A new study by VidYard and Demand Metrics suggests ignoring video marketing is a major mistake. Around 70 percent of marketers who have already begun using the dynamic format report that conversion rates for video content higher are than other formats they’re using to drive results online.
What’s even more promising is that 48 percent of all the decision makers, marketers and sales reps surveyed said the ROI for their video content is improving.
Video ROI growth
One explanation for the improvement in ROI is that consumer demand for streaming media is climbing. Data compiled by TNS Global found that 78 percent of U.S. consumers who go online at least once a week are watching digital videos while they’re logged in. It’s even higher in other countries, like the UK (79 percent), Canada (84 percent), China (89 percent) and South Korea (95 percent). The fact of the matter is: People unapologetically love video. They’re watching full-length TV shows, short viral clips and brand videos online, proving that it’s not just one format that’s wildly successful.
78 percent of U.S. consumers who go online at least once a week are watching digital videos while they’re logged in
While 7 out of 10 companies have seen a spike in marketing conversions with video, we can’t overlook the fact that not every company is seeing the same ROI incline.
Why are some experiencing success while others are waiting for the needle to move?
It’s possible that measurement capabilities are to blame. Over a quarter of the people VidYard surveyed said their video ROI is unknown, and 14 percent don’t have any way of effectively measuring their results. Another 48 percent use basic analytics systems, while just 14 percent use a system they’d consider “advanced.”
Bigger investments, higher expectations
With 69 percent of companies planning to dedicate more budget to video campaigns this year, it’s critical that marketers invest in content strategies AND necessary measurement tools. This prevents brands from missing the boat with video, but it also gives them an edge on competitors because they’ll be in a position to analyze campaigns and draw meaningful conclusions about just how much of their content is adding to the bottom line (and how much more budget they should get to further those results).
Here’s a concrete example about how it works: This company generated over 100 conversions from its video content within a business quarter.