Digital video marketing is here and it’s big. Big, as in a $135 billion video marketing industry. Yes, that is billion with a B. To learn more about the digital marketing and video marketing industries and where they is going, we recently surveyed over 500 marketing decision makers in the U.S. to learn what their social media strategy is and how they are using video storytelling to reach their audiences. Our findings were insightful to say the least, and our conclusion is that the age of video marketing is upon us and will only continue to grow.
The meteoric rise of digital marketing has opened a discussion about the opportunity of video and the size of the market.
As a point of reference, traditional advertisers expect to spend $83 billion on digital ads and $71 billion for TV commercials this year. Our research has found that the video marketing spend nearly equals the combined spend on digital ads and TV advertising in the U.S. On average, each U.S. business spent about $20,000 on video marketing last year.
One of the reasons video marketing is growing so fast is that the rules of engagement around branding have changed. Branding and marketing are no longer linear modes of communication run by Mad Men style advertising firms and marketing departments. Social marketing, authenticity, storytelling, and customer narratives all coalesce around the idea of belonging, which is the new mode of reaching customers, particularly Millennials. Video marketing in particular, combines the authenticity and emotional power of storytelling with the efficacy of digital marketing.
Video marketing is growing fast, with 84% of marketers intending to create more social videos than they did the previous year. We also found that video marketing is a large part of marketing budgets, with video comprising over a quarter of marketing budgets for 60% of companies. We also found that 64% of companies producing videos in-house.
The pace of video marketing is increasing as well, with 56% of companies creating at least one video a week, and 26% of companies creating video content every day! Businesses understand that their social media marketing strategy must contain continuous and frequent video content.
As the Millennials come of age with an astonishing trillion dollars of purchasing power, we are realizing the true impact of the digital age, which is both promising and problematic. What’s taking shape is not a new channel for communication or commerce, but rather a fundamentally new culture — a new way of being, thinking, and interacting with the world at large. For businesses, this is the disruption of all disruptions. It requires us to play in a landscape that is not of our own devising. We must embrace digital marketing, and specifically video marketing to show our authentic and true selves. Video marketing is the future- a $135 billion future- and it will only grow from there. So grab your social media marketing plan, pick up your I phone camera, and make some videos with Chant.
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