Video s Payday: PART 2: The Role Of Social Media In Today s $135BN Video Marketing Industry

Transcription

1 Video s Payday: PART 2: The Role Of Social Media In Today s $135BN Video Marketing Industry From Branding To Belonging From Conversion To Conversation Magisto VIDEO S PAYDAY: Part 2 1

2 Introduction: The maturation of social media and the cultural changes wrought by millennials have caused an explosion of video. Businesses know they need video content to succeed in social marketing, and they see their competitors using it, but many are still struggling to define what a video marketing strategy is. They re not sure where to start, how to scale or iterate within a budget, or even how to measure success. Despite these challenges, the growth of digital video doesn t seem to be slowing down, and innovative business leaders are developing solutions at a breakneck speed. The industry, sized at $135 billion, is nearly as big as the spend on digital and TV advertising combined, and 84 percent of businesses still say they plan to increase their spend this year. This study answers the questions of where and how this money is being spent, how success is measured, and what s working according to those measures. While there are still many questions, one thing is certain: the $135BN video marketing industry is only the tip of the iceberg. Part 1 of this series was primarily a sizing of the U.S. video marketing industry in 2017, which until now, had been hidden across departments and budget line items. In Part 2, we ask three key questions to break down that $135BN: A. What role did social media have in the radical rise of video? B. Where and how is the C. How are businesses getting $135BN being spent? through the challenges and succeeding with social video? Magisto VIDEO S PAYDAY: Part 2 2

3 Section 1: The Connection Between Social Media and Video As the influence of social media increasingly dictates cultural norms, traditional marketing channels are quickly becoming detached from the core of consumer conversation. Unlike traditional media, social media is a world designed for humans to expresses themselves, not businesses. In order to blend in, companies are ingeniously using social video to scale authenticity and speak as personas rather than faceless organizations. Companies are 50% more likely to distribute video via social media than paid advertising 80% 60% Companies also overwhelmingly cite social media as the best channel for video marketing ROI 30% Not surprisingly, earned and owned media are gaining exponential importance as marketers continue to use their websites and social platforms as the face of personification. Paid media, even for large corporations with readily available resources, is becoming a legacy tactic. Eighty-eight percent of companies with over 1,000 employees use social media for video distribution, while only half of businesses say they use paid advertising channels. 20% 0% Website Social Media Paid Advertising / Newsletters Mobile Apps Blog 20% 10% 0% Social Media Content Campaigns Lead Generation Product Marketing Sales CRM Magisto VIDEO S PAYDAY: Part 2 3

4 Scaling the Personification of Business Through Social Video A new economy has emerged in social media, in which attention is the currency and, as with any market, consumers expect something of value in return for their focus. The term Return on Attention (ROA) has gained increasing attention over the past year as marketers have started to realize that capturing attention alone is not the goal, but rather giving people a valuable experience. Real value drives and defines engagement in the attention economy. Customer testimonial videos, event recaps and branded storytelling videos (i.e., content marketing) allow businesses to contribute value as an individual might. Through these tactics, businesses of all sizes are humanizing their messaging and their companies, making them more relevant and engaging for the social era. Companies are using numerous types of videos to provide value to consumers 60% 20% Product / Services Customer Testimonials Educational Videos Event Recap Branded Storytelling Virtual Tours Professional Profile Entertainment Thought Leadership 0% Types of Videos Magisto VIDEO S PAYDAY: Part 2 4

5 Section 2: Modern Marketing Challenges & Solutions Too difficult to test and measure 15% Too expensive to distribute 8% In successful social video strategies, speed to market is the critical path The common assumption is that expense is the critical path to video adoption, and up until recently, that has largely been the truth. However, based on new social norms that favor authenticity and real-time communication, respondents indicate speed to market as the greatest pain point by far, in regards to social video. Too time consuming to create 47% Too complex to distribute 11% Too expensive to create 19% Frequency Despite the challenges of time, over half of companies surveyed still believe video is important enough to create content at least weekly, if not daily. 56% of businesses are creating video at least once a week 26% are doing so daily Daily 26% Weekly 30% Yearly 18% Quarterly 12% Monthly 14% Magisto VIDEO S PAYDAY: Part 2 5

6 Social Video: A One Stop Shop For Marketing Objectives Defining And Measuring Success Social video is becoming a one stop shop for achieving marketing objectives. The traditional line between brand awareness (typically reserved for TV) and customer acquisition (typically reserved for digital) is quickly becoming obliterated as new rules of engagement allow consumers to choose their own path at their own pace. 64% of marketers report brand awareness as their top objective for video, while 58% say customer acquisition 60% Historically, there were two dominant metrics for measuring success: brand recall for traditional media and CPA for acquisition marketing. Interestingly, marketers are now looking at engagement as the leading KPI of success in social video. Viewthrough rates, engagement and shares all indicate that the content they are creating is, in fact, cutting through the noise of the attention economy and resonating as part of the social narrative. Engagement is the metric that supports the broad goal of brand awareness, as well as ROI (and ROA) efficacy. 45% 35% 30% 25% Organic Social Engagement Length of Engagement Cost-Per-View Click-Through-Rate Sales Reach / Impressions Ad Recall 20% 0% Brand Awareness Customer Acquisition Product Marketing Lead Generation Customer Service Inbound Sales Outbound Sales CRM Consumer behavior also supports marketers focus on social engagement. According to a survey by BrightLocal, 88 percent of people watch product review videos before purchase and they trust these reviews as much as personal recommendations. Engaging product overviews, educational videos, authentic customer testimonials and even videos created by the consumers themselves comprise a growing library of trustworthy personal opinion and, more importantly, evergreen content. Magisto VIDEO S PAYDAY: Part 2 6

7 Section 3: Who s Leading The Charge? While Millennials Create The Social Video Landscape, Generation X is Charged with Mapping The New Topography Millennials, who prefer visuals over words, are undoubtedly driving the meteoric rise of video traffic which, is predicted to grow fourfold from 2016 to However, Gen X marketers are 250 percent more likely to be heads of marketing than any other generation and as such, they re tasked with leading the new go-to-market strategy and navigating the cultural changes wrought by millennials. 77 percent of Gen X marketers spend over three fourths of their marketing budget on video 9 out of 10 Gen X marketers plan to spend more budget on video than they did last year Three-fourths marketing budget on video 77% Magisto VIDEO S PAYDAY: Part 2 7

8 Mid-Sized Businesses: The Goldilocks Of Video Marketing Innovation Mid-sized businesses (those with employees between 500-1,000) are ahead of the pack in video marketing innovation. With the benefits of more resources than SMBs, but less bureaucracy than fortune 500 companies, they have the ability and the agility to act. Businesses with less than 100 employees make up 90% of the $135BN video marketing industry Per business, however, small businesses spend 5 to 10 times less on video marketing per year than larger businesses Less than 100 Employees $250,000 Less than 100 Employees Employees $200, Employees Employees Employees Less than 100 Employees 1,000 or More Employees $150,000 1,000 or More Employees $100,000 72% of mid-sized businesses create video either weekly or daily $50,000 $0 Average Video Marketing Spend/Year Magisto VIDEO S PAYDAY: Part 2 8

9 Regardless of Company Size, Video Creation is Becoming a Standard, In-House Program 80% Video used to be a monolithic set of creative assets with extremely long lead times and exorbitant pricing. Social video requires marketers to re-categorize video from a rigid asset class to standard day-today operating procedure. Not surprisingly, 64 percent of businesses create video in-house. 60% 76% of small businesses create video content in-house With technology advances and the current availability of resources, even small businesses with very few employees and a $10K marketing budget are able to create video content. 20% 0% In-House Partner Agent Videography Team Freelance Magisto VIDEO S PAYDAY: Part 2 9

10 Section 4: Implications for Marketing Budgets Video is Pulling Traditional Media and Digital Advertising Dollars into Social Media It s no surprise that half of U.S. businesses are reallocating traditional marketing budgets from TV, print and radio to fuel social video. What is surprising is that 37 percent of businesses also report cannibalizing their traditional digital marketing efforts to fund video. In short, marketing dollars follow consumer attention and video is the heart of the new attention economy. Two thirds of all companies spend more than 25% of their marketing budget on video marketing Where is the money coming from? Less than 25% More than 25% 60% 50% of companies are reallocating traditional media budgets to fund digital video 37% of companies are taking money from existing digital media budgets just to fund video Magisto VIDEO S PAYDAY: Part 2 10

11 Section 5: Conclusion Scaling Authenticity With Social Video There are many ways that businesses are successfully attacking the challenge of being seen within the growing melee of the social attention economy. Innovations in big data, attribution, personalization, media buying, content marketing and marketing technology are all contributing to new ways for businesses to go to market. The challenge, however, is not just finding your audience and being seen, but more importantly, spurring emotion. One of the most powerful ways for businesses to increase the signal-to-noise ratio is video marketing, which combines the emotional power of story with the efficacy of digital advertising. This requires businesses to re-imagine what video communication is, and to move from long lead times and highly scripted broadcast messaging to ad hoc, everyday social interaction. Businesses have to mass produce media that delivers real value in the form of entertainment, education or inspiration. They have to be authentic, relevant and continuously present. Social video is the central way for businesses to do just that. It represents an ROI positive, repeatable go-to-market strategy that meets the technical and social expectations of a new consumer narrative. Magisto VIDEO S PAYDAY: Part 2 11

12 Methodology: Magisto surveyed over 500 marketing decision makers in the U.S. at small, medium and large businesses from July to August Our research explores the entire digital video ecosystem, including video capturing, creation, hosting, distribution, analytics and staffing. Responses were random, voluntary and anonymous. The data reflected in this report represents only a small portion of the data collected in that survey. The first report reveals video marketing to be an astounding $135 billion industry in the U.S. and examines the scale of the industry and the drivers for growth. Report 1 can be found here. The key questions we considered in Part 2 are where and how marketers are spending that $135 billion. In Part 3, we ll explore how consumers are reacting to the new voice of business video.

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