Converting Web Visitors into Customers: The Lucrative Power of Online Video
Online video is reeling in record viewers. In the past year,
Canadians spent 1.2 billon more minutes viewing online multimedia
than the year before. And in June 2008, a whopping 81.96% of
Canadian web users viewed online videos.
Growing in tandem with popularity of online video is the
bourgeoning field of online video advertising.
A recent report from Borrell Associates estimates local online
video advertising will explode from $371 million in 2007 to $5
billion in 2012. Gone are the days when videos are only expected on
the websites of large Fortune 500 companies. Today, even small- to
mid-sized businesses are expected to have website videos featuring
their products, services, and their unique company story.
"A New Advertising Paradigm"
According to a 2007 Kelsey Group study, 59% of respondents reported
watching online video and, more importantly, more than 50% engaged
in "response activities" such as visiting a web site, going to a
physical location, or making a purchase.
Statistics show that when a web page offers streaming videos and
rich media, users stay on the page and website for a longer period
of time. But don't assume that more viewers automatically mean
greater profits. "It's misleading trying to equate numbers of video
viewers with opportunities to make money," says David Hallerman,
senior analyst at eMarketer.
The trick to increased revenues is not just to have online videos
but to have online videos that work.
Making Online Video Work for YOU
Current trends in online video advertising are all about finding
ways to turn your web visitors into customers. Here are some of the
hottest ways to make online video work for your company.
I. Go Professional
The latest eMarketer predictions suggest that professional content
is the future of online video.
Professionally produced online video grew nearly 25% in 2008,
raking in an estimated 41.6 billion views. And this is good news
for businesses of all sizes, as "the sharp escalation of
professional video content on the Web is creating a viable base for
brand marketers," according to Hallerman.
II. Make it On-Demand
Offering potential customers the ability to assess products via
on-demand product tours increases the chances of turning viewers
into buyers.
Coremetric's 2007 study of CompUSA.com, a website that sells
computers, televisions and other electronics, found that the use of
video and audio on-demand product tours produced a 35% increase in
their sales conversion rates.
III. Take it Mobile
Video streaming and downloading by mobile users is on the rise,
according to Quickplay Media. The number of U.S. and Canadian video
streams viewed in the final quarter of 2008 more than doubled from
the previous quarter.
Mobile ads are becoming increasingly successful, particularly among
iPhone users. One in three mobile users who recalled seeing an ad
said they responded, according to research conducted at the end of
2008. Among iPhone users, that response was one in two.
IV. Use the YellowPages
Partnering traditional print-based classified ads with online
classifieds is a smart and savvy trend.
Studies show that the Internet Yellow Pages (IYPs) and companies
such as YellowPages.ca offer the greatest opportunities for local
merchant video ads. "Yellow pages publishers and online agents
geared toward helping [local] businesses create compelling
advertising have a huge opportunity in the coming years," reports
Kristina Knight of eMarketer. "More advertisers interested in video
means more ads will need to be created and more platforms made
simple for marketers who don't have huge budgets."
This is Just the Beginning
Wherever online video advertising takes you, one thing is clear.
Online video advertising is all about showcasing your company in
order to convert viewers into customers.
And the potential for success is immeasurable.
"We're not even in the first inning on this. Small businesses are
just warming up," reinforces Tom Bates, general manager of
Kuzdu.com. "I think we'll see that smart companies eventually use
longer-format video to showcase their work, their venues, and
themselves. Combine this with directional advertising, and I think
you've really got something."
Want to put online video to work for your business? Learn more
about MB's New Media and Streaming Video
Production services, or book an appointment with
us today!
