A recent report written and published by the Web Video Marketing Council and Flimp Media and co-sponsored by ReelSEO is painting a picture of a growing online video world that has plenty of room to grow and mature.
The composition of the survey respondents gives an idea of the market segment targeted by the surveyors: 56.4% of the 600 survey respondents are Owner/CEOs and 75% are Business marketing execs, therefore suggesting that most are leading relatively small marketing organizations or businesses with an important stake in video marketing.
In addition, because the three groups sponsoring the survey are video marketing-focused, odds are the marketers surveyed are sophisticated online marketers who have a good deal of interest and experience in video marketing. But only 21% of respondents worked at a marketing agency, so most of the respondents are not fully invested in video marketing either.
71% of surveyed marketers said they will increase spending on video marketing this year.”
Under this prism, it is comforting that 93% of respondents intend to use video again in 2014. And in fact, 82% said video had a positive impact and 71% added they would increase funding in 2014. Only 1% have decided to decrease funding vs 29% in 2012. So the video marketing market is growing at a faster clip as its efficacy seems obvious to most.
Not surprisingly, the reason most often cited for holding back on more spending is the cost of producing video (37%) and the difficulty producing it (27%). As video marketers are holding back on more costly and difficult projects, they are focusing their efforts on video formats with lower production value, like “on-location shoot videos,” which 78% of responders produced in 2013, and “testimonial videos,” which 68% of responders produced.
While still important in the video marketer’s arsenal, “moving image/presentation videos” and “motion animations” come in third and forth positions in the ranking of types of videos produced. Although they are not identified as such, I would venture to state that a large portion of the animation segment is tied to “explainer” videos, which have become especially popular with fledging tech and non-tech start-ups.
The promise of Video Marketing seems to be taking hold in other communication areas too, like corporate and employee communications as well as fundraising.
Video is also increasingly being used to improve the quality and dynamism of company site, generate sales leads and reach customers via email marketing. The latter has been a rapidly growing tactic for video marketers as 60% of them felt that video email marketing increased the likelihood of converting to sales. In total, 86.2% of responders thought that video email marketing was either somewhat or very effective. Tactically speaking, most agreed that the best way to use video was to link from an embedded picture to a video player on a website.
Online video advertising is used by only a third of online marketers who host on YouTube.
The most surprising finding in my view is that online video advertising is used by only a third of online marketers who host on YouTube, which was used by 94% of responders. There are many reasons why this could be. But based on the types of video produced by the survey responders, the most likely explanation is that they use their video to complement and not drive their online marketing efforts, which is probably a wise and pragmatic approach.
There are other possible explanations for this lack of affinity for paid promotion, including the idea that other types of promotion are more effective. On the other hand, the marked preference for social sharing versus social promotion also seems to indicate that video is shared with hopes its reach will be amplified at a very low cost.
So we are presented with the following dilemma: after investing a good deal of budget into video marketing, marketers have little appetite for investing into promotion, perhaps because video is already showing a good deal of efficacy without it? So the next question small B2B and B2C video marketers need to answer is how they can use paid promotion and advertising to amplify the reach of their video and how to optimize their overall digital promotion spend.