“I don’t want to read that 300 page book, i’ll just watch the movie when it comes out.” – Sounds familiar? When it comes to experiencing content, most people prefer a visual experience. It easier, quicker, and the retention rate for visual information is also much higher. Research has shown that over 80% of visitors to a website will watch a video, while only 20% will actually read the content of the page.
Online videos really broke through when websites such as Youtube allowed for User Generated Content to be shared. Over 6 billion videos are watched on Youtube every month, and over 100 hours of videos are uploaded to Youtube every hour. This means that more videos are uploaded every month than the 3 major networks have created in 60 years. According to Nielsen, Youtube reaches more US Adults 18-34 than any Cable Network.
From a marketing perspective, videos offer a lot of opportunities for businesses to present their message more effectively. Online video is currently the fastest growing segment of any type of internet advertising. Over 60% of business owners intend to ad videos on their websites within the next 12-18 months, and video is projected to be 1/3 of all ad spending over the next 5 years. The goal for any digital strategy is to attract buyers to their website, keep them on the website, and convert them into new clients.
After Google, Youtube is the second largest search engine in the world. Over 75% of users visit a marketers website after watching a full video and 26% look for more information after viewing a video ad. Websites are also 52 times likely to be found if it has an embedded YouTube video on it, and email marketing with an embedded video have a 96.4% click through rate. Once they get on the website, videos will keep visitors engaged with your products or services and tend to stay longer on the website, increasing the conversion rate. A well educated buyer is a happy buyer, 57% of consumers say that product videos make them more confident in a purchase and less likely to return an item. When potential buyers click on an ad and are send to a landing page, the conversion rate increases by 30-40% if the landing page contains a video about the offer. It allows the business to introduce the company and the offer and ensure that the buyer understand the value of the products or services.
Now how do you calculate the return on investment? The cost of video creation can range from $0 to over $100,000. Many times your website is the first impression that consumers experience of your business. So you want to make sure that that experience represents your level of customer service, quality of product or service, and that they are convinced to further explore. A well educated buyer will stay longer and spend more money.
You can either create your own video with your smartphone or a digital camera, create a slide-show of pictures and words, or you can hire a production firm to create one for you. Remember, this is the first impression that many consumers will have of your business, so cheap isn’t always cheap. If you outsource the production always look at the value of a new customer and the average conversion rate and then determine how many more sales you need to make to cover the cost. Internet marketing is all about attracting buyers who are ready, able, and willing to buy and being able to convert the maximum amount of visitors into sales.