As video consumption accelerates, it's clear that it is becoming a critical tool for enterprises to nurture and retain customer relationships. To meet these evolving needs, enterprises are starting to apply video as a form of prospecting, lead nurturing, engagement, brand awareness, self-service, and even commerce. But what is contributing to the rapid rise in the delivery and consumption of video?
Four reasons for video engagement's emergence
Four key trends are driving the migration toward video as a business engagement tool:
Video viewing is near ubiquitous among millennials. They're the most active video viewers of any age group. eMarketer forecasts that the total audience will increase by 1 million or fewer viewers annually through 2019. Millennials prefer video as the primary means of consuming content, even opting to go to YouTube over popular search engines when conducting online searches. As millennials, and even other demographics, move away from traditional TV consumption, the lines between video and TV viewing are blurring. If brands want to capitalize on this growing trend, they need to appeal to millennials with relevant video content across myriad channels, devices, and messaging platforms.
Consumers are influenced by video when shopping online. The uptick in video viewing and consumers' growing affinity for e-commerce positions video as an effective tool to maintain relationships with customers while creating a compelling and personalized brand experience. According to Animoto, four times as many customers would rather watch a video about a product than read about it, and shoppers who view video are 1.81 times more likely to purchase than nonviewers. Brands that want to benefit from this trend must not only make their e-commerce videos instructive, relevant, and engaging, they must also embed with calls to action and interactive capabilities to give shoppers the ability to purchase the product(s) in the video without leaving the channel.
The rise of video consumption on the social web is leading to social dominance. In January 2017, Facebook reported that video posts have been gaining share of total post types and are now more than 50% of Facebook posts. That means more than 50% of people who visit Facebook in the US every day watch at least one video. Brands are catching on and aligning advertising spend to this uptick. Facebook reported in 4Q16 that video ad spend totaled 65% versus 35% for non-ad spend. This means enterprises must elevate their video marketing and engagement strategies over the social web going forward to stay competitive and capture audiences where they want to engage with brands.
The increase in popularity of live-streaming video is changing the marketing paradigm. In January 2016, just 11% of Facebook pages for media companies were home to Facebook Live videos. By May 2016, that percentage had grown to 44%, a 300% increase. And since its launch in 2016, daily watch time for Facebook Live has grown by more than 400%. The increase in live video is making consumers more accustomed to video and helping more readily position it as the go-to engagement tool in a mobile-first world. Along with rendered video that applies personalized messaging and editing, spontaneous live-streaming video is becoming a must-have in marketers' content mix.
Market Radar: Exploring the Video-Enabled Enterprise, IT0020-000311 (September 2017)
Mila D'Antonio, Principal Analyst, Customer Engagement