The Numbers Behind Video Marketing
Before reading this, we just want you to know that if you have a great idea for a video, film, commercial, documentary, tutorial video, or any type of marketing project, we’d be thrilled to discuss it with you and build a competitive and transparent budget to help your plan develop from an idea to a reality.
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It is the mark of a truly intelligent person to be moved by statistics -George Benard Shaw
We’ve been diving in and looking at some of the statistics that surround the video marketing and video production industry. Some of the statistics we’re so compelling that we wanted to take some time to share them with you and take a deeper dive into what they mean for your company and how video marketing could help you to build a better brand, increase sales, and give you a competitive edge.
It all started with an infographic that we created to help our customers to see the value that good video production brings to their business and to push potential clients forward so that they can put ideas together and start to build something new and exciting for their business.
Nothing to see here, just an exciting infographic for people that want to make money
The first data points that caught my attention have to do with why businesses aren’t using video marketing. As someone involved in this industry it makes sense why I see this and am intrigued by the reason. Here are the top reasons why.
33% said they lack the time to utilize video marketing
20% say it’s too expensive
15% don’t know where or how to start
Almost 50% of decision makers either don’t have enough time to focus their attention on video marketing, or just don’t know where to start.
All three of these points are valid, yet all come with solutions.
To those that don’t have time, that’s why you bring in professional video makers. When you need a roof on your house you don’t say “I don’t have enough time to install a roof,” you call a roofing company and they figure it out, give you the details, and then they get the job done. Hiring a video production company is as easy as sending an email or making a phone call. It’s not uncommon to have someone hire us, and then give us over to a new point of contact to figure out all the details. Hiring a production company that has experience gives you the advantage of being able to trust them to build out the video campaigns your looking for. They get started on pre-production which is the planning and development stage, they can write a script, set up locations, and make sure key talent is ready for the shoot. They handle the actual production and they bring you a rough draft with room for revisions. The process doesn’t have to be long and drawn out, it can be streamlined, precise, and effective.
We are very price conscious as a company. That means that when were buying new equipment or seeking out a service, price is often on the forefront when making our decisions. So we understand why this can be a deterrent. Video production isn’t a quick process, it requires talent and know how to be done well and effectively, and when hoping for a good return on investment you want it to be done right. Our best solution is to discuss budget up front and determine what you are wanting to invest in video marketing. Advertising should be a key part of your company spending but it doesn’t always have to break the bank. If it’s possible to realistically build a package within your budget we will, and if it’s not we will tell you and give you an idea of what it would cost if you decide to do it in the future as your company grows.
Not knowing where to start can be the most overwhelming feeling with any project or situation. Our experience in film and creative industries helps us to be creative for you. We can take the reins, pitch our best ideas, and walk you through the process. A good video team should be a powerful tool at your disposal and it should take the struggle out of building your brand.
91% of businesses used video marketing in 2023
Remember when video marketing was just for TV commercials? Well it’s all changed, video marketing is for everyone. From the barbershop, to the grocery stores, from the lawyer to the food truck. Videos are being consumed at huge quantities (more on that later) and businesses know it.
This actually brings me back to our second bullet point above which said that 20% of marketers think video production is too expensive. Let’s ask ourselves a couple of questions here:
Do you think that 91% of businesses are just burning money here and not seeing a return on their investment?
Or do you believe that the smartest companies in the world are investing in video marketing?
Number 2 is the right answer.
They’re investing time, energy, money, and they are reaping the benefits. Brands that we’re niche in the 90s now have large social media followings like tractor and lawn mower companies, or even local restaurants. Think about how multi billion dollar industries lost market share when companies like Dollar Shave Club or Harry’s came in making videos and creating a following in a “boring” industry like hygiene. Yet fast forward to this decade and all those major companies started following suit making their own compelling videos and tailoring their marketing to a new generation that consumes and finds products differently.
Word of mouth is still powerful, but the best word of mouth is video marketing. When you share a video on your social media profile and your friends share it, the views are astronomical compared to real life physical interactions which can be extremely valuable but also very limited.
Video content had the best return on investment of all marketing tactics in 2023
We can see in the infographic that short form videos had the largest ROI in 2023 with basically a third of the market for marketers. Coming in right behind it is photo content, and then rounding up the other 50% is blog posts, podcasts, and case studies.
Short form videos are anything from 5-90 seconds. Basically videos that fit on social media feeds and can be used for organic reach and advertising. We know and will see further below that most marketers are utilizing Youtube, Facebook, Instagram, and Tiktok. This kind of content is quick and effective because it’s right in the customer's eyes as they scroll through their feeds.
Have you ever clicked on an ad for a product, event, or service while scrolling through social media? I bet the answer is yes. That’s because the advertising is effective. Have you ever followed a page because you liked the content? For example, you see a video from a restaurant, you click and go to the page and the food looks great and then you realize it’s in your area. That is an automatic follow, and a great example of effective locational video marketing using short form videos.
At Mecoclub, we create a lot of social media short form videos and stills as part of our content creation packages. If we get hired to shoot a high production commercial we always suggest to our clients that we also cut numerous short form videos out of the main content to use on socials and web. That’s getting our clients more content for the money spent and is a great way to invest and diversify your video marketing strategy. When working with video professionals this should be part of the conversation virtually every time.
In other scenarios you may bring in a videographer to cover an event or shadow a day of business with an end goal of making numerous videos and stills for social media. You’d be surprised at the amount of content that can be created from a half day of shooting and a day of editing. If you’ve been spending multiple hours and your employees time and energy trying to keep up with socials, then hiring a team like us is likely your best option.
The most popular video types used by marketers:
Testimonials- Seeing another person and hearing them talk about products or services is still one of the most effective ways of convincing new customers to try those same products and services.
Explainer- Usually a 60-90 second video explaining what your business does and how it benefits your clients. Is most effective when it is memorable and funny, but can be effective as well being straightforward or serious depending on the target audience.
Social Media- Short form content to post daily or numerous times a week on social media platforms. Keeps you relevant and in front of your customers.
Presentation- You need to sell a product to a group of people, or show what your business does in a large setting. These are great for fundraisers, or proof of concept sales situations are usually tailored to the person giving the presentation
Product Videos- A lot of commercials you’ve watched are product based. Gatorade, McDonalds, Axe, Nike, Apple, etc. Sometimes these are just hype reels, showing the product with fog, and cool lighting or with effects. They can be a great way to unveil a new product or to get something quick and powerful in front of your clientele.
Sales Videos- These are straightforward. Similar to presentation video, but could encompass commercials you’ve seen for insurance or pharmaceuticals. Get attention and have a funnel to bring the leads directly to someone that provides the service or product that is being sold. Great for websites that want to convert leads from their webpage.
Teasers- Short, super promos. LIke a movie trailer but could be about anything. Cinematic, attention grabbing, and stylized.
Where do people post these videos and why?
We see in the infographic that Youtube is still top of the game for marketing purposes. I suspect that this is because it makes the most sense for retail style products to benefit a lot from Youtube. Especially if you are looking to make a larger purchase. The first place we go for researching our future purchase is to look up how the product works on Youtube, what people are saying, and all the details that help us be informed as consumers. It’s also a platform that is getting tons of streams from a wide range of consumers and they’re forced to watch some of the ads so it’s easier to aim your ads at consumers especially on a national level as you are looking to raise brand awareness, increase sales, and gain a larger following.
So when do people use Facebook and Instagram?
Local businesses clearly have a lot to gain from local targeting on the Meta brand of social media feeds. If you’re hosting an event, running a restaurant, or offering area based services it is still the best tool for the job.
Major brands also advertise on the social media platforms with a lot of ads that prescribe to the sales funnel format with “learn more” buttons or “buy now.” This gives them more analytics to track their target market and usually will also increase their social media presence.
It’s worth noting that influencers have become a huge part of video advertising, so major corporations and small businesses are all paying to have their products in videos on Youtube, Facebook, IG, Twitch, and others without actually making their own videos. This is still video marketing and is a large part of spending on Instagram and Tiktok.
According to marketers, the best return on investment was found on Instagram and Facebook. It’s always best to diversify and make videos for all platforms, but if you’re just getting started then it makes sense to start where people are seeing their best returns.
Still not convinced?
We ended our infographic with some of these following stats to put it all back into perspective.
In 2023 a third of all internet activity was people watching videos. 92% of internet users in the world watch at least one video every week. Advertising to the world is a lot more powerful than say a billboard. A billboard advertises to the street and those that use it specifically, but the biggest fish are in the biggest pond and that’s the world
Generating leads is the goal. Leads are how we make money and get the opportunity to make a profit. Have you ever spent a whole day cold calling and emailing potential customers? How did it go? 90% of marketers said that videos generated new leads for them in 2023. I’ll take those odds.
Even more marketers said that they made money on their video marketing with 92% reporting a good ROI.
Reduced support calls means that people went and watched a video and they learned how to fix their own problems, they learned how to use your product, they learned how to be your customer. That cuts down on labor and satisfies your customers.
21-30% of your budget should be spent on Video Marketing
According to marketers they used about 21-30% of their advertising budget on video marketing but some marketers spent upwards to 50%.
Go over your advertising budget, make a plan, diversify your spending, and reach out to a professional like us to help reach your sales goals.
At Mecoclub we offer a wide variety of services, though we specialize in video production we can also partner with you as creative and social media consultants, handle your photography needs, provide aerial photography and videos, and assist with business and artist development, management, and goals. We’re based out of Central Illinois but have teams that we can send out to almost any location and have worked all over the United States. Interested in finding out more? Let’s talk and see what we can do for you.
All statistics compiled from reports from Wyzeowl and Hubspot and there’s a wealth more if you want to read further and dive into the numbers behind video marketing.