Lights, Camera, Call to Action - Trends in Video Marketing
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Lights, Camera, Call to Action - Trends in Video Marketing

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Lights, Camera, Call to Action - Trends in Video Marketing

Lights, Camera, Call to Action - Trends in Video Marketing

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Lights, Camera, Call to Action - Trends in Video Marketing Lights, Camera, Call to Action - Trends in Video Marketing Document Transcript

  • September 2012 Lights, Camera, Call-to-Action: Trends in Video MarketingThe media theorist Marshall McLuhan famously noted, “the medium is the Research Briefmessage.” He meant that new forms of media have their own set of rules, Aberdeen’s Research Briefsand that content is ultimately developed that takes advantage of these rules. provide a detailed explorationMcLuhan’s maxim still holds true today as marketers come to terms with of a key finding from a primarythe powerful medium of video to engage with buyers through digital research study, including keychannels. Between May and July 2012, Aberdeen surveyed over 100 performance indicators, Best-marketing and sales professionals about the use of Rich Media in external in-Class insight, and vendorprospect and customer communications, including video. We found that insight.Best-in-Class companies are more likely to use video in their content-basedmarketing efforts. This research brief considers the best practices thesecompanies are adopting to get their message heard in Technicolor.Business Context: Of Medium and MessageThe challenge to be heard above the noise is in many ways the essence of Research Definition: Richpromotional marketing. Today’s competitive markets and multitude of Media for Sales and Marketingchannels offer no refuge, and as seen in Figure 1, difficulty in differentiatingin a “noisy” market is the top-most cited pressure by study respondents. Rich media is the use of visual,The other top pressures are in many ways typical marketing and sales audio, video, and interactive communications mediums,concerns; budgetary pressure (i.e. the need to do more with less), lead including video, audio, onlineconversion, and market segmentation. Adoption of video-based marketing chat, web meetings and screencan serve to address many, if not all, of these pressures in various ways. sharing, and web events.Figure 1: Top Pressures driving adoption of Rich Media in salesand Marketing Competitive “noise” in our target market; 54% difficult to differentiate our solution Marketing / sales budgets 38% stretched too thinly We are not effective enough 37% in converting leads to sales All Respondents Not effective enough in 30% identifying the best prospects 0% 20% 40% 60% Percentage of Respondents, n = 110 Source: Aberdeen Group, July 2012This document is the result of primary research performed by Aberdeen Group. Aberdeen Groups methodologies provide for objective fact-based research andrepresent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc.and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.
  • Lights, Camera, Call-to-Action: Trends in Video-based MarketingPage 2Of course, video has been used in marketing since the earliest days of TV Defining the Rich Media forand its effectiveness as a means of broadcast communications is self-evident. Sales and Marketing Best-in-What’s changed now is the accessibility of video, both for creators and Classconsumers. Today, many of us carry a high-definition video camera around Aberdeen used four keyin our pocket at all times in the form of a smartphone. Sophisticated, pro- performance criteria toor near pro-grade camera equipment and editing software is now relatively distinguish the Best-in-Classcheap and easy to use; in other words it’s never been easier to generate (top 20% of aggregatevideo of respectable visual quality. In the meantime, among online performers) from the Industryconsumers, watching video content on computers has become just as Average (middle 50%) andcommon as watching video on television, over half of global online Laggard (bottom 30%)consumers (56%) watch that video content on a mobile device at least once organizations. The metricsa month.1 As high-speed mobile internet access becomes ubiquitous, used to define the Best-in-consumers can practically create and watch video anywhere, anytime. Class among these firms are: √ 89% customer retentionThe accessibility of video opens new possibilities for marketing to address rate, compared with 62%the key pressures noted above by cutting through the noise, differentiating and 21% among Industry(sometimes by the very use of video), and generating marketing Average and Laggard firms.conversions. √ 28.4% year-over-year increase in total company revenue, vs. 7.4% forVideo-based Marketing Drives Conversions Industry AverageBest-in-Class companies (see sidebar for definition of the Rich Media for companies and a 1.4%Sales and Marketing Best-in-Class) are 38% more likely than all other decline among Laggards.companies to use video in their external communications (55% vs. 40%). √ 11.8% year-over-yearMarketing’s contribution to sales-forecasted pipeline for Best-in-Class increase in Marketing’scompanies was over twice that of all other companies (40% vs. 17%) and contribution to Sales-customer retention for the Best-in-Class was 89% compared with 48% for forecasted pipeline;all others. Additionally (and tellingly), Best-in-Class companies achieved Industry Average andtwice the website conversion rate of all other companies (4% vs. 2%). Laggard companies reported a 2.3% increase and a 0.1% decline, respectively. √ The average sales cycle was shorted by the Best-in- Class by 7.4%, and by Industry Average firms by 0.2%; Laggards report an average lengthening of the sales cycle of 6.2%.1 The Nielsen Global Survey of Multi-Screen Media Usage;http://blog.nielsen.com/nielsenwire/global/global-report-multi-screen-media-usage/© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897
  • Lights, Camera, Call-to-Action: Trends in Video-based MarketingPage 3Figure 2: Video-based Marketing Adoption Rates Sector Definition: Video 60% Best-in- Marketing 55% Percentage of Respondents Class Video-based marketing is the use of pre-recorded video, 50% All Others animations, or presentations with audio that are used for external prospect and customer 40% communications. Videos can be 40% used on third party sites, like video sharing sites and social networks, as part of the external 30% web experience, or shared directly with prospects and customers. 20% Use video-based medium for external communications n = 110 Source: Aberdeen Group, July 2012While marketing awareness is the most prevalent use case for video-basedmarketing, Best-in-Class companies are not only more likely to use video,they’re increasingly more likely to utilize video throughout the buyer’sjourney from awareness, to consideration (i.e. mid-funnel), through to post-sales.For example, 60% of Best-in-Class companies are using video as a means ofdriving marketing conversion, either by gating the video content itself, orusing video together with a call-to-action, compared with 48% of othercompanies. Video is less often used during the active sales cycle when one-to-one rather than one-to-many conversations are the rule, but here againBest-in-Class companies are more likely to utilize video during the salescycle. For example, video can be used to either start the conversation witha prospect (i.e. secure initial call or meeting), or to increase prospect /customer intimacy via personalized videos recorded with a webcam. Thepost sales use case is also compelling, with companies using video to provideinstructional support. Several hardware providers are shipping equipmentwith QR codes that launch how-to and other instructional videos whenscanned with a smartphone; a video “Read Me” if you will.© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897
  • Lights, Camera, Call-to-Action: Trends in Video-based MarketingPage 4Figure 3: Video Throughout the Buyer Journey Marketing 67% Awareness 55% Marketing 60% Conversion 48% Marketing 53% Nurturing 36% 47% Sales Qualified 30% 33% Sales Closing Best-in-Class 12% All Others 33% Post Sales 18% 0% 25% 50% 75% Percentage of Respondents, n = 110 Source: Aberdeen Group, July 2012Horses for CoursesAlong with the mix of uses for video comes a mix of capture andproduction approaches. Figure 4 below show the adoption rate of variousmodes of video capture and creation. The most popular mode is screencapture with audio, as this requires little to no additional hardware beyonda typical laptop and easy-to-use, often free software. However, the Best-in-Class are more likely to utilize professional-grade production (both in-houseand outsourced). The important thing to note is that these modes aren’tmutually exclusive: a company may use professional resources to produce acorporate or product introduction video, or video for use at an event orconference, while using screen capture to share demos or shortpresentations with prospects and customers.© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897
  • Lights, Camera, Call-to-Action: Trends in Video-based MarketingPage 5Figure 4: Horses for Sources – Pro-grade and DIY VideoProduction Both in Use 38% Screen capture with audio Video for Marketing Fast Fact 42% √ The average length of a Professional-grade 38% corporate video is 3.5 production (in-house) minutes 26% √ Best-in-Class companies Personal-grade equipment 29% are 50% more likely than all and production (camcorder, etc.) 35% others to host video on their web site (81% vs. 53%) Professional-grade 25% production (outsourced) 22% Best in Class 25% All Others Webcam 16% 0% 10% 20% 30% 40% 50% Percentage of Respondents, n = 110 Source: Aberdeen Group, July 2012Best-in-Class Video Marketing CapabilitiesVideo comes with some of its own rules, while adhering to some of the ‘old’rules as well. Best-in-Class companies deploy a number of video-basedmarketing capabilities at a higher rate than other companies.Shoot Once, Show EverywhereKeeping in mind that marketing awareness is the number one use case forvideo, marketers need to be able to get their videos where they can beviewed and shared, namely video sharing sites and social networks, includingof course YouTube and Facebook. By a 91% margin as seen in Figure 5,Best-in-Class companies are more likely to have the ability upload videos tothese sites without additional transcoding / format conversion. But as notedabove, Best-in-Class companies are more likely to use video for more thanjust awareness; it’s a vehicle for conversion, prospect engagement, andcustomer intimacy. As such, 60% of the Best-in-Class have the ability toselect and distribute video assets on both public and private channels,compared with 38% of all companies.Video is also mobile. It’s now commonplace to access everything from shortclips to entire movies on a smartphone or tablet. Call it the last mile ofdeliverability; Best-in-Class companies are 33% more likely than all others toensure delivery across multiple hardware platforms, and mobile and socialnetworks (53% vs. 40%). As a marketer, you simply don’t know what deviceyour buyer will be using to access your content; Best-in-Class companies© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897
  • Lights, Camera, Call-to-Action: Trends in Video-based MarketingPage 6are less likely to take the risk that they won’t be able to see what you’reshowing them.Figure 5: Shoot once, distribute anywhere 70% 67% Best in Class All Others Percentage of Respondents 60% 60% 53% 50% 40% 40% 38% 35% 30% 20% Ability to upload Ability to select Cross-device delivery / to video sharing and distribute distribution / syndication sites without video assets to multiple hardware additional transcoding on both public and platforms, mobile, (i.e. “one-click” posting private channels and social networks to social networks) n = 110 Source: Aberdeen Group, July 2012There are also significant differences between Best-in-Class and othercompanies when it comes to the video-based marketing experience. Severalcapabilities shown in Figure 6 suggest the importance of interactivity. Fiftypercent (50%) of Best-in-Class companies have the ability to make videocontent interactive and 47% are incorporating ‘click-to-action’ links withinthe video (i.e. hyperlinks placed within the video content), compared with33% and 27% of all other companies, respectively. But regardless of whethercompanies are using interactive video or embedded links, they should bethinking about what they want the viewer (i.e. the buyer) to do next. Inother words they need to think in terms of call-to-action.© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897
  • Lights, Camera, Call-to-Action: Trends in Video-based MarketingPage 7Figure 6: Lights, camera, call-to-action: Content rules still apply 50% 50% 47% Best in Class Percentage of Respondents All Others 40% 33% 33% 30% 27% 25% 21% 20% 15% 10% Ability to make Integrated click-to- QR codes used to Ability to auto- video content action links launch videos generate interactive embedded in video recommendations for next action or content for viewers n = 110 Source: Aberdeen Group, July 2012Performance ManagementBest-in-Class companies are more than twice as likely as all others tocapture user-level utilization information about video assets, such as opens,length of view, and next actions (60% vs. 29%). This capability cansignificantly boost the value of video as a marketing asset by serving as aproxy for engagement and interest. This data can be incorporated into leadscoring or prioritization within the marketing automation or CRM system.This is also consistent with broader trends we see in performancemanagement of content-based marketing; 67% of Best-in-Class companiessay their rich media deployments provide extensive visibility into contentengagement and 58% track the performance of individual rich media assetscompared with 37% and 35% of all other companies, respectively.TechnologyAberdeen’s study did not consider the equipment and software used tocapture and edit video content, focusing instead on management of videofrom a marketing and sales perspective. In this area Best-in-Class companiesare five and a half times more likely than all others to use an enterprisevideo management platform as seen in Figure 7 below. Such platformsautomate many of the capabilities discussed above. While manyorganizations are leveraging traditional enterprise content management(ECM) systems to manage video, enterprise video management platformshave emerged to address the unique requirements and opportunitiesassociated with video content management. They are particularly effective atseveral stages of video lifecycle: • Distribution and management. As noted above, video introduces several unique distribution requirements, including the© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897
  • Lights, Camera, Call-to-Action: Trends in Video-based MarketingPage 8 need to distribute assets on third party channels (i.e. social). Video also introduces unique content search and access challenges. Search metadata must be carefully managed to ensure findabillity and search engine optimization. • Reporting and analytics. Video also introduces unique reporting and analytics requirements. Within the enterprise, the ability to Demographics track the percentage of individuals viewing videos to completion is Of the 110 responding often critical in learning applications for compliance purposes. As organizations, demographics noted above, this same capability gives marketing and sales valuable include the following: insight about viewer engagement that can be used to score and / or • Job title: Manager (26%); prioritize leads. Senior Management (23%); EVP / SVP / VP (18%);Figure 7: Enterprise Video Management Platforms Meet Unique Director (12%); GeneralContent Management Requirements Manager / Managing Director / Principal (7%); Other (14%) 80% 73% Percentage of Respondents • Department / function: Best-in-Class Marketing (49%); Business 60% Development / Sales (27%); All Others Corporate Management 40% (7%); Other (17%) • Segment: Software (27%); IT 20% Consulting / Services (18%); 13% Media / Marketing Services (14%); Financial Services / 0% Insurance (7%); Industrials Enterprise video (7%); Computer / Telecom management platform Equipment & Services (5%); n = 110 Other (22%) Source: Aberdeen Group, July 2012 • Geography: Americas (80%); APAC region (8%); andSummary and Recommendations EMEA (11%)Every marketer knows how difficult it can be to rise above the noise, evenwith the most well-developed messaging and creative. Your buyer is • Company size: Largeinundated with information and offers, the majority of which never get enterprises (annual revenuesviewed. That’s why so many Best-in-Class marketers are incorporating above US $1 billion)- 11%;video into their content-based marketing repertoire. midsize enterprises (annual revenues between $50Video presents new rules in terms of content development. Firms should million and $1 billion)- 21%;think more about the story with video and keep content concise; theaverage length of a corporate video is 3.5 minutes. Marketers should also and small businesses (annualalign the means of video capture with the use case. Sometimes time-to- revenues of $50 million ordeliver trumps production value, or as the saying goes, perfect can be the less)- 70%enemy of good. For example, if you’re using video to capture the buzz atyour customer event or trade show, desktop video editing may prove to be© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897
  • Lights, Camera, Call-to-Action: Trends in Video-based MarketingPage 9“good enough” to include the video in your daily wrap up blog post. Inother cases, a professional-grade video is more appropriate, such as when itwill be used on the web site or at marketing events.When it comes to use cases, Aberdeen’s data shows that videos go beyondawareness to drive marketing conversions through the funnel, forengagement during the sales cycle, and in post-sales customer engagementand support.But some (relatively) old rules of content-based marketing still apply. Videosused in the marketing funnel should include a call to action or next step,either implicitly or explicitly – keep the end in mind. Marketers should alsoestablish practices to track the utilization and performance of video assets(as they should do with other marketing assets). Not only is this key tounderstanding what content is working and which is not, but it can be usedto gain insight into buyer engagement.For more information on this or other research topics, please visitwww.aberdeen.com. Related Research Marketing Lead Management: From the Revenue Performance Management Top of the Funnel to the Top Line; July Demystified; June 2012 2012 B2B Social Media Marketing: Are We Web Experience Management: From There Yet?; March 2012 Content to Customer; June 2012 Sales and Marketing Alignment: The New Power Couple; December 2011 Author: Trip Kucera, Sr. Research Analyst, Marketing Effectiveness (trip.kucera@aberdeen.com) LinkedIn @TripKuceraFor more than two decades, Aberdeens research has been helping corporations worldwide become Best-in-Class.Having benchmarked the performance of more than 644,000 companies, Aberdeen is uniquely positioned to provideorganizations with the facts that matter — the facts that enable companies to get ahead and drive results. Thats whyour research is relied on by more than 2.5 million readers in over 40 countries, 90% of the Fortune 1,000, and 93% ofthe Technology 500.As a Harte-Hanks Company, Aberdeen’s research provides insight and analysis to the Harte-Hanks community oflocal, regional, national and international marketing executives. Combined, we help our customers leverage the powerof insight to deliver innovative multichannel marketing programs that drive business-changing results. For additionalinformation, visit Aberdeen http://www.aberdeen.com or call (617) 854-5200, or to learn more about Harte-Hanks, call(800) 456-9748 or go to http://www.harte-hanks.com.This document is the result of primary research performed by Aberdeen Group. Aberdeen Groups methodologiesprovide for objective fact-based research and represent the best analysis available at the time of publication. Unlessotherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not bereproduced, distributed, archived, or transmitted in any form or by any means without prior written consent byAberdeen Group, Inc. (2011a)© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897