Why would a business use YouTube?
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- Claribel Carpenter
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1 Why would a business use YouTube? YouTube can provide a huge bang for your marketing buck. That s because YouTube delivers a huge audience for very little investment. Large businesses have long embraced video marketing, in the form of traditional television advertising. But television ads are expensive, and typically outside the purview of smaller businesses except, perhaps, for little-seen late night spots on local channels. Thanks to YouTube, however, businesses both large and small can afford to market themselves via online videos. The cost of posting a video to the YouTube site is zero; YouTube doesn t charge anything to upload, host, or stream videos. The only cost you have is the expense of shooting and editing the video. This makes YouTube marketing affordable for virtually any business.
2 Why would a business use YouTube? Let s face it: Consumers love to watch videos. We re becoming less a society of readers and more one of watchers; the average consumer would rather watch a video than read a text-based advertisement. Like it or not, you need to be aware of and adapt your marketing mix to this trend. You can include a lot of information in a short three-minute video, and you can present that information in an entertaining and engaging fashion. People like to be entertained, educated, and informed, and online video can do all three things and, in the process, provide a clear picture of the product or service you re offering.
3 People like to be entertained, educated, and informed, and online video can do all three things In 2012 Red Bull engaged in an exciting product awareness campaign with Felix Baumgartner Felix Baumgartner floated up to over 24 miles above the earth in a balloon, and then jumped. The documentation of the event was a collaboration between GoPro and Red Bull.
4 Why would a business use YouTube? Online video ads are quickly becoming the medium of choice to drive both brand awareness and sales. The results show that there are clear ROI (return on investment) advantages to placing video ads.
5 Return on Investment - ROI ROI Explanation excerpt from webstrategiesinc.com: ROI is calculated using two primary metrics: the cost to do something, and the outcomes generated as a result (typically measured in profit). The revenue to marketing cost ratio represents how much money is generated for every dollar spent in marketing. For example, five dollars in sales for every one dollar spent in marketing yields a 5:1 ratio of revenue to cost. A 5:1 ratio is middle of the bell curve. A ratio over 5:1 is considered strong for most businesses, and a 10:1 ratio is exceptional. Ratios are easy to understand and apply. As long as the right tracking mechanisms are in place, everyone can quickly determine if a campaign was successful or not. What is counted as a Marketing Cost? When calculating your ratio, a marketing cost is any incremental cost incurred to execute that campaign (the variable costs). This includes: Pay per click spending Display ad clicks Media spending Content production costs Outside marketing and advertising agency fees
6 Return on Investment - ROI ROI Examples of Success, Web-Related: Example Microsoft realized that webinars (internet-based seminars) were a great way to sell products (mostly software in their case). They learned that 7.2 % of webinar attendees were converted to purchasers. Deminar: A customer demonstration and seminar in one. Often utilized when referring to the combination of an online virtual demonstration of a product and webinar. Online Virtual Product Demonstration + Webinar (chance to participate live, ask questions) = Deminar
7 Return on Investment - ROI ROI Examples of Success, Web-Related: Example Continued: Excerpts below from Ben Goldstein, PandaDoc (link): Sales Pipeline: Specific sequence of actions that a sales rep needs to take in order to move a prospect from a new lead to a customer. Sales Funnel: Unlike a sales pipeline, which focuses on the set of actions taken by sellers, a sales funnel visually communicates the conversion rates of prospects through the pipeline stages. It s called a funnel because of its shape: wide at the top as prospects enter, then increasingly narrow as they are disqualified or decide not to buy. Microsoft Example Video Clip (4 Minutes)
8 Return on Investment Using YouTube Excerpts from: Forbes.com Article, AJ Agrawal (link): Video marketing is becoming a more powerful advertising tool every year. The internet is overcrowded with content options, and the attention span of the modern consumer is short. Good news is, a one-minute video is worth tens of thousands of words. Many marketers make the mistake of thinking that the only way to succeed with video marketing is by going viral. This is a very difficult goal to achieve, and one that few marketers ever manage. But that doesn t mean that video marketing isn t bringing major improvements to their ROI. In fact, video now generates three times as many monthly visitors to a website as plain text posts. Instead of developing something that appeals to many people, start brainstorming video content that appeals to a very specific niche (your audience). Creating highly targeted messaging based on their exact persona and interests will be much more valuable for driving sales than trying to appeal to everyone. Distribution is a big part of ensuring the success of any type of content, so you should make your video available on YouTube and share it widely on social media.
9 Return on Investment Using YouTube Excerpts from: Forbes.com Article, AJ Agrawal (link): But don t make the mistake of forgetting the point of the video drawing in qualified leads. Instead of relying on YouTube as the sole host of your video, create a dedicated landing page for it, because 60% of visitors will watch a video before reading text on the webpage. When people click on the link through social media, they ll be drawn to the landing page and encouraged to engage further with social CTAs, promotions of your blog or website, and other related material featured on the page. The real key to actually getting the most ROI for your video marketing efforts is by paying close attention to your key performance indicators (KPIs). To see just how much your different videos are contributing to your bottom line, track important video metrics like (KPIs): Time on landing page The percentage of viewers who watch the whole video The percentage of viewers who respond to your CTA If your videos are hosted on YouTube, you can make use of their helpful analytics, as well as track website behavior with Google Analytics.
10 Why would a business use YouTube? Given the huge number of companies that embrace YouTube videos, it should come as no surprise that there are a lot of different ways to use the site. Every company has its own unique goals for their YouTube marketing. Some companies use YouTube to generate brand awareness. Some use YouTube to promote a particular product or drive sales to their retail store or website. Others incorporate YouTube as part of their product or customer support mix, use videos for product training, or even use YouTube for recruiting and employee communications.
11 Using YouTube for Brand Awareness Brand Awareness: Large national companies and major advertisers often use YouTube to enhance awareness of their brands. Instead of focusing on individual products or services, these videos push the company s brand, often in the same fashion used in traditional television advertising. In fact, online videos are better at imparting brand awareness than are traditional TV ads. A Millward Brown study found that online viewing led to 82% brand awareness and 77% product recall, compared to just 54% brand awareness and 18% product recall for similar television ads. Experts believe this is because online viewers are more engaged than television viewers; the Web is a more interactive medium than the passive viewing inherent with television. Brand awareness videos are typically entertaining, using a soft-sell approach to ingrain the brand s name and image in the minds of the viewers.
12 Using YouTube for Product Advertising Product Advertising: If you can use YouTube to push an overall brand, you can use it to push individual products, too. This requires a more direct approach, although it s still important to make the video informative, educational, or entertaining. To promote the product, you want to show the product in your advertising. You can show the product in action or used as part of a demonstration or tutorial. Just make sure you include lots of close-up product shots and link back to your own website where more product information is available.
13 Using YouTube for Retail Promotion Retail Promotion: You can also use YouTube to promote a company s retail stores (brick and mortar locations versus websites). These videos can be general in nature (which gives the videos a long shelf life), or more specifically targeted to shorter-term promotions ( check out this weekend s specials! ). But a video that is nothing more than a store advertisement probably won t attract a lot of viewers. A better approach is to find a way to showcase the store without resorting to claims of 20% off and this weekend only specials. For example, you might want to record a short store tour or highlight individual departments or services within the store. You can even produce educational videos that demonstrate the products or services your store offers. Make the video informative, and you stand a better chance of grabbing eyeballs.
14 Using YouTube for Direct Sales Direct Sales: YouTube is a terrific channel for generating direct sales for products and services. All you have to do is show the product in action or provide a clip of the service in question, and then ask for the sale by directing the viewer to your own website. (CTA) One of the best ways to showcase a product is in an instructional video the online equivalent of an old-school infomercial.
15 Using YouTube for Product Support Product Support: Not all companies use YouTube to generate new business some companies do so to support existing customers. Consider some of the most common customer problems and questions, and produce one or more videos addressing those issues. If you can help your customers help themselves, you provide them with a useful services and reduce your company s support costs all with a free YouTube video. You can also embed your YouTube support video into your own website. It doesn t matter where customers view the video, YouTube or your site; what matters is that they get their problems solved at little or no expense to you.
16 Using YouTube for Internal Training Internal Training: Your company can also use YouTube for internal purposes. Take, for example, the issue of sales or product training. You have a new product to introduce and a sales force to train. How best to reach them? In the old days, you d fly salespeople from around the country to a central office and put on a day s worth of hands-on training. Doing so, however, is both time-consuming and expensive. Instead, consider using YouTube for your product training. Create a series of short training videos. Sales force personnel can watch the videos at their leisure, without losing valuable sales time trekking back to the office for training. You save money, your salespeople save time, and you create an archive of product information that anyone can access at any time.
17 Using YouTube for Employee Communications Employee Communications: You can use YouTube for all manner of company communications. Instead of holding a big company meeting just so that the big boss can give his yearly state of the company address, have him or her record the address and post it on a private channel on YouTube.
18 Using YouTube for Recruiting Recruiting: Finally, don t underestimate YouTube as a recruitment tool for new employees. If you have a company welcome video, post it on YouTube and make it public. Think of this as a PR exercise to attract new talent to your company, which means doing it up right it s as much a marketing project as it is something from the HR department. You can link to the video from all your recruiting materials, even from any traditional ads you place. Produce separate videos for individual departments, as well as to illustrate company values, employee benefits, facilities, and the like. An academic institution will usually produce student recruitment videos.
19 What type of content is best for your goals? What type of video should you produce for YouTube? You have a number of choices to make when determining what type of videos to produce for YouTube. It s not a one-size-fits-all situation; what works for one company might bomb completely for another. You re not limited to a single approach; many companies employ two or more different types of videos, each designed to achieve its own specific goal.
20 What type of content is best for your goals? Common Types of YouTube Videos: Repurposed Telvision Commercials This may be a losing strategy for most firms; YouTube viewers tend to expect something new and different than the same commercials they see on TV. Infomercials You create a video that purports to convey some type of information, but in reality exists to subtly plug your product or brand. Instructional Videos You create something truly useful for your target customer (how-to video), and then drive business by direct link from the instructional video. Product Presentations and Demonstrations You use the video medium to show customers a particular product, in the kind of detail you just can t do in print or on a web page.
21 What type of content is best for your goals? Common Types of YouTube Videos Continued: Real Estate Walk-Throughs Customer Testimonials Company Introductions Expert Presentations Executive Speeches Company Seminars and Presentations User or Employee Submissions Humorous Spots
22 What type of content is best for your goals? In-Class Activity: In groups of 2 or 3 locate a professional example of the type of YouTube video assigned to you. Make sure to review the definitions in the slide show first. In about 10 minutes: Tell the class what type of video it is, and share a portion of the video with the class. You may stay seated at your computers. Video Categories for the Activity: Brand Awareness, Product Advertising, Retail Promotion, Product Support, Recruiting (May be for school or business).
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