July 24, 2009

The Best Practices In Online Video
Across Industries
by Bobby Tulsiani
for Consumer Product Strategy Profes...
For Consumer Product Strategy Professionals


             July 24, 2009
             The Best Practices In Online Video A...
2   The Best Practices In Online Video Across Industries
    For Consumer Product Strategy Professionals




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Forrester Best Practices In Online Video Across Industries

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Forrester Best Practices In Online Video Across Industries

  1. 1. July 24, 2009 The Best Practices In Online Video Across Industries by Bobby Tulsiani for Consumer Product Strategy Professionals Making Leaders Successful Every Day
  2. 2. For Consumer Product Strategy Professionals July 24, 2009 The Best Practices In Online Video Across Industries This is the second document in the “Video Strategy” series. by Bobby Tulsiani with mark mulligan and Erik Hood ExECuT I V E S u m mA ry Today, 71% of the US online audience watches video on the Internet, and the number of streams consumed should more than double by 2013. An explosion of video content from users, professional studios, and marketers is driving this growth. In this second report in our video strategy series, Forrester has identified the best and worst practices in online video across industries. TABl E O F CO n TE nTS n OT E S & rE S O u rCE S 2 Online Video Is Being Used Across Industries Forrester surveyed a sample of Web sites from 6 The Worst Practices In Online Video across industries to determine the best and worst practices from each. 7 A Checklist For Implementing Online Video rECOmmEndATIOnS Related Research Documents 9 Maximize ROI For Your Online Video Efforts “Five rules To drive Video Traffic” march 9, 2009 “monetizing Video In Social networks” February 5, 2009 © 2009, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email clientsupport@forrester.com. For additional information, go to www.forrester.com.
  3. 3. 2 The Best Practices In Online Video Across Industries For Consumer Product Strategy Professionals OnlInE VIDEO IS BEInG USED ACROSS InDUSTRIES Online video is no longer the exclusive domain of user-generated content and TV sites. From financial services to government, all industries are incorporating video into their Web experiences. While the original business case for online video in the media industry focused on advertising revenues, these latest industries are employing video on their Web sites to accomplish a number of different business goals: · Communication. Video represents the most powerful medium for communicating a message to constituents and consumers. Government officials and CEOs alike have used online video to quickly get a message in front of audiences. President Obama used video messages throughout his 2008 campaign and continues to employ them in the White House to communicate policy decisions (see Figure 1). · Sales. Like images, video can help lower barriers to purchasing online. Video in sales environments can range from a simple clip highlighting different views of a product to a complex, original feature that demonstrates the benefits of the product. For example, InterContinental Hotels features video concierge tours on its hotel Web sites (see Figure 2). · Lead generation. Items that are less likely to lead to online transactions, such as cars or financial service packages, can use video for lead generation. Merrill Lynch has a series of customer testimonial videos about working with financial advisors on topics such as retirement and estate planning (see Figure 3). · Customer service. Organizations can look to the cost side as well when employing online video. Several industry categories, such as consumer electronics and computer hardware/software, can use online video as a self-service customer channel. For example, Dell has created an entire video portal that offers “tech tips” videos for the consumer, small business, and IT professional segments (see Figure 4). July 24, 2009 © 2009, Forrester research, Inc. reproduction Prohibited
  4. 4. The Best Practices In Online Video Across Industries 3 For Consumer Product Strategy Professionals Figure 1 President Obama uses Video To Communicate Policy decisions Source: Organizing for America Web site 53772 Source: Forrester Research, Inc. © 2009, Forrester research, Inc. reproduction Prohibited July 24, 2009
  5. 5. 4 The Best Practices In Online Video Across Industries For Consumer Product Strategy Professionals Figure 2 InterContinental Hotels drives reservations With Video Source: InterContinental Hotels Group Web site 53772 Source: Forrester Research, Inc. July 24, 2009 © 2009, Forrester research, Inc. reproduction Prohibited
  6. 6. The Best Practices In Online Video Across Industries 5 For Consumer Product Strategy Professionals Figure 3 merrill lynch uses Customer Testimonial Videos For Financial Products Source: Merrill Lynch Web site 53772 Source: Forrester Research, Inc. © 2009, Forrester research, Inc. reproduction Prohibited July 24, 2009
  7. 7. 6 The Best Practices In Online Video Across Industries For Consumer Product Strategy Professionals Figure 4 dell uses Video For Customer Self-Service Source: Dell Web site 53772 Source: Forrester Research, Inc. ThE WORST PRACTICES In OnlInE VIDEO Business goals for online video are only half the story. Far too often, organizations create video experiences that are isolated, obtrusive, and barricaded. Companies and organizations looking to use online video must avoid the following pitfalls: · Isolated experiences. Too often, online video is isolated in a Web site’s “video” section or placed in an in an entirely new and separate “.tv” domain. Rather than sending users off to a disconnected experience, organizations should seek to integrate video into the natural path of the consumer. Just like images, video should be placed contextually alongside related content and text to provide a full multimedia experience. · Obtrusive experiences. Users will reject video experiences that automatically start playing (particularly with sound) or that launch pop-up players that interfere with the user’s expected navigation mode. Even in circumstances where a pop-up player or auto-play may be appropriate, firms should include messaging that alerts the user to the pop-up and provide volume controls. July 24, 2009 © 2009, Forrester research, Inc. reproduction Prohibited
  8. 8. The Best Practices In Online Video Across Industries 7 For Consumer Product Strategy Professionals · Barricaded experiences. Far too many Web sites construct barriers that require users to download new software, register, or sign in before viewing a video. While users may accept such experiences for premium entertainment, such as TV shows and movies, auto manufacturers should not expect users to register just to view a car commercial. A ChECklIST FOR IMPlEMEnTInG OnlInE VIDEO Forrester has identified some of the best practices in online video and created a feature checklist for online video implementations (see Figure 5). The features and tactics largely fall into one of three categories that help empower users when watching online video: · Enhancing the ease of playback. A number of best practices — such as embedded players and streaming video — center on ensuring that the user has a simple and frictionless playback experience. Those responsible for implementing online video must not only move beyond the obtrusive experiences mentioned above but must also strive to develop even simpler playback experiences. For example, several video solutions start the video playback at a lower resolution to initiate playback faster and then ramp up the image quality in a process that the user barely notices. · Highlighting the information being presented. Removing the obscurity that is present in many video experiences is key to earning user trust and higher clickthrough rates for video. Companies should include basic information like a thumbnail preview and the total running time for every online video. The White House has started to use a video icon to show users that video is included in the provided link (see Figure 6). · Providing control. Unlike the TV viewing environment, online video offers an interactive experience where users demand control. It is critical to provide users with basic control of the video, such as fast-forwarding or rewinding it, as well as allowing them to control more advanced options, such as the size of playback and sharing the video with friends. © 2009, Forrester research, Inc. reproduction Prohibited July 24, 2009
  9. 9. 8 The Best Practices In Online Video Across Industries For Consumer Product Strategy Professionals Figure 5 A Best-Practice Checklist For Online Video Features Ease of playback Player embedded into page Context around video (text, images, related videos, etc.) Streaming video (no file or codec required) One click to play (no sign-in or registration required) Video information presented Icons indicating that the link contains video Total duration of the video A thumbnail previewing the video content Buffering message indicating that the video is loading Control provided Control of progress bar to skip ahead or rewind Player controls (volume, play, pause, etc.) Better image-quality controls (full screen, etc.) Sharing controls (email, URL, social media, etc.) 53772 Source: Forrester Research, Inc. July 24, 2009 © 2009, Forrester research, Inc. reproduction Prohibited
  10. 10. The Best Practices In Online Video Across Industries 9 For Consumer Product Strategy Professionals Figure 6 WhiteHouse.gov uses An Icon To Indicate That Video Is Included The video icon clearly shows users that there is a video that accompanies the article. Source: The White House Web site 53772 Source: Forrester Research, Inc. r E C O m m E n d AT I O n S MAxIMIzE ROI FOR YOUR OnlInE VIDEO EFFORTS While the hosting and streaming costs for online video continue to drop, adding video to a Web site can still be a relatively expensive proposition. To ensure you maximize your return on investment (rOI) for your online video efforts, we suggest that you: · list three use cases that video addresses. Before adding videos to accomplish any of the business goals mentioned above, you should be able to list at least three use cases that video is helping to address. For example, in the case of our hotel concierge video, online video helps because customers want to know: 1) what the hotel looks like; 2) what there is to do near the hotel; and 3) what the staff at the hotel is like. This planning exercise will not only help you justify the business rationale for video, but it will also help you story-board the video content that you need to meet those use cases. © 2009, Forrester research, Inc. reproduction Prohibited July 24, 2009
  11. 11. 10 The Best Practices In Online Video Across Industries For Consumer Product Strategy Professionals · Implement our five rules for video. Just because you add video to your site, it doesn’t mean that viewers will watch it. The best video implementations will maximize traffic to their videos by following our five rules to drive traffic: 1) optimize video for search; 2) distribute video across the Web; 3) add context to the video on the Web page; 4) reduce video load time; and 5) enable video sharing.1 · Map video vendors to our video best practices. rather than build a proprietary video solution, many organizations will find it more efficient to use a video platform, such as Brightcove or Ooyala. Before selecting any of the vendors in the space, make sure they can deliver against our video feature checklist and five rules. EnDnOTES 1 Today, 71% of the US online audience already watches Internet video, and the number of streams consumed should more than double by 2013. An explosion of video content from users, professional studios, and marketers is driving this growth. To help organizations break through all the clutter, Forrester has identified five rules that will drive traffic to videos. See the March 9, 2009, “Five Rules To Drive Video Traffic” report. July 24, 2009 © 2009, Forrester research, Inc. reproduction Prohibited
  12. 12. making leaders Successful Every day Headquarters Research and Sales Offices Forrester Research, Inc. Australia Israel 400 Technology Square Brazil Japan Cambridge, MA 02139 USA Canada Korea Tel: +1 617.613.6000 Denmark The Netherlands Fax: +1 617.613.5000 France Switzerland Email: forrester@forrester.com Germany United Kingdom Nasdaq symbol: FORR Hong Kong United States www.forrester.com India For a complete list of worldwide locations, visit www.forrester.com/about. For information on hard-copy or electronic reprints, please contact Client Support at +1 866.367.7378, +1 617.613.5730, or clientsupport@forrester.com. We offer quantity discounts and special pricing for academic and nonprofit institutions. Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward- thinking advice to global leaders in business and technology. Forrester works with professionals in 19 key roles at major companies providing proprietary research, consumer insight, consulting, events, and peer-to-peer executive programs. For more than 25 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. For more information, visit www.forrester.com. 53772

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