If “a picture is worth a thousand words” how much is a video worth? With smartphone and tablets allowing people to watch videos in the palm of their hand, there is certainly enormous value and opportunities for small and large businesses alike.
While many people still read online content, it is videos that are grabbing a significant amount of consumer attention these days. Our computers and phones are bursting with video content, and this has not been lost on SMBs searching for new ways of advertising on social media and websites.
Video Advertising and its Reach
Statistics show that online video is now the most accessible and successful medium for advertising. Television advertising has always been dominated by larger companies with large budgets set aside for TV campaigns. With the internet now a major source of product information, doors have opened to smaller businesses to advertise on a platform that is more affordable and can be more carefully tailored to their audiences. Not only is producing a video now more accessible, recent statistics show that by including a video on a landing page, companies can increase their conversion rates by 80%.
Many SMB’s in recent years have even seen their promotional videos go viral, vastly increasing revenues. In 2012, California-based company The Dollar Shave Club released a promotional video on a budget of around $4,500 which brought them 12,000 new product orders in the first 48 hours alone. The video itself now has 24 million views on YouTube, and the company eventually sold for a billion dollars to Unilever. Although this is clearly not the case for every video released by SMBs, virality is not the only measure for a video ad’s success – creative concepts and a great script go far with consumers.
Challenges for SMB’s
Despite increasing ease of video creation along with evidence of their success with consumers, SMBs are still not fully utilizing this opportunity. Why not? The major concern of SMBs is, of course, resources and uncertainty. At what stage of a business should a promotional video be made? What if the video does nothing for sales? SMBs are faced with this dilemma when drawing up their marketing strategy – whether to invest time, money and creative capital in producing a high quality video to promote their product or service.
Many SMBs are ultimately concerned that no one will watch their video ad, with the money spent down the drain. B2B businesses in particular, which find that their potential clients are strapped for time, are concerned about the viability of a video. A business that focuses on selling machinery parts, for example, may view a video ad as extraneous. Many SMBs also lack the technical knowledge to create a video, and view it as time consuming, resource draining and ultimately, unnecessary. Other SMBs conclude that video advertising is a passing phase not suited to smaller companies. They may also conclude that their target audience is too narrow or believe they have sufficient tools to market their product without the use of video.
Why Video Advertising is Still Worthwhile
While these concerns are valid, the exponential growth of resources available to small and medium businesses in recent years should suffice to guide them into successful video advertising. All it takes is a simple google search to find video making software that can help small businesses shift their marketing strategy. There are hundreds of available tools on the market, from tools that filter through your raw footage to find what’s best for your video needs, to tools using quirky cut-outs to explain products and then to Promo by Slidely which gives you the tools to create a marketing video for your business. Statistics show that short, well-made videos are useful to target consumer audiences and business clients alike, and it is time small businesses utilized them.
Tom More is the CEO and Founder of social video creation platform Slidely. Prior to launching Slidely in 2012, Tom founded and led Eyespell, an internet and multimedia solutions company. He is also self-taught musician, photographer, digital marketer, autodidact creative, and tenacious entrepreneur.