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The Value of Video for Business

Digital video is a hot topic driven by increasing consumption and no doubt by Cisco’s much-quoted prediction that over 80% of internet traffic will be video by 2020. But what exactly is the value of video for business?

Digital video is a hot topic driven by increasing consumption and no doubt by Cisco’s much-quoted prediction that over 80% of internet traffic will be video by 2020. It, therefore, comes as no surprise that online video ad spend is expected to grow a whopping 31% next year.

But what exactly is the value of video for businesses and their brands? To help determine this the Facebook Marketing Science team commissioned Nielsen to analyse data on how the value of video for brands and specifically how video ads affect brand metrics.

Results show that from the moment a video ad was viewed (even before one second), lift happened across ad recall, brand awareness, and purchase consideration. Data showed that people who watched under three seconds of the video created up to 47 % of the total campaign value, and people who watched for fewer than 10 seconds created up to 74 %. That means that while value increased the longer people watched, people didn’t have to watch a whole video to be affected by it. Even video views under 10 seconds effectively build awareness and drive purchase intent.

Here are 5 key points that I believe highlight the value of video for businesses in achieving their objectives:

  1. Trust is the foundation of conversions and sales. Videos foster trust, as the medium presents brands, concepts and products through a conversational form. This creates a sense of individual approach which is why 57% of consumers say that videos gave them more confidence to purchase online. This fact also illustrates how video is a great tool to help secure stakeholder buy-in and support behaviour change objectives.Videos increase the time spent by visitors on your website. Longer exposure further builds trust and signals search engines that your site has good content. Since Google owns YouTube, there has been a significant increase on how much videos affect your search engine rank. In fact, you are 53 times more likely show up first on Google if you have a video embedded on your website.
  2. People like to share emotions, not facts. In a recent study, most users said they would share a branded video with their friends if it was entertaining.
  3. The average click-through-rate of video ads is 1.84%. That’s the highest CTR of all digital ad formats.
  4. Email campaigns that incorporate video receive an increase click-through rate by 96%.
  5. According to Statisticbrain.com, eight seconds is the average person’s attention span and only 28% of words are read on an average web page. Imagery is processed 60,000 times faster than text as reading requires your brain to be fixed in one place, to form a mental imagery system that helps us to conceptualise.

 

Communication is a critical success factor when it comes to developing and implementing businesses strategies. Through it’s emotional affect, ease of use and ability to cultivate trust, video is one of the most powerful tools that can support organisation objectives to realise their maximum potential.

Below is an infographic illustrating some of the key trends and statistics for digital video in 2017:

video-benefits-2017-infographic

Author: Matthew Rosmarin – Creative Director at GCX Engage

References:

https://www.forbes.com/sites/forbesagencycouncil/2016/12/19/six-video-advertising-trends-that-will-dominate-2017/#55f917782d07
https://www.facebook.com/business/news/value-of-video
https://www.wyzowl.com/video-marketing-statistics-2017.html
https://www.psychologytoday.com/blog/behind-online-behavior/201505/video-vs-text-the-brain-perspective
http://www.insivia.com/infographics/10-video-stats-2017-infographic/

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