subject: Online Video For Small Businesses? - Is it cost effective? [print this page] Online Video For Small Businesses? - Is it cost effective?
Many years ago, business owners could only spread the word about their products and services as far as the wind would blow. The invention of the telephone changed that, and opened up a whole new world allowing us to reach other towns, cities, and countries. And of course in recent years the internet has revolutionised the possibilities of local, national and international correspondence, business and e-commerce.
A recent media study determined that consumers feel that for businesses to address their fundamental needs and wants "the internet has become a necessity, and yet many businesses still have not embraced this most effective and powerful method of carrying their message fully. This being particularly the case with the introduction of online video advertising and promotion to their business, which continues to become the only way to remain innovative and competitive in many markets and industries."
And this form of engagement with your customers and prospects is not an exclusive club reserved for the large multinational or industry leading elite organisations. Quite the opposite in fact. It is also proving particularly effective for small businesses across the globe from home grown and managed business and start ups, service industries and tourism as well as specialist niche services. There are simply no boundaries to the opportunities encompassed within this marketing form and businesses of all sizes have discovered one basic truth: Incorporating online video into your business lead to sales, growth and stability.
The Online Publishers Association published a report entitled "Frames of Reference: Online Video Advertising, Content and Consumer Behaviour". The report finds that out of 80% of viewers who watched an online video ad, over half took some type of action. Close to a third had visited a related Web site, 22% looked for more information, 15% percent had gone to a store, and 12% made a purchase.
So of course you are absolutely correct by asking yourself, "if only 12% made a purchase, that's not very good, in fact it's poor". But is it, actually?
Consider this...if you have a 50,000 per year business, then 12% of that is 6,000. Online video ads are very affordable, and can cost as little as 200 to 400, but not using a video can cost you 6,000. So effectively, if your business sales are of 1,600 to 3,600 per year or more, then the opportunities presented to you and your business following the introduction of your video advertising or promotion outweigh the costs significantly.
But here is a further, and particularly interesting point to absorb when considering cost effectiveness. The media study, mentioned above, also found that "if a consumer has a positive attitude towards an advertised brand, and likes the video content that the ad appeared within, brand consideration jumps 61%. If the consumer's initial attitude toward the brand is neutral or even negative, brand consideration still rises 21% if they like the adjacent video content."
So I am sure you will agree that in addition to being a highly powerfully and effective tool for engaging and informing prospective customers of your products and services, incorporating online video content into your small or medium sized business also provides incredible and tangible results for those prospects to become retained customers.
To read the other articles in this series please click here
