Consumers who watch online videos as part of their shopping experience are up to 85% more likely to buy those products.
Hollywood, CA (PRWEB) April 15, 2013
A recent report by Social Media Examiner says that 76% of marketers in the United States plan to add videos to their sites, which places their importance firmly over other forms of social media. According to Adam Hudson, CEO of Fire Starter Videos, a Hollywood based corporate animation company, the reason is simple.
"The great thing about explainer videos, particularly animated videos, is that they tell consumers exactly what a company does quickly and in a way that makes it easy to understand. The art of explanation is only now revealing itself as companies realize that they have an ever decreasing window of opportunity to get their messages through to consumers with shrinking attention spans."
In a recent study by Invodo, 52% of customers reported that watching an online video makes them far more confident about a product before buying it while another study by Business Insider revealed that consumers who watch online videos as part of their shopping experience are up to 85% more likely to buy those products. This data is not only supported in the realm of online retail though. If you look at thriving online storage company Dropbox, their webpage has only two major components: an explainer video and a download button. Dropbox has gained a staggering 100 million users in the last 5 years by using the video on their front page as a viral marketing tool. According to a recent article on Business Insider, the video has led to a 10% increase in sign-ups or an extra $48 million in revenue per year.
Until recently, the price of producing quality animated videos for businesses may have been what held many companies back. In the United States, prices range from around $3,000 to $30,000 for a 90 second video depending on the provider and degree of customization and detail.
When asked about price, Hudson said,
“At Fire Starter Videos, we have experienced tremendous growth because we have challenged many of the more established studios not only on price but on quality as well. Although we charge just over $3,000 for a 90 second video, which includes everything from writing the script to providing professional voice over and the animation itself, our production values are on a par with studios charging ten times as much. As a result we have worked for everyone from small businesses, to tech companies in Silicon Valley, to large Fortune 100’s like MaterCard, and NGOs like UNICEF.”
The efficacy of animated videos can't be denied. Studies show that a majority of people retain as much as 68% more information from videos than from text alone, but retention is not the only attraction to marketers. Animated videos require no actors and can be changed or edited at any point in the future without the time constraints and cost of organizing reshoots and talent.
According to ComScore, every day in the United States nearly 90 million people watch over 1.2 billion online videos. And, according to a report by Cisco, the number of online video viewers will double in the next three years.
"Info-tainment" is on the rise. Of the 45% of Americans who already have smartphones (PEW Internet & American Life Project), 92% report sharing videos (Invodo). In other words, the potential for a 90-second explainer video to "go viral" has reached the "virtual pandemic" stage.
The numbers are clear, yet according to Kantar Media, only 24% of national brands are using online videos for marketing. With YouTube usage on the perpetual upswing and online video accounting for half of all mobile traffic (Invodo), the time for companies to add online video marketing to their advertising budget is now.
Fire Starter Videos is one of America’s leading corporate animation companies and specializes in the creation of animated videos, explainer videos, whiteboard videos, and demo videos for clients ranging from MasterCard to UNICEF. To view examples of their work and commission a video, please visit their website at http://www.firestartervideos.com or email Adam at info(at)firestartervideos(dot)com.