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Why big companies invest in Video Marketing
You only need to be on the Internet for a few minutes to realize that video marketing is extremely popular. Whether a company is trying to use the latest cat video to get people to click on an advertisement or a product video is going viral, big companies everywhere are using video marketing to enhance their marketing reach and increase sales. But why do so many big companies use video marketing as part of their marketing programs? What value does video marketing offer that keeps big companies coming back for more?
A Huge Audience
Over 100 million people watch online videos each and every day. That number gains more value when you realize that it is not the same 100 million people each day.
Big companies love big numbers and 100 million potential viewers is a big number that big companies cannot ignore. The number of people accessing videos through mobile phones and tablets is growing at an astronomical rate so that 100 million people per day figure will probably rise over the coming years.
All About The Money
In recent surveys by several online firms, nine out of every 10 consumers said that a good online video influenced their buying decision. A 2013 report estimated that $263 billion in sales were done online. If 90 per cent of $263 billion in sales is being influenced by online video marketing, then big businesses are going to take the time to capitalize on that.
The one thing the study does not tell us is how many of those nine out of 10 buying decisions were positively influenced by video marketing. But that is why big companies hire professional marketing companies to do market research and map out consumer trends.
It Is Low Cost
Any big business that is interested in its public image is going to invest decent money in a good video. But after the video is made, the cost of distributing that video has to be taken into account. Television advertising is incredibly expensive, even if you are just trying to reach a regional audience. Big companies prefer to spend time building up a strong online video marketing audience and bypassing the costs of advertising on television.
A corporate video that goes viral could be seen by hundreds of thousands of people and the increased audience adds no extra cost to the company that produced the video. On the other hand, a big company could invest big money in running a television commercial and never know if it is being seen by anyone. Online video marketing offers the potential for low costs and high returns when it is done right.
No Creative Boundaries
With television, there are things that commercials are and are not allowed to say and do. There are also rules as to when certain types of commercials can run and what kinds of programs commercials work well with.
With online video marketing, there are no boundaries and there are no restrictions. While a company does not want to risk its reputation by putting out a video that is in bad taste, the lack of creative boundaries does allow companies to create videos that have the strong potential to go viral.
They Can Monetize Their Own Videos
When a company has a hit video on its hands, that video can generate revenue in several ways. Not only does the video help sell the product, but it can also be put on the Internet with advertising and generate advertising revenue. Once again, this is something that big companies can completely control and anytime a big company can cut out the television middleman, then that makes a big company very happy.
Video Marketing Is An Inexpensive Testing Ground
When a big company invests millions of dollars in a Super Bowl advertising spot, the pressure is amazing. If the commercial bombs, then someone is probably going to lose their job. But video marketing allows a big company the freedom to experiment with ideas and keep tweaking those ideas until they find something that works. In the long run, video marketing can save a company a tremendous amount of money and time.
Video Marketing Can Linger For Years
When a commercial runs, even a popular one, that run has to end at some point. The big company that financed the commercial is forced to retire it and move on to something else. Once again, this entire process creates a mountain of costs that are sometimes never recovered.
There is no shelf life with video marketing. A video will continue to be viewed and generate revenue as long as it is on the Internet. Some videos find second and third lives when they manage to go viral long after their initial run is over.
Sometimes Low Production Values Can Be Helpful
While most big companies would not make a habit of it, there can be those times when low budget online videos are extremely effective. For example, a big company could hold a contest asking its customers to send in videos telling the world why they love the company’s product. There are no production costs for the company, but the positive marketing effects could be tremendous.
Big companies use video marketing because it is a lower-cost way to deliver video that television and it has the potential to reach customers all over the world. Video marketing also removes the constraints that come with traditional television commercial advertising and that can sometimes be a significant benefit to a big company. For example, big companies that are not able to advertise on television can find a large audience online and use their corporate videos to generate revenue. The bottom line is that if big companies are using video marketing, then it is something that small businesses should be looking into right away.