All of us have heard the phrase, “A picture is worth a thousand words.” But according to Dr. James Mcquivey of Forrester research, a minute of video is worth 1.8 million words. I am not aware of the exact math Dr. Mcquivey used for his conclusion but through experience we know that video does leave a lasting impression.
In the last few years we have seen an unprecedented growth in online video. According to Cisco, 74% of all internet traffic in 2017 will be video. And there are other cool things we keep hearing about video:
· Web pages with video are 53 times more likely to appear on first page of Google.
· 52% of marketers say that online video has “among the best ROI.”
· Visitors who view videos are 2 times more likely to purchase.
· Every survey will tell you that there is a significant increase in digital video production budgets
· 10% of all video viewing in 2013 was online. And more and more people are using mobile and tablets to watch videos and for longer duration.
But there are enough challenges for most of the companies in the video space:
· They don’t really understand how video contributes to sales in quantifiable way. It makes it more difficult to understand impact of video on sales if you are also a brick-and-mortar retailer i.e. you have some kind of Omni-Channel strategy
· Most of them have very little idea about how many online videos should be produced every year. There is no quantifiable rationale behind those decisions.
· Online video still has challenges of volume as it relates to professional grade content
· It is not well understood how to target videos – basically personalization of videos. Basically, using data to identify the consumer and serving the relevant video based on context. Though, we understand at a high level at the viewing habits of large set of people but most of us remain clueless about viewing habit of individual users.