Video content is here to stay, and Sarah Nelmes of Rakuten Marketing takes an in-depth look at what that means for marketers both today and in the future.
Video content is becoming increasingly popular as a marketing tool. The best part about creating video content is that you don’t need to have the fanciest devices, some of the most high-tech cameras these days are found in smartphones, giving publishers and influencers the ability to create content quickly and with ease.
Breaking Down Video Content
Video content is proven to increase traffic to a website and can also increase the time spent on a website, ultimately resulting in more purchases. As another benefit, the additional information shown in video content versus picture or text content has reduced the number of support queries.
Video content can be classified into four different categories according to an article on Forbes, and is a great way to help consumers better understand a product or service. These categories are:
- Explainers: Video content that goes in-depth into different details and uses of a product or service, discussing different ways this product could be utilized as well as the pros and cons of them.
- Product Demonstrations: An actual showcasing of how the product is used in a practical situation.
- How-To’s: Much like an explanation video, but rather than give an overview of the product this could be a step-by-step instruction video for specific uses of the product. Think of this as the difference between a video talking about a board game versus a video demonstrating how the rules work.
- Customer Testimonials: These videos have people who have used the product discussing their experience or sharing what they thought after having used the product. Another word could be “reviews” but not every customer testimonial is meant to be a review of the product.
Video Content Experiences and Opportunities
Video content is the most commonly used device to watch short content videos are mobile phones, followed by desktop/laptop, then connected tv, and lastly traditional tv. Studies show that 45% of people watch an hour or more of Facebook or YouTube videos each week, and 85% of videos viewed on Facebook are watched without the sound on. This means content has to be engaging even without being able to hear the audio. Twitter also saw a drastic increase in video views at the beginning of 2018 and video content is more likely to be shared on social media platforms than other types of content. Companies that use video marketing are seeing 41% higher organic traffic than those that don’t.
Video ad spending is expected to top $17 billion in 2018 and grow to almost $30 billion by 2022. A recent study done by Retail Drive shows that nearly 75% of consumers prefer video content versus text content for receiving branded marketing information. Statistics also show that video content is much more memorable than other forms of content and consumers who viewed video content retained 95% of the information versus retaining just 10% from reading text content. Viewers are more likely to watch a video to completion if there’s a reward at the end such as a discount code.
Shoppable videos, a version of video content where consumers can click on the featured products shown in the video and are directed to a page where they can then purchase that product, are becoming increasingly popular with marketers. Retailers who have begun to capitalize on shoppable videos are experiencing outstanding results. Monetizing videos by making them shoppable has increased revenue, customer engagement, and gives the customers a better experience.
With the prediction of upwards of $30 billion in spending on video ads by the year 2022, it’s clear that the trend of video content isn’t going anywhere. Video content is expected to become more precise and relevant as location and individual consumer data is taken into consideration. Shoppable video content can also help bridge the gap between digital marketing and brick-and-mortar sales.
Don’t Get Left Behind: What the Increase in Video Content Ad Spend Means for Marketers
Brands can use video advertising for a variety of ways to connect and interact with their consumer base. Video advertising is a great way for brands to send a message directly to their target audience whether it’s about feedback, changes, or statements. They can be used to establish a new brand or provide an update on brand changes to consumers. Putting out video content can help brands stay relevant to their current customer base, and help gain new customers as well.
Video ads are useful to relay new product or service offerings, as well as to highlight product features or “how-to”, to show how a product or service can be used or worn. These highlight, or “how-to” videos, typically lead to less customer support inquiries, and a faster purchase process for the consumer, as the video could eliminate questions the consumer may have prior to buying.
Video advertising is also a great way for marketers to engage their target audience, leading to more time spent on a marketer’s website, and often resulting in more dollars spent. Consumers spend more when they feel connected to a brand and video advertising engages consumers more than other types of ads.
With the projection of such high spend in video advertising over the next several years, marketers who don’t invest in video advertising risk missing out on valuable opportunities to connect with and reach their target audience.
Video ads are an easy way to engage a brand’s audience, and by not capitalizing on video content, brands may not reach their target market and may lose potential new customers as well. Lower engagement by consumers would ultimately lead to less money spent and lower revenue brought in.
Brands who aren’t utilizing video advertising will lose out to their competitors who are. The less awareness of a brand’s products and services, the less likely a consumer is to make a purchase.