2012 Online Video Marketing Survey and Video Trends Report

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1 2012 Online Video Marketing Survey and Video Trends Report Published by the Web Video Marketing Council and Flimp Media March 2012

2 Table of Contents Executive Summary...3 Overview...3 Methodology... 3 Respondents by Industry Sector... 4 Respondents by Company Size... 4 Business Applications for Video...5 Outbound Marketing Uses Rank Highest... 5 Online Video is a Mainstream Tool for Marketers...5 Positive Outlook for Online Video Marketing Budgets... 6 Positive Outlook for Online Video Marketing Budgets... 6 Use of Online Video in Marketing is On the Rise... 6 Majority of Marketing Executives Now Use Video in Marketing % of Video Marketers Report Positive Impact... 7 Impressions of Video Marketing...8 Marketers Believe Video Increases Click Thru Rates... 8 Consumers Are More Likely to Purchase or Convert with Video Service Provider Offerings...9 Opportunities for Service Providers... 9 Most Effective Way to Use Video in Marketing 10 Video on Social Media Sites on the Rise Is Video Marketing the Wave of the Future?...12 About The Web Video Marketing Council...12

3 2012 Video Marke ng Survey and Video Trends Report An online video marke ng report published by the Web Video Marke ng Council and Flimp Media. Executive Summary Online Video has clearly become a mainstream tool in the arsenal of seasoned marketing professionals. The latest survey results show that: 81% of marketing professionals say that they have used online video in their online marketing efforts. 67% of marketing professionals have posted online video to their website and 61% to social media sites. 52% of respondents have used video marketing and of those that have used it, 88% report that integrating video with marketing has made a positive impact. Overview The Web Video Marketing Council conducted an online survey in Q and Q to compile insights and market research on the deployment, experiences and preferences of senior marketing professionals regarding the use of online video for marketing and social media. The survey results provide a means to evaluate current use and impressions regarding a range of online video applications for outbound marketing initiatives as well as for internal corporate communications programs. In this report of survey results and industry trend analyses, comparisons are made to research findings from the 2011 Online Video Marketing Survey. Methodology The online survey was digitally distributed to senior marketing professionals through the Web Video Marketing Council website, newsletter, partner databases, newsletters, and promoted via research partners of the Web Video Marketing Council including ReelSEO, Interactive Media Strategies and Flimp Media. The survey included 16 questions and responses were submitted through a secure online survey program. Survey data were collected in an online database for analysis.

4 Respondents by Industry Sector A total of 272 respondents participated in the 2012 Video Marketing Survey, with 262 (96%) reporting that they have direct involvement and decision making over their organizations marketing initiatives. Respondents represent a wide range of industry sectors and company sizes. Agriculture & Energy 3% Healthcare & Pharmaceutical 4% High Tech 21% Professional Services 19% Other 11% Real Estate 5% Hospitality & Restaurants 5% Agriculture & Energy 1% Financial Services & Insurance 12% Telecommunications 3% Retailing & E-Commerce 13% Respondents by Company Size Of the 272 survey respondents, slightly more than half of the respondents (56%) were from small companies of 100 or fewer employees. 38% were from mid-sized companies of 101 to 1,000 employees. 6% were from large enterprises with more than 1,000 employees. What is the Size of Your Organization? 1 to 100 employees 56% 6% 101 to 1000 employees More than 1000 employees 38%

5 Business Applications for Video Online Video has become a common staple of organizations for a variety of important business applications for both internal and external purposes. 5 Website Marketing Use Ranks Highest, followed by Social Media A majority of seasoned marketing executives surveyed by the Web Video Marketing Council (WVMC) report using video for various marketing applications such as posting video to their organization s website (67%), posting videos to social media and social networking sites (61%), and using video for marketing initiatives (52%). Using online video for lead generation (33%) also becoming popular. Applications Where Online Video Has Been Used Posting Video to Organization s Website 67% Posting Video on Social Media Sites 61% Marketing 52% Generating Sales Leads 33% Internal Communications by Senior Mgmt 17% 0% 10% 20% 30% 40% 50% 60% 70% 80% As indicated in the survey results shown in the chart above, online video has become a practical business tool for applications for both internal and external uses. The results in the chart are reflective of a more experienced and digitally savvy group of marketing professionals, and are not necessarily an indication of how online video is being deployed by businesses as a whole. Online Video is a Mainstream Tool for Marketers With two-thirds (67%) of respondents reporting that they have posted video to their organization s website, and a clear majority (61%) saying they have taken advantage of posting video content to social media and social networking sites, online video is becoming a mainstream application.

6 Positive Outlook for Online Video Marketing Budgets Although economic conditions have been weak for several years, WVMC survey results portend a positive outlook for online video marketing budgets for 2012, as 64% of marketing professionals responding to the survey indicated they have plans to increase their spending for technologies, platforms and services related to the use of video for business marketing programs in Almost twothirds (64%) of survey respondents indicated an increase in their video marketing spending in 2012 compared to the prior year. What Do You Anticipate Doing with Your Video Marketing Budget Over the Next Year? 64% Increase Decrease Maintain 7% 29% Use of Online Video for Marketing is On the Rise There are several interesting trends when comparing results from the 2012 survey to the prior year s research findings. The percent of surveyed marketing professionals that have ever used online video in their marketing efforts rose from 70% in the 2011 survey to 81% in the 2012 survey. The percent of marketing professionals that have used online video in their marketing efforts rose from 70% in the 2011 survey to 81% in the 2012 survey Yes Considering No Not Sure Have You Ever Used Online Video in Your Marketing Efforts? 2011 vs % 3% 6% 13% 10% 17% 70% % 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

7 Majority of Marketing Executives Now Use Video in Marketing Respondents to the WVMC Video Marketing Survey represent a more advanced segment of the marketing population, with strong representation from senior marketing executives such as Chief Marketing Officers, Vice Presidents of Marketing, and Directors of Marketing & Corporate Communications. 52% indicated they have used video in their marketing programs. 7 Have You Used Video in Your Marketing Efforts? 2011 vs 2012 A majority of respondents have used video in their marketing initiatives (52%), which reflects a slight increase over the prior year s survey when 50% reported using video marketing. Yes Considering No 26% 24% 21% 26% 52% 50% % 10% 20% 30% 40% 50% 60% 88% of Video Marketers Report Positive Impact For those marketers reporting that they have used video with marketing, 88% indicate report obtaining a positive impact on their marketing efforts. What is the Impact of Integrating Video with Marketing at Your Organization? 11% 1% Positive impact on our marketing efforts. Not much impact on our marketing efforts Somewhat negative impact on our marketing efforts. 88%

8 Impressions of Video Marketing Results 8 Marketers Believe Video Increases Click Thru Rates Do You Believe integrating Video with Marketing Increases Click Thru Rates? 76% Yes 7% No Don t Know 17% Consumers Are More Likely to Purchase or Convert with Video The vast majority (72%) of senior marketers believe that consumers visiting websites and e-commerce sites are more likely to make a purchase or take other desired calls to action after viewing an campaign that incorporates video. Do You Believe Consumers are More or Less Likely to Purchase or Convert after Viewing an Campaign that Incorporates Video? 3% 8% More likely to purchase/convert 72% 17% Less likely to purchase/convert No difference Not sure

9 Service Provider Video Offerings Results from the most recent survey provide some interesting insights and perspectives on the use of video for marketing. When asked whether their service provider offers video marketing solutions, less than half of the respondents in the survey (48%) responded in the affirmative. 9 Does Your Service Provider Offer Video Marketing Solutions to its Customers? 48% Yes No Don t Know 21% 31% This is despite previously stated findings showing that 52% have actually been using video marketing. This small difference is likely the result of a combination of factors. First, some marketers use video solutions that are independent of technology provided by their primary service provider. Second, marketers often change technology providers for services, lead generation programs and other advertising solutions in an effort to find the right tool or technology that generates the best ROI for their marketing investments. So respondents may be providing an indication that their current provider of choice does not provide the capability, but they may have used a solution in the past from a provider that offers video marketing capabilities. Opportunities for Service Providers With 31% of seasoned marketing professionals indicating that they don t know whether their service provider offers video marketing solutions, there is a significant window of opportunity for providers to do more effective outreach perhaps with video messages, to let their current customers as well as their prospective customers know about the availability, and the benefits that can be derived from using video as an element of their marketing efforts.

10 Most Effective Way to Use Video in Marketing The vast majority of Internet service providers (ISP s) and clients in use today do not effectively support the ability to play video content embedded directly within the recipients message. 10 When asked about the most effective way to incorporate video in marketing efforts, respondents by an overwhelming margin indicated that the best approach is to provide a link (which can be a thumbnail image of a video) to a video landing page or microsite where the user is directed to in order to watch the marketing video. What do you believe is the most effective way to use video in marketing? Link to Video Landing Page 59% Link to Video on Social Media or Video Sharing Network (youtube) 22% Video Player Embedded in 9% Other 7% Animated or Video GIF Embedded in 3% 0% 10% 20% 30% 40% 50% 60% Nearly 60% of 2012 respondents indicated that linking to video landing pages is the preferred choice for incorporating video into marketing programs. In the WVMC survey report published in early 2011, survey results showed fewer responses for this approach (44%). Of particular note only 3% of respondents thought that animated or video GIFs were effective for video marketing, compared to 5% in Posting Video on Video Sharing Sites on the Rise The results of the 2012 Report highlight marketplace trends that have taken place over the course of the past year or so regarding the use and perceptions of social media and social networking sites as tools in the marketing arsenal. In the 2011 survey report only 6% of respondents indicated that posting videos, or links to videos, on video sharing sites was the most effective strategy, compared to the 2012 results where 22% believed that this approach was most effective.

11 Primary Barriers to Using Video in Marketing With 52% of marketers indicating that they have used video in their marketing efforts, 26% not having done so but saying they are considering its use, and 21% stating that they have not used video marketing, it is enlightening to see the reasons indicated as the primary barriers for its use. 11 As shown in the chart below, the lack of availability of video assets was noted by 41% of this year s survey respondents. This ranks ahead of issues related to the ease or difficulty (actual or perceived) of the integration of video into their marketing efforts (a reason stated by 25% of respondents) and more than twice as high as the barrier of high costs which was selected by 18% of marketers. A concern over the receptivity by customers who might receive video via messages was only indicated by 10% of marketers. What Do You See as the Primary Barrier to Using Video in Marketing? Availability of Video Assets 41% Ease of Implementation 25% Cost 18% Receptivity of Customers 10% Other 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Conclusions As the survey results reflect, video is clearly viewed as an important and effective tool for most online marketers, with 76% of survey respondents indicating a belief that integrating video with marketing increases click through rates and 72% stating they believe that consumers are more likely to make a purchase or to take other desired calls to action after viewing video content sent to them in an message.

12 Is Video Marketing the Wave of the Future? 12 The use of video in marketing initiatives has become more commonplace and is being used by a practices rather than as something they will adopt in the future. However, it s clear that interest levels remain What are your impressions of video usage in marketing? 51% 7% Wave of the future I m intrigued Don t think it works 42% About the Web Video Marketing Council The Web Video Marketing Council (WVMC) is a professional association established to provide timely, relevant information about video marketing topics and technologies to professional marketers and communicators through its website, newsletter, reports and webinars. Companies and organizations that want to contribute non commercial white papers, reports and articles to the WVMC for publication should contact the WVMC directly through our website. About Flimp Media, Inc. (FMI) Flimp Media Inc. (FMI) develops video marketing, communications software technology, and provodies a wide range of clients with video creative services solutions platform enables online marketers and communicators to quickly create, distribute, track and report interactive video postcards and video landing pages for video marketing, sales and communications without programming, or IT resources. For more information about FMI products and services visit.

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