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Video Increases Conversion Rates

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Watching videos is one of the most popular activities worldwide. When I was younger and still living with my parents, I remember our whole family gathering around the TV on Sundays to watch the 8 o’clock movie. Today, the way we consume videos have changed a bit.

Video popularity is increasing daily and is also gaining accessibility with more and more internet connected devices like smartphones and tablets. To put this into perspective, it is estimated that in 2007 YouTube consumed as much bandwidth as the entire internet in 2000. America watches roughly 8,000 years of video content per day on YouTube and 700 years of video content on Facebook, while globally YouTube accounts for 46,000 years of content watched daily.

Youtube also reports that more than half of their views come from mobile devices, with an average viewing session of more than 40 minutes. In an age of ubiquitous smartphones, this change in video consumption is hardly surprising. Since the invention of the television, traditional TV viewership has increased yearly until it peaked in 2010 and is now rapidly declining, while mobile watch time almost doubles yearly.

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In a recent study from Miner & Co, TV is no longer the first choice for kids’ entertainment with 57 percent of parents reporting that their child prefers mobile devices to TV when it comes to video viewing. Additionally, 58 percent of kids in households with tablets have their own device, and half the kids, when disciplined, will have their tablet taken away and are left only with TV. The personal viewing experience that mobile devices offer, has created a generation of kids that associate TV with punishment.

This insidious expansion of mobile and online video content is slowly crushing TV budgets as TV viewership continues to decline. A 2015 study by Michael Nathanson of MoffettNathanson, revealed that Netflix is giving a memorable kick to the TV business in the U.S. The study compares TV viewing of Netflix vs non-Netflix households and shows that broadcast networks are getting defeated. On the other hand, networks that have adapted to the personal viewing experience, like Disney, has 11% higher viewing time than Netflix.

With the growth and evolution of the personal viewing experience, it’s understood that marketing efforts are more naturally geared towards video content. People would rather watch a video about a product than read about it. As high as 40% to 60% of viewers take some kind of action after watching an online video. This means either going to a brand’s homepage or ideally buying a product or service. Consumers find video content more credible as this is a way for brands to engage with their audience directly. Explainer videos see the most conversions and are a popular video marketing tool by being an easy way to provide information to customers and help them understand the product.

Our current content polluted online environment offers a challenge to separate your video from all the other dazzling brand explainer videos. The first 5 seconds of a video is critical. People will easily abandon a video if it doesn’t grab their attention from the start. 5% of viewers will stop watching after a minute and 60% by 2 minutes.

Lets have a look at one of the most successful online brand explainer videos ever, with over 23 million views on YouTube, “DollarShaveClub.com – Our Blades Are F***ing Great!”. Firstly, the length of the video is not too long and not too short. 1 minute 30 seconds, enough time to capture the audience’s attention, while not boring them to death. Secondly, the video has a personality. It tells a story that builds an emotional connection through humour and does not take itself too seriously. The humour is carefully crafted and not crude or offensive. Lastly, it explains itself clearly. The information is easy to digest and understand and didn’t bombard us with millions of stats and facts that potential customers do not relate to.

So, in a nutshell. Traditional TV as we know it is not dead but might be dying a slow death if it’s not evolving towards a personal viewing experience. Video is simple and easy to understand, aiding customer comprehension of products and services. The most effective videos are short and simple, extremely informative and create an emotional connection with potential customers.

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