71% of companies will increase their video marketing budgets in 2016

By January 5, 2016YouTube

It is widely acknowledged that one of the biggest barriers to success when it comes to video marketing is when companies lack an effective strategy. With this in mind, and with it being the start of a new year, we thought it would be helpful to explore in more detail how brands with successful video campaigns have overcome this major hurdle.

An article on the Reel SEO website reported on a study conducted by Vidyard and Ascend2. The research – entitled ‘Video Marketing Strategy Benchmarks for Success’ – included a series of questions with business, sales and marketing professionals throughout the world who have achieved certain objectives using video as a marketing channel.

So, let’s take a look at some of the key takeaways from the study.

What are the companies’ main objectives?

When video first appeared on the marketing scene, the main objectives of video marketing were to educate and inform customers, increase brand awareness and boost online engagement. Video can now also drive web traffic, generate leads and boost sales; but few marketers have these objectives in mind, meaning there is a big opportunity for others to step in and leverage video for these goals.

 

What are the biggest hurdles they face?

As previously stated, ‘lack of an effective strategy’ was the most common obstacle to video marketing success, cited by 44% of respondents, closely followed by insufficient budgets (41%).

But these can both be easily overcome – rather than separating video into its own marketing department, integrate it with your other marketing activities to better define your strategy and unearth its real value potential. In terms of spending, you don’t need a Hollywood budget to create a compelling piece of video content – in fact, lower-grade filming has increased in popularity in recent years as it adds a greater sense of authenticity.

 

How are their budgets changing?

According to the survey, a staggering 71% of companies with successful video strategies in place plan to increase their video marketing budgets this year, compared with just 5% who foresee their budgets decreasing. Nearly a quarter (24%) are planning to leave their budgets as they are. This could help to reduce the second biggest hurdle currently being faced.

 

What type of content is most effective?

The results of the survey clearly showed a preference for three types of video content: customer testimonials, demonstration videos and tutorial videos – all of which were preferred by more than 50% of the companies with successful strategies. It’s worth noting that customer testimonials (52%) were seen to be twice as effective as case studies (26%), indicating that customers don’t want to hear you singing your own praises, but your customers doing it instead.

Unfortunately, as well as being the most effective type of content, customer testimonials were also found to be the most challenging, with 43% of respondents citing it as the most difficult type of content to produce.

 

How is the channel’s effectiveness changing?

An impressive 91% of the companies questioned said that the effectiveness of their video marketing efforts was increasing – with more than half of these calling the increase ‘significant.’ This heightened effectiveness is more significant than other channels and goes some way to explaining the rising popularity of video.