It’s now abundantly clear that the use and consumption of online video content has exploded.
- Earlier this year, comScore, Inc. reported that 183.5 million Americans watched online content videos in May 2014.
- Last year, comScore reported that over 1.3 billion people worldwide watch online videos on a monthly basis.
- Over 90% of consumers globally now watch online video content, according to the 2013 Accenture Video-Over-Internet Consumer Survey. This survey also revealed that 25% of consumers watch video content on a desktop or laptop computer every day, and another 22% do so at least 3 times per week.
A recent report by the Aberdeen Group (Analyzing the ROI of Video Marketing) provides more evidence regarding the importance of video content in the content marketing mix and includes insights about how high-performing companies are deriving significant value from video content.
As with many of its research studies, Aberdeen divided the survey respondents in its content marketing study into three tiers – Best-in-Class (the top 20% of aggregate performers), Industry Average (the middle 50%), and Laggards (the bottom 30%). Aberdeen used four performance criteria to place survey respondents into one of these categories – website conversion rate, year-over-year increase in unique website traffic, year-over-year growth in marketing’s contribution to revenue, and growth in company revenue.
The Aberdeen research found that Best-in-Class companies are only slightly more likely than Industry Average and Laggard companies to use video content. However, Best-in-Class companies are 24% more likely than Laggards to have the ability to generate (and use) original video content (68% vs. 55%).
The Aberdeen study also found significant advantages of using video content.
- Companies that use video content achieve an average website conversion rate of 4.8%, compared to only 2.9% for companies that don’t use video content. The higher conversion rate means that companies using video content require 37% fewer unique website visits to produce a marketing response than companies that don’t use video content.
- Companies that use video content have an average cost per marketing-generated lead of $93, while the comparable cost for companies that don’t use video content is $115.
- To maximize the potential of video content, enterprises need an effective way to manage, localize, and publish videos. Historically, most enterprises have managed videos in an ad hoc fashion using specialized personnel or outsourced services and stand-alone software applications. As a result, video content is not typically catalogued, stored, and managed like other enterprise content assets. As the use of video content continues to grow, and as videos become integral to an organization’s marketing and communications efforts, this lack of a common management system can create significant issues.