According to a study sponsored by Vidyard, and conducted by Demand Metric to explore several aspects of video marketing and the emerging role of video marketing platform technology, 95% of this study’s participants report that video, as a form of marketing and sales content, is becoming “somewhat or far more important” to them.
The general assumption in the marketing community today is that video is an important and valuable form of marketing content. To validate this assumption, study participants were asked to rate how the importance of video, as a type of marketing or sales content, is changing in their organizations.
The Changing Importance of Video as Content
Source (All report data): Demand Metric, September 2014
An analysis of the study’s data provides these key findings:
Large companies are leveraging video more heavily. Over one-third of large companies produce more than 100 marketing videos annually, compared to just 4% of small companies and 5% of medium companies that produce videos at this pace.
Marketing Videos Produced Annually
Over 70% of respondents claim that video performs better than other content for producing conversions, and almost half state the ROI of video is getting better, says the report. However, over one-fourth do not know the ROI for their video marketing efforts.
Conversion Performance of Video
How is ROI of Video Changing
86% of study participants are using some form of measurement of video marketing effectiveness. Those using intermediate to advanced measures of engagement are producing more videos, reporting substantially better conversion performance and getting better ROI.
Video Content Effectiveness Measures in Use
While it is encouraging that 86% of this study’s participants are using some form of measurement for video content effectiveness, says the report, most are just using basic measures of consumption. To know with precision how well video performs and what kind of ROI is attached to video marketing efforts requires tracking the right set of effectiveness metrics, which can be categorized as:
Companies invest in what they feel is strategic and will produce a return. The study investigated the budget for video content as a means of assessing its strategic importance and overall value.
Video Content Budget
When looking at this budget data and isolating just the 69% of study participants that indicated their video content budgets are increasing, importance and metrics are roughly the same as for the full survey sample. There are two notable differences in this comparison, however:
Either of these two outcomes of video content usage are sufficient to warrant an increased investment in video content, opines the report. The fact that video content produces both of these outcomes makes it easy to see why so many organizations are putting more of their budget dollars toward video content.
This study has already established the value of video in producing conversions. It stands to reason that the consumption of video is also an effective indicator of lead quality or business opportunity, says the report. There’s little doubt that having data at the individual lead level about video content viewing has value when virtually every participant indicated such in the survey.
Value of Video Viewing Data for Individual Leads
Concluding, the report says that, as a type of content, video is still very much on the rise with its importance continuing to grow. This study has shown that video converts better than other forms of content; and this performance certainly contributes to an improving ROI for video. Quality video is also getting easier to produce and the cost of doing so is coming down. For all of these reasons, the decision to invest in video is an easy one.
For additional information about the study, please visit Demand Metric here.