One minute of video is equal to 1.8 million words, according to Forrester researcher Dr. James McQuincey. Businesses are taking this to heart, as animated explainer videos are becoming an increasingly popular marketing tool. It's not easy to decide whether investing in a video is a good idea for your company. It's even harder to figure out if the expense will bear fruit.
If you're uncertain - you're not alone. Many businesses in the industry, at various levels of growth, wonder if explainer videos are the right marketing strategy.
Sure, it's easier said than done - make an animated explainer video and the audiences land on your page. But is it that simple? Explainer videos can cost a pretty penny, and if they're not reeling in some reliable results, then your business just lost out on a lot of money and an opportunity to gain a significant hold on new customers.
Explainer videos aren't just the latest trendy fad for start-ups and the edgy Silicone Valley set. By 2018, video content will make up 79% of all traffic, up from the current 66%.
By the end of 2016, video ad spending in the U.S. will jump from 12.8% in 2015 to 14.3%, exceeding a staggering $9.59 billion dollars, taking over as a significant portion of digital ad spending. The total projected amount of money spent for digital ads by the end of 2016 will be an astonishing $67.09 billion.
A breakdown of the categories within digital ad spending, projected for the end of 2016, include the following:
Your business has a choice - either be prepared to adapt and utilize this marketing tool, or fall by the wayside. Explainer videos are a proven method of capturing audiences and producing interest in your company, product, services, etc., and all business types are jumping onto the bandwagon.
Animated Explainer Videos, when done right, can captivate viewers, generate substantial leads - are likely to be shared and linked to social media, and they have a proven success rate among businesses. Putting your entire marketing 'eggs' in the explainer video 'basket' will be an investment that continues to generate a long-term payoff.
Audiences are a fickle sort, and their attention spans are even more so. Visitors tend to click from website to website in a fleeting manner. A common and frustrating issue for businesses is how to make a visitor's stay go from momentary to lingering. Difficult considering that the average attention span of a regular, text-based website is 8 seconds. So you need to make a huge impact right from the second a person hits your landing page.
The average attention span jumps up to a startling 120 seconds when a video is involved in some way. Animation videos stand out from other online video marketing, and audiences retain their attention spans longer with this style of video.
Text based websites are becoming the dinosaurs of the marketing world, and can be a danger to companies who want to be easily searchable. A customer can find a video based website much easier than a text based website because Google gives priority to video content, resulting in 53 times more chances of it appearing on the first page than any text-based website!
Now that you know animated explainer videos are truly vehicles of viewer captivation, you need those viewers to become solid leads. There's a 1500% boost in engagement when a business features a video versus text alone. Visitor engagement equals people hanging around your site, and potentially becoming customers.
Dangling an explainer video as the proverbial carrot in front of visitors shines a light on your company, service, or product, and is more likely to drive them to take some action. You will have a better chance of a lead becoming a customer since people recall 10% of any visual data three days after first seeing it, and up to 70% of the audio-visual information, according to Western Ontario University research. That means if online shoppers watch a video that explains about a service or product, they are 64% and 85% more likely to make a purchase.
So if you want that lead to transform into a spending customer, it behooves your business to incorporate an animated explainer video because it can increase conversion rates by a dramatic 20%.
When companies include an explainer video, they get a form of free marketing and advertising because people are prolific in sharing videos on social networking sites. Did you know that videos are 12 times more likely to be shared on Twitter than links and texts combined? Twitter users share 700 videos per minute, and Youtube uploads of videos over 100 hours per minute. Facebook states that more than 50% of Americans visit their site watch at least 1 video daily, and 76% of Americans who use Facebook say that they discover videos on it.
Essentially, explainer videos are like a supplemental form of free marketing. Businesses can spread the word about their company without doing any additional legwork. Interested visitors will do it for you!
You may be concerned that an explainer video might only be a productive marketing tool if you fall into the 'right business genre.' But statistics have proven that explainer videos are successful regardless of the industry. Simply put, people like videos, and they don't want to waste time cycling through pages of text. Further, hard data can't be argued with - 52% of business marketing professionals say that video is the online content with the best ROI's.
A few specific case studies prove just that.
Crazy Egg's conversions shot up to 64%, and they enjoyed $21,000 in extra monthly revenue just by creating an animated explainer video for their landing page
Dropbox made a $50 million increase in revenue and a 10% rise in the conversion from their explainer video.
ReelSEO published a survey that indicated that 96% of B2B agencies use video in their marketing campaigns, averaging 73% positive results to their ROI.
This data is all great news, but there are some challenges - Yes, there's going to be some challenges involved with implementing an explainer video in your marketing technique. You would be surprised at some of the common issues that arise when you decide that you want to go ahead with your plans.
Certainly, there are other challenges that may arise, but focusing on the core problems can help you stay on track, and ensure the money you invest produces a quality explainer video that increases viewership traffic, and gains you customers and revenue.
Let's take a direct approach and present some solutions to the previously addressed challenges. Having a good understanding of your business's explainer video goals prior to beginning the implementation process is a solid place to start.
Do your research ahead of time. That includes who you decide to hire to design and create your explainer video. Make sure that you choose an experienced company that has a proven rate of success in this field.
Planning a good SEO campaign social media strategy is important because it gives you a better chance that your excellent explainer video reaches its target audience.
As for encouraging viewers to become customers, the chances are favorable that if your video hits all the sweet spots, your possibility of winning over an audience and turning them into a client is high. Online Publishers Association states that 46% of users take some action after watching a video.
Whittle down the key points you you need to make for your explainer video to be the perfect solution to your viewer's problem. Know your demographic and who your customer base is. For example, if your intention is to win over high-level executives, know that 75% of them watch work-related videos on business websites at least once a week. 65% of executives visit the marketer's website, and 39% call a vendor after viewing a video, according to Forbes.
Overall, your explainer video has to be a representation of your company in the right way. NEILSON Wire shows that 36% of online consumers trust video ads. If you keep it entertaining, relatable, professional, and unique to your business, you can build the brand association.
Investing in an explainer video is going to be a one-time expenditure that will continue to pay off. Tremor Video states that 75% of online video viewers have interacted with an online video ad this month. Numbers like these have caused businesses to view the investment expense of an animated explainer video as less of a risky gamble, and more a sure bet.