Video Marketing and Advertising: Tactics, Measurement and Trends 2014
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1 Video Marketing and Advertising: Tactics, Measurement and Trends 2014
2 Video Marketing and Advertising: Tactics, Measurement and Trends 2014 Now that the various benefits of video marketing are widely known and acknowledged from improving presence on search engines to enhancing engagement B2B marketers have gone from dismissing video marketing as a B2C tactic to making ample room for it in their creative marketing budgets. Companies have their snazzy product videos and clever viral videos, but their visitors are not converting into customers. In this report we analyze the reasons for video marketing failure, map different video types to the buying cycle and, help you turn video from just a buzzword vehicle to a channel that is a source for constant revenue. This survey report is intended to familiarize and educate marketing leaders with the upcoming trends and practices with respect to video marketing and advertising and to provide them with actionable tips on making video marketing work for them. Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 01
3 Key Takeaways 50 % 77 % 78 % 83 % 84 % 94 % of marketers allocate 10 to 25% of their creative budget towards video marketing» tweet this «of marketers claimed that their customers prefer visually rich marketing material over static/text-based material» tweet this «of marketers engage in video marketing» tweet this «of marketers use video marketing for branding or to increase awareness around their brand» tweet this «of marketers reported an increasing demand for videos and other visually rich marketing content E.g. Infographics, Miscrosites, Banner Ads, etc» tweet this «of marketers believe that video marketing is an effective sales and marketing tactic» tweet this «Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 02
4 B2B Marketers Embracing Video in a Big Way Previously thought of as just another content type, video is now being recognized as a major marketing tactic. From branding to post-sales engagement, videos are now considered a necessity to advance customers in their purchasing journey, as reported by 78% of marketers who engage in some form of video marketing or the other. The primary reason for this is the increasing demand for visually rich and interactive material by customers, as reported by 84% of respondents. Marketers surveyed believe that videos are an ideal means to engage all stakeholders. With external stakeholders such as clients, videos are useful for customer briefings, sales pitches, and articulating thought leadership; with internal stakeholders such as employees, they have proven useful in communicating company vision, product focus, and differentiators and to ensure that everyone has a consistent understanding of the same. Marketers Engaging in Video Marketing 22% NO 78% YES Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 03
5 Video killed The Videos have taken a form more resonant to their customers than older forms of digital communication. 59 percent of senior executives prefer video over text and 77 percent of marketers report that their customers prefer visually rich marketing material over static or text-based material. This points to a shift in information consumption patterns of consumers with a strong preference for interactive and engaging content. Previously, marketers resorted to long, winding text manuals and brochures for spreading their brand s message; now they use concise, comprehensible product demos, presentations, and corporate videos. 66 percent of marketers surveyed uphold that video marketing is a highly effective sales and marketing tactic. This is mainly because video combines aspects of visual and audio, making for a more impactful presentation than pure static imagery or text. 19% 5% NO NOT SURE 29% 5% NO AGREE 76% YES 66% STRONGLY AGREE Marketers claiming that customers prefer visually rich marketing material over static or text-based material Marketers who believe Video marketing is an effective sales and marketing tactic Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 04
6 Mapping Videos to the Buying Cycle Corporate videos (77%), Product demos (71%) and webinars (69%) are the most popular video types used by B2B marketers in their marketing mix. However, this differs from one stage of the buying cycle to the other. Below is a chart that maps the top three video types (ranked based on usage) to the corresponding stage of the purchase cycle: Highest Second Highest Third Highest Awareness Consideration Intent to Purchase Purchase Satisfaction Engagement Repurchase Loyalty Advocacy Corporate Videos Chalk-talks/ Expert-Talks Viral Videos Testimonial Webinar Product Demo How-to Tutorial Vlogs Vine Presentation Interview On-Location/ At-Event Behind-the-Scenes/ Documentary Case Study User-Generated/ Crowd-Sourced Videos Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 05
7 As observed in the chart above, there is a stark contrast between the types of videos used to induce pre-purchase and post-purchase behavior and decisions. While corporate videos, viral videos, product demons and other branding videos are focused mostly on pre-purchase stage of the buyer s journey, presentations, vine videos, testimonials, how-to tutorials, etc. are targeted towards the post-sales stages. This is because the former is designed to appeal to prospects who have either not been exposed to the brand or are still seeking information on the company and its offerings. The top three types of videos to create brand awareness are corporate videos (92%), viral videos (69%) and on-location/at-event videos (57%). Once the prospect has discovered a brand and moves to the consideration phase, marketers use webinars (71%), testimonials (67%) and chalk-talks/expert-talks videos (64%) to showcase thought-leadership and brand expertise and propel them to the next stage. During the intent to purchase phase, prospects are provided more information on the brand s workings using product demos (88%), case studies (75%) and webinars (63%). When the prospect is making the purchase decision, marketers mostly use how-to-tutorials (41%), product demos (40%) and case studies (25%) to give prospects the final nudge in helping them make the purchase decision. The post-sales cycle involves using video types that will help re-affirm the customer s purchase decision and aim at converting the buyer into a returning customer and brand advocate. Video types such as testimonials (40%), how-totutorials (35%) and case studies (29%) are used by marketers to create a positive impression and reaffirm the purchase decision of the buyers. For promoting engagement and spark interactions with clients, marketers use webinars 79%), vlogs (67%), vine(67%), presentations (67%), and interview videos (67%). In order to encourage customers to repurchase solutions, 63% of marketers reported using videos such as behind the scenes/documentary to make the customers come back for more. This is followed by at-event videos (50%), case studies (50%) and how-totutorials (47%). To win customers loyalty, marketers use case studies (43%), user testimonials (30%), at-event videos (25%), documentaries (25%) and presentations (25%). To ensure that buyers become brand advocates and spread the brand s message on its behalf, marketers use good old case studies (43%), testimonials (35%) and documentaries (38%). Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 06
8 Video Production, Promotion and Distribution 63 percent of marketers indicated that production of videos is carried out in-house by their respective company s corporate marketing team. 37% of marketers outsource the production of videos to an agency. With respect to the promotion aspect of video marketing, 97% of marketers reported using the corporate website for promotion and distribution of videos. The most widely used video marketing tactic is embedding videos at multiple places from the website, to the corporate blog, to social video sharing sites to enhance discover ability and share ability. YouTube emerged as the most popular video sharing site, used by 92% of the marketers surveyed. In comparison, video sharing site Vimeo failed to attract B2B marketers (15% of reported participants) as only a mere 15% reported using it as a medium for sharing videos. Twitter is the social network most used by B2B marketers (58%) for distributing videos, followed by LinkedIn (54%) and Facebook (54%). Channels predominantly used by marketers for promotion and distribution of Videos 96% 92% 54% 58% 39% 54% 39% 31% 15% 12% 0% 0% 8% Website YouTube Vimeo Microsite SlideShare LinkedIn Twitter Google+ Facebook StumbleUpon Blog Vine Others (please specify) Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 07
9 Marketing Objectives and Tracking Metrics The primary objective cited by B2B Marketers for video marketing is creation of brand awareness, as reported by 83% of respondents. This is followed by triggering customer engagement (77%) and building credibility and trust (71%). The leading metrics for measurement of video marketing correlate directly with the objectives set for the exercise as demonstrated by 85% of the survey respondents, who reported using number of video views as the top most metric used to analyze branding campaigns performance. Views was followed by click rates and Google Analytics event tracking (registrations) as reported by 62% of the survey respondents. Marketing Objectives 83% 63% 63% 57% 71% 77% 63% 51% 46% 46% 0% Increase brand awareness Accelerate lead generation Establish oneself as a thought leader Build competitive advantage Build credibility and trust Trigger customer engagement Influence purchase Enhance customer adoption and usage of products/services Convey unique product positioning Define product use case Others (please specify) Tracking Metrics 85% 62% 62% 65% 39% 35% 23% 12% 0% Event tracking using Google Analytics Tagged links on channels of distribution Click rates Number of video views Social Media Shares and Comments Leads generated Video ratings Rate of increase or decrease in subscribe base Others (Please specify) Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 08
10 Challenges Preventing Video Marketing Success Although a majority surveyed firmly believe in the importance of using videos as a marketing tactic, all marketers surveyed claimed to be facing major challenges that prevented them from unleashing the potential of videos. Difficulty in measuring ROI was cited by 73% of survey participants as the biggest challenge faced in video marketing. Measurement of video marketing is still at a very nascent stage, with marketers usually relying on metrics measuring each video campaign s performance individually with very little cross-channel integration. 23 percent of marketers do not engage in video marketing, even though 89% of them believe that video marketing is an effective sales and marketing tactic. Most commonly cited challenges preventing these marketers from carrying out video marketing are dwindling budgets (44%) and lack of in-house expertise in video production (44%). 73% 44% 44% 22% 8% Difficulty in measurement of ROI Lack of in-house expertise in video scripting and production Lack of budgets for video production and distribution Difficult to convert viewers Others (please specify) Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 09
11 Increasing Budget Apportionment for Video Marketing A majority of the marketers surveyed reported allocating10 to 25% of their content marketing budget towards video marketing. Only 8% of marketers indicated not altering their investment towards video marketing in the year Content marketing/creative budget currently allotted to Video marketing <10% 10-25% 40% 50% 25-50% >50% 5% 5% Marketers who will increase their investment in Video marketing in the year % YES 40% NOT SURE 8% NO Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 10
12 Mobile Video Marketing With consumers getting used to accessing information from anywhere at any point of time, it is crucial that marketers optimize their video experience for mobile consumption. An overwhelming 96% of marketers either consider mobile optimization of videos a current priority or plan to carry out mobile optimization in the near future. The most commonly used tactics include customizing the text and screen for smallerscreen devices, as cited by 54% of marketers surveyed. 50 percent of marketers are also using the YouTube mobile application to cater to the increasing mobile audience. Marketers who believe mobile optimization of Videos is a priority 4% NO 31% AGREE 65% YES Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 11
13 Video Advertising Largely Untapped Around 80% of the survey respondents reported zero investment or utilization of YouTube advertising. 52 percent of marketers currently use Display Ads that are similar to the regular Google Display Ads available as standard banner ads and rich media 300x250 ads that appears to the right of the feature video and above the video suggestions list. Other advertising formats such as overlay in-video ads and in-stream ads are still largely under-utilized by marketers. 52% 52% 14% 5% 5% Display Ads: These are similar to the regular Google Display Ads, available as standard banner ads and rich media 300x250 ads that appears to the right of the feature video an adove the video suggestions list Overlay In-video Ads: Transparent overlay ads that appear on the lower portion of your video. TrueView In-Stream Ads: Skippable video ads that are inserted before, during or after the main video Non-skippable In-Stream Ads: Video ads that can be inseart before duing, or after the main video and must be watched before the video seleted can be viewed Others (Please Specify) Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 12
14 How to Make Video Marketing Work for you - Recommendations Based off the gathered survey data and observations from video marketing trends, we ve provided a list of recommendations for companies looking to get the most out of video production and video marketing. Use corporate videos, product demos and webinars to advance your buyers in the pre-purchase stage of the buying cycle Use presentations, case studies, testimonials and documentaries during the postsales stages to convert your buyers into brand advocates Use social networking sites to promote your videos most importantly YouTube and Twitter If you aren t already optimizing the user-experience of your videos for mobile, then do it right away. The first step is to optimize the videos for smaller screens and mobile devices With the rising popularity of video, consider investing in YouTube advertising formats since it is a fairly underutilized form of paid media Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 13
15 Video: Not Just Another Content Asset In 2013, video found its place as the sixth most popular content marketing tactic, as 70% of marketers reported using some form of online video as a part of their marketing mix. Come 2014, video is no longer just another content type; it is the media form of choice for marketers, helping them advance their customers through various stages of the buying journey. About the Analysts Nick Pinkerton Video Services Manager Nick initiates and oversees each video project, helping clients define and realize their messaging and visual expectations. He assists the video production team by writing scripts, drawing up visual concepts, and giving audio direction occasionally lending his voice and music production skills. Apart from videos, he specializes in messaging, copywriting, and design for digital media, interactive applications, and product marketing collateral. Pardeep Singh Video Services Asst. Manager With his strong visualization skills, deep understanding of content paradigm & ability to create and envision highly engaging content stimuli, Pardeep helps client realize their branding/marketing goals. His expertise is derived from the fact that in an ever-evolving world of information and shortened content lifecycle, it becomes imperative to add value to the created content archetypes which further augments longevity and boosts impact parameter. As a compulsive innovator, he constantly tries to come up with new and retentive mechanism of content layouts; be it videos, infographics or interactive demos. Regalix Research Video Marketing and Advertising: Tactics, Measurement and Trends 2014 / 15
16 About Regalix Research Headquartered in Silicon Valley, we help the CMO organization leverage emerging digital practices for creating marketing leverage as they bring new products and innovation to market. Regalix Research helps marketers through research-based insights, consulting and peer-to-peer programs that guide marketing strategy development and execution. Our focus is helping Technology companies leverage innovation and best practices to create real differentiation. Our analysts are practitioners with a successful track record of delivering real marketing results for both leading Fortune 500 companies as well as venture backed firms. Regalix is an award-winning Global Innovation company that leverages technology and marketing to help companies grow. We create successful ventures with our clients through co-innovation and idea-driven frameworks that inspire companies to think different. We bring ideas to life by envisioning new companies, developing brands, engineering products, and designing technology platforms. Founded in 1998, Regalix is based in Palo Alto. Our Silicon Valley setting has enabled us to stay ahead of emerging trends in digital technology and marketing. For over a decade, we have provided complete marketing services Social, Mobile, Content, Multi-channel Campaigns, Technology Development, and Analytics to companies such as CA Technologies, Citi, Apple, ebay, Cisco, VMWare, NetApp, Cypress, LSI, Keynote, and MetricStream. For more information To find out how Regalix Research can help you, please contact our office, or visit us at Regalix Research 1121 San Antonio Road, Suite # B200 Palo Alto, CA Phone: marketing@regalix-inc.com
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