Digital video marketing is an absolutely explosive promotional medium. Marketers are achieving increasingly impressive results through this channel. However, there are still many who don’t believe that it is a significant enough sector or effective enough to warrant their time and energy. We assert that this is not the case. The digital video space has grown into a significant channel, is continuing to grow even more, and is a very effective and efficient way to reach a targeted audience. In short, modern marketers cannot afford to miss out.
A Growing Promotional Segment
In March 2013, roughly 85% of US internet users viewed online video, with video advertisements accounting for roughly a quarter of all videos viewed. Furthermore roughly a third of all internet activity is spent watching video; and the average user is exposed to around 32 videos in a month. These incredible statistics shows that not only are an enormous number of people watching video online, but also a significant amount of those videos viewed are ads. Despite this, marketers will only spend about $4.14 billion of online video marketing this year. This may sound like a significant amount, but it is only 7% of the current television ad spend.
This may be a result of the perceived quality of online video. After all, a high end car manufacturer doesn’t necessarily want its ads to appear between funny cat videos. However, about half of all YouTube users watch business related videos at least once per week. Additionally, if you consider the type of content being consumed through Netflix and Hulu, it is evident that online video is maturing rapidly. Even YouTube is becoming increasingly serious. It has actually become the second most popular search engine in the world.
Some marketers are beginning to take note of this. Of 149 digital agency professionals, 42% said they would be shifting their focus more towards online video and away from television in the coming year. Furthermore, between 2012 and 2013 the number of online video advertisements increased by an incredible 64%. This is a clear indication that this form of marketing is here to stay.
A Highly Effective Channel
Digital video marketing is not just an increasingly popular medium, it is also a highly effective form of promotion. According to Nielsen and the Interactive Advertising Bureau, online video results in a 15% higher general recall, 33% higher brand recall, and 45% higher messages recall than television advertising. Furthermore, it is roughly 40% more likeable than its more conventional counterpart. This is primarily the result of better targeting. Whereas on television, an individual without a car may repeatedly see advertisements for an auto insurance provider, online that same marketer can choose to display content only toward car owners in covered regions.
The benefits even span beyond the video itself. Websites that include video content are 50 times more likely to appear on the front page of search engine results. In email marketing, including a video can increase click through rates by roughly 2-3 times. If this is an introductory email, video can increase the click-through rates by around 96%.
Clearly online video is a promotional channel that can’t be ignored, even by relatively small businesses. The benefits in terms of engagement and recall are substantial, and it is a growing channel. As it continues to evolve, online video is gradually becoming the equal, if not superior of its more conventional counterpart, television.