust growth since 2006.
Growth of video ad dollars
The 2009 IAB Internet Advertising Revenue Report (PDF) indicated digital video ad spending increased 39 percent to $1 billion in Q4 2009. In 2007, Forrester predicted U.S. online video advertising spending would reach $7.1 billion in 2012, with the retail/wholesale and travel/hospitality industries spending the most on video advertising.
The 2010 eMarketer study mentioned earlier states that spending on online video advertising will increase from $1.4 billion to $5.2 billion between 2008 and 2014. While video advertising is still a fraction of the total internet advertising spend (4 percent in 2009), video is on the rise as a web marketing medium.
Video marketing on the web
Online video has come a long way since the user-generated videos on
Short corporate videos are a hot new format that can be used to promote your business with a little online branding. Research shows that people prefer to watch a video rather than read about your company online. This type of video is displayed on your site to capture the essence of your business, and it gives connecting with your customers, prospects, and stakeholders a personal touch.
These short videos are easy and economical to create and can increase your website response as much as four-fold. One source of excellent online video production is CorpShorts, which produces customized corporate videos. Another source is Spotzer, which offers affordable videos that can be tagged with a business name.
Video interactive banner ads can be used to extend TV campaigns onto the web. Television advertisers can transform their commercials into interactive ads through video advertising technologies like Veeple, Innovid iRolls, or Mixpo.
Veeple makes anything in a video clickable by adding clickable elements to static videos through overlays that make the ads interactive. Innovid iRolls add post-production interactive objects to pre-roll video ads, providing rollover functionality for special offers and sales info. Mixpo transforms a TV spot into an interactive "Xspot" ad by adding overlays that make the video interactive with clickable objects, a call-to-action, or links to the end of the conversion funnel.
Video hot spots allow consumers to scroll over a product in the video to view an ad, click a link with product detail information, or purchase the product directly. A caption with details about the item appears over the product when the user scrolls over the hot spot. This is an unobtrusive way for marketers to reach consumers watching videos of their own choosing. However, this requires product placement efforts.
Videos with buy buttons can be created with Adobe's new Creative Suite 5, which provides a user-friendly way to build these Flash-enabled applications and deploy them across multiple ecommerce and m-commerce platforms without having to work with software code. This product builds on the omnipresence of Flash across the web.
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