Why Small-Business Owners Need To Invest in Video Marketing in 2018

Updated: Apr 15, 2019





It's no secret that video content is the most consumed content on the internet. In 2012, YouTube's Robert Kyncl predicted that by 2020, 90% of all internet traffic would be video. And he wasn't far off. The latest predictions state that we're already at 80%.


This reflects the extraordinary value of video for businesses in today's digital age. We're all tuning in to watch some kind of video shared by our friend's or followers on Facebook, Twitter, LinkedIn or Instagram and your business should be capitalizing on this fact. The statistics about video consumption and video marketing in this article from HubSpot are astounding. Our favourite is that 85% of people say they'd like to see more video from brands in 2018.


Despite all the evidence about the necessity of video marketing, we hear small-business owners say the same three things:

"The cost of video production is too high. We can't afford it"
"We would love to, but we're not sure if it is worth it in our industry"
"We don't have the equipment or the time to make videos"

This article is going to examine why video is such an effective marketing tool and how you can use video to grow your small business. (We would include big-business, but big corporations have known about the power of video since the dawn of television. The difference today is that small businesses can now afford to produce video content for use in their marketing campaigns... Read on below)


Part 1 - The Economics of Video Marketing


The Cost of Video Production

The cost of video production has seriously plummeted in the past 5 years due to a combination of affordable camera equipment, more competition and powerful editing software which has simplified workflows. From needing a considerable loan to produce a very basic commercial, you're now able to get an exceptional marketing video; conceptualized, shot and produced; well within your operating costs.


Every business has a different budget and requirements and production companies can accommodate your budget by offering you a range of services and videos with different price points.


Return on Investment (ROI)

From a business perspective, any marketing expense can be justified if it is likely to see a return on the investment.


Adobe states that 51.9% of marketing professionals believe that video provides the best ROI. Video costs have dropped and the upside from video marketing has increased. For instance, 4 times as many customers would rather watch a product video than read about it. You have to ask yourself:

How much am I going to spend marketing and advertising this year?

Once you have your marketing budget, aim to invest around 40% of that into video production. Based on the figures from HubSpot, Adobe and Forbes, investing heavily into video production is the best way to spend your marketing money.


40% is a good amount to invest in the production of video content because you need to retain budget for marketing your videos on the appropriate platforms.


Marketing your Video

Once your video is produced, you need to roll it out across the web. Upload the video to the usual suspects: YouTube, Facebook, LinedIn, Instagram...


From this, you'll get a few organic hits but you'll mainly be seen by people who are already in your network. Where video really excels; in terms of interactions, engagements, click-throughs and sales; is when you promote the video in a paid advertising campaign. This raises two questions:

Relevancy: Are you aware of which platform is the best for marketing in your industry?
Targeting: Do you know how to target your demographic within that platform?

Your target market should determine where the majority of your Ads budget is spent, for example:

  • Is your market Business-to-business? Invest in LinkedIn Ads

  • Are you a Wedding Photographer? Google Adwords and the Classifieds

  • Do you offer house cleaning services? Facebook Ads are a good bet

Think about it like this: Imagine Pepsi spends $1m on the production of a commercial which is specifically designed to be premiered during the Super Bowl. Then imagine they fail to buy the ad-slot with the TV network during the Super Bowl. The commercial never gets seen because they failed to market the video on the correct platform.

In an attempt to recover their losses, Pepsi uploads the video to YouTube and it gets seen by a few thousand people. The video is not hitting their target audience of 'people watching the Super Bowl' and is ineffective.


You have to invest your advertising budget in paid ad campaigns which are relevant and targeted.


You video production company should provide consulting on matters such as where to market your video and how to manage your campaigns. Some offer it for free. They're the video marketing professionals and have experience in creating videos and managing marketing campaigns on online platforms.



Part 2 - The Psychology of Video Marketing


People Remember Video

80% of viewers remember videos that they see online. People will remember your brand and your advert for months, possibly years. And stats prove that the information within the advert is more digestible for consumers. Only 10% of information is retained from reading or from listening in isolation. This figure rises to 65% information retention for audio/visual media.


Our brains are more likely to remember the information because of the complexity of the stimulation, engaging both the visual and the auditory cortexes of the brain.


Seeing Is Believing

If your customers hear your voice and see you on-screen (perhaps in an interview, in the office or on-site) they are much more likely to want to spend their money on your product. The classic example that we give here is the Kickstarter video:


Kickstarter asks us to invest in a product that often doesn't exist yet. We are handing cash to a stranger in trust that they will be able to deliver on their promises. How much money have we given to strangers in this manner? Almost $4,000,000,000 ($4bn) in total.

Kickstarter campaigns are driven by powerful video marketing campaigns and they almost always feature the product designer, CEO, CTO or some important player at the company. It's difficult to imagine investing in a Kickstarter campaign which doesn't have a video.


By investing in video, your customers will get to know you and will trust you before you've even met. You've broken the ice and you've got a level of familiarity that the competitors don't. Your brand has gone from being 'just another company' to having a human face and voice. So when it comes to parting with their hard-earned cash, customers are more likely to choose you over the competition.

This principal is applicable to businesses and enterprises in all industries. From public speakers to construction companies, video marketing is surging across the board and it's the number one way to stay ahead of the competition.


Emotional Decision Making

Decision making is an emotional act. Your customers are more likely to part with their money "because it feels right". Everything about your brand has to tip the emotions in your favour. A number of factors will help here, but video is where you can really make a difference.


Video has the power to create emotions like no other medium. Through intelligent music selection, building a narrative that people are interested in, generating an evocative and inspirational script, using dramatic imagery which compliments the narrative, the body language and facial expressions of the people on-screen, the framing of each shot used in your video... There are so many ways to build an atmosphere in video through the combination of visuals and sounds. A good video marketer will be able to create an mood with video to help you connect with your audience on an emotional level.


Part 3 - Tech Perks


Shares

Shares on social media are free marketing. Every share gives you access to a further 100 people (based on someone with 600 followers). This is where your video marketing can really take off, get you an good amount of organic (free) exposure and perhaps even go viral.


Going viral is difficult and unpredictable. Despite this, there are some things that we can do to get some free marketing through shares and likes without necessarily hitting 200m views on YouTube...


People want to show their friends videos that inspire, innovate, educate or entertain.


For example, if you own a business which manufactures plastic pipes, how could you make an compelling commercial that would make anyone and everyone interested in your company? Here are just a few ideas :

  1. Inspire: Donate the pipes to build goal posts for children in the developing world

  2. Innovate: Use the pipes as percussion instruments in a public place and record the crowd that gathers to watch

  3. Educate: Create a "how it's made" video and focus on the manufacturing processes

  4. Entertain: Create a cinematic short-film with slow-motion shots and an interview of 'your story' and how you became the head of a plastic pipe company

Just ask your video marketer to come up with some out-of-the-box ideas with the goals of creating an inspiring, shareable video. If you can pull it off you'll get a lot more exposure for a lot less money!

Email click-throughs

Regardless of whether or not you invest time into email marketing, you are still sending emails from your company email account daily. Every time you send an email to a customer, client, partner, potential client, random person from that networking event, accountant, the charity you support, your cousin and your estranged friend from high school, you are missing out on a huge marketing opportunity.


By simply embedding the video in the footer or signature of your email, you'll amplify your site visits and sales. Open rates for video in email are as high as 19%, people are 3 times more likely to click-through and once they're on your site, they're 64% more likely to buy your product.


So once your video is produced, upload it to YouTube and include the link in your email. It's a simple act that will make a huge impact to your site visits and sales.


SEO (YouTube and Google)

The world's most-used search engine is Google. The second-most-used search engine is YouTube. By embedding a YouTube video on your website you'll be doing wonders for your SEO on both of these vital search engines. Here's why:


When you upload to YouTube, you'll input your keywords. That gives you a chance to be discovered directly on through YouTube's search bar, however the real value comes when you embed the video on your website.


These keywords are vital for your Google SEO. When you embed the YouTube video on your website, Google will read the keywords from the video as it scans your page, boosting your Google page ranking by up to 50 times! On top of that, people will spend more time on your site, to watch your videos, which is one of the key factors in Google's algorithm.


Make sure you nail down your keywords using the keyword planner and your video-powered SEO will help propel you onto the first page. Use this guide to achieve your SEO goals with the help of video.



The Take-Away

We started off this article with three things that we hear business owners say all the time:

"The cost of video production is too high. We can't afford it"
"We would love to, but we're not sure if it is worth it in our industry"
"We don't have the equipment or the time to make videos"

We have shown that video production is more affordable than ever and is comfortably able to pay for itself. If you invest in marketing your video on the correct platform, you're likely to see a positive return on investment in the long-run.


We have also discussed how every industry can benefit from video marketing by connecting with their audience, building trust, humanizing your brand and engaging people's emotions. Your customers will retain more information about your message and they'll remember you for longer.


We also extolled the advantages of video marketing beyond the advertisement itself, boosting your SEO, giving you free marketing through social media shares and engaging your email recipients.


Regarding having the 'time for video production', a meeting or a phone call is all that's needed to get the ball rolling, your video team should take it from there.


And as for 'Equipment', your video production company will provide everything that you need. No need to go out and buy expensive rigs, sliders and strobes and spend hours learning how to light a set. Video production companies spend their lives creating content like this, so leave it up to them to provide all the gear and expertise needed to make your company stand out from the crowd.




BEN HEMMINGS MEDIA is a leading video production company based in Toronto. We specialize in creating videos and films for non-profits and businesses across North America.

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