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Brightcove Aberdeen Whitepaper

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  1. 1. September 2012 Lights, Camera, Call-to-Action: Trends in Video Marketing The media theorist Marshall McLuhan famously noted, “the medium is the Research Brief message.” He meant that new forms of media have their own set of rules, Aberdeen’s Research Briefs and that content is ultimately developed that takes advantage of these rules. provide a detailed exploration McLuhan’s maxim still holds true today as marketers come to terms with of a key finding from a primary the powerful medium of video to engage with buyers through digital research study, including key channels. Between May and July 2012, Aberdeen surveyed over 100 performance indicators, Best- marketing and sales professionals about the use of Rich Media in external in-Class insight, and vendor prospect and customer communications, including video. We found that insight. Best-in-Class companies are more likely to use video in their content-based marketing efforts. This research brief considers the best practices these companies are adopting to get their message heard in Technicolor. Business Context: Of Medium and Message The challenge to be heard above the noise is in many ways the essence of Research Definition: Rich promotional marketing. Today’s competitive markets and multitude of Media for Sales and Marketing channels offer no refuge, and as seen in Figure 1, difficulty in differentiating in a “noisy” market is the top-most cited pressure by study respondents. Rich media is the use of visual, The other top pressures are in many ways typical marketing and sales audio, video, and interactive communications mediums, concerns; budgetary pressure (i.e. the need to do more with less), lead including video, audio, online conversion, and market segmentation. Adoption of video-based marketing chat, web meetings and screen can serve to address many, if not all, of these pressures in various ways. sharing, and web events. Figure 1: Top Pressures driving adoption of Rich Media in sales and Marketing Competitive “noise” in our target market; 54% difficult to differentiate our solution Marketing / sales budgets 38% stretched too thinly We are not effective enough 37% in converting leads to sales All Respondents Not effective enough in 30% identifying the best prospects 0% 20% 40% 60% Percentage of Respondents, n = 110 Source: Aberdeen Group, July 2012 This document is the result of primary research performed by Aberdeen Group. Aberdeen Group's methodologies provide for objective fact-based research and represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.
  2. 2. Lights, Camera, Call-to-Action: Trends in Video-based Marketing Page 2 Of course, video has been used in marketing since the earliest days of TV Defining the Rich Media for and its effectiveness as a means of broadcast communications is self-evident. Sales and Marketing Best-in- What’s changed now is the accessibility of video, both for creators and Class consumers. Today, many of us carry a high-definition video camera around Aberdeen used four key in our pocket at all times in the form of a smartphone. Sophisticated, pro- performance criteria to or near pro-grade camera equipment and editing software is now relatively distinguish the Best-in-Class cheap and easy to use; in other words it’s never been easier to generate (top 20% of aggregate video of respectable visual quality. In the meantime, among online performers) from the Industry consumers, watching video content on computers has become just as Average (middle 50%) and common as watching video on television, over half of global online Laggard (bottom 30%) consumers (56%) watch that video content on a mobile device at least once organizations. The metrics a month.1 As high-speed mobile internet access becomes ubiquitous, used to define the Best-in- consumers can practically create and watch video anywhere, anytime. Class among these firms are: √ 89% customer retention The accessibility of video opens new possibilities for marketing to address rate, compared with 62% the key pressures noted above by cutting through the noise, differentiating and 21% among Industry (sometimes by the very use of video), and generating marketing Average and Laggard firms. conversions. √ 28.4% year-over-year increase in total company revenue, vs. 7.4% for Video-based Marketing Drives Conversions Industry Average Best-in-Class companies (see sidebar for definition of the Rich Media for companies and a 1.4% Sales and Marketing Best-in-Class) are 38% more likely than all other decline among Laggards. companies to use video in their external communications (55% vs. 40%). √ 11.8% year-over-year Marketing’s contribution to sales-forecasted pipeline for Best-in-Class increase in Marketing’s companies was over twice that of all other companies (40% vs. 17%) and contribution to Sales- customer retention for the Best-in-Class was 89% compared with 48% for forecasted pipeline; all others. Additionally (and tellingly), Best-in-Class companies achieved Industry Average and twice the website conversion rate of all other companies (4% vs. 2%). Laggard companies reported a 2.3% increase and a 0.1% decline, respectively. √ The average sales cycle was shorted by the Best-in- Class by 7.4%, and by Industry Average firms by 0.2%; Laggards report an average lengthening of the sales cycle of 6.2%. 1 The Nielsen Global Survey of Multi-Screen Media Usage; http://blog.nielsen.com/nielsenwire/global/global-report-multi-screen-media-usage/ © 2012 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  3. 3. Lights, Camera, Call-to-Action: Trends in Video-based Marketing Page 3 Figure 2: Video-based Marketing Adoption Rates Sector Definition: Video 60% Best-in- Marketing 55% Percentage of Respondents Class Video-based marketing is the use of pre-recorded video, 50% All Others animations, or presentations with audio that are used for external prospect and customer 40% communications. Videos can be 40% used on third party sites, like video sharing sites and social networks, as part of the external 30% web experience, or shared directly with prospects and customers. 20% Use video-based medium for external communications n = 110 Source: Aberdeen Group, July 2012 While marketing awareness is the most prevalent use case for video-based marketing, Best-in-Class companies are not only more likely to use video, they’re increasingly more likely to utilize video throughout the buyer’s journey from awareness, to consideration (i.e. mid-funnel), through to post- sales. For example, 60% of Best-in-Class companies are using video as a means of driving marketing conversion, either by gating the video content itself, or using video together with a call-to-action, compared with 48% of other companies. Video is less often used during the active sales cycle when one- to-one rather than one-to-many conversations are the rule, but here again Best-in-Class companies are more likely to utilize video during the sales cycle. For example, video can be used to either start the conversation with a prospect (i.e. secure initial call or meeting), or to increase prospect / customer intimacy via personalized videos recorded with a webcam. The post sales use case is also compelling, with companies using video to provide instructional support. Several hardware providers are shipping equipment with QR codes that launch how-to and other instructional videos when scanned with a smartphone; a video “Read Me” if you will. © 2012 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  4. 4. Lights, Camera, Call-to-Action: Trends in Video-based Marketing Page 4 Figure 3: Video Throughout the Buyer Journey Marketing 67% Awareness 55% Marketing 60% Conversion 48% Marketing 53% Nurturing 36% 47% Sales Qualified 30% 33% Sales Closing Best-in-Class 12% All Others 33% Post Sales 18% 0% 25% 50% 75% Percentage of Respondents, n = 110 Source: Aberdeen Group, July 2012 Horses for Courses Along with the mix of uses for video comes a mix of capture and production approaches. Figure 4 below show the adoption rate of various modes of video capture and creation. The most popular mode is screen capture with audio, as this requires little to no additional hardware beyond a typical laptop and easy-to-use, often free software. However, the Best-in- Class are more likely to utilize professional-grade production (both in-house and outsourced). The important thing to note is that these modes aren’t mutually exclusive: a company may use professional resources to produce a corporate or product introduction video, or video for use at an event or conference, while using screen capture to share demos or short presentations with prospects and customers. © 2012 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  5. 5. Lights, Camera, Call-to-Action: Trends in Video-based Marketing Page 5 Figure 4: Horses for Sources – Pro-grade and DIY Video Production Both in Use 38% Screen capture with audio Video for Marketing Fast Fact 42% √ The average length of a Professional-grade 38% corporate video is 3.5 production (in-house) minutes 26% √ Best-in-Class companies Personal-grade equipment 29% are 50% more likely than all and production (camcorder, etc.) 35% others to host video on their web site (81% vs. 53%) Professional-grade 25% production (outsourced) 22% Best in Class 25% All Others Webcam 16% 0% 10% 20% 30% 40% 50% Percentage of Respondents, n = 110 Source: Aberdeen Group, July 2012 Best-in-Class Video Marketing Capabilities Video comes with some of its own rules, while adhering to some of the ‘old’ rules as well. Best-in-Class companies deploy a number of video-based marketing capabilities at a higher rate than other companies. Shoot Once, Show Everywhere Keeping in mind that marketing awareness is the number one use case for video, marketers need to be able to get their videos where they can be viewed and shared, namely video sharing sites and social networks, including of course YouTube and Facebook. By a 91% margin as seen in Figure 5, Best-in-Class companies are more likely to have the ability upload videos to these sites without additional transcoding / format conversion. But as noted above, Best-in-Class companies are more likely to use video for more than just awareness; it’s a vehicle for conversion, prospect engagement, and customer intimacy. As such, 60% of the Best-in-Class have the ability to select and distribute video assets on both public and private channels, compared with 38% of all companies. Video is also mobile. It’s now commonplace to access everything from short clips to entire movies on a smartphone or tablet. Call it the last mile of deliverability; Best-in-Class companies are 33% more likely than all others to ensure delivery across multiple hardware platforms, and mobile and social networks (53% vs. 40%). As a marketer, you simply don’t know what device your buyer will be using to access your content; Best-in-Class companies © 2012 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  6. 6. Lights, Camera, Call-to-Action: Trends in Video-based Marketing Page 6 are less likely to take the risk that they won’t be able to see what you’re showing them. Figure 5: Shoot once, distribute anywhere 70% 67% Best in Class All Others Percentage of Respondents 60% 60% 53% 50% 40% 40% 38% 35% 30% 20% Ability to upload Ability to select Cross-device delivery / to video sharing and distribute distribution / syndication sites without video assets to multiple hardware additional transcoding on both public and platforms, mobile, (i.e. “one-click” posting private channels and social networks to social networks) n = 110 Source: Aberdeen Group, July 2012 There are also significant differences between Best-in-Class and other companies when it comes to the video-based marketing experience. Several capabilities shown in Figure 6 suggest the importance of interactivity. Fifty percent (50%) of Best-in-Class companies have the ability to make video content interactive and 47% are incorporating ‘click-to-action’ links within the video (i.e. hyperlinks placed within the video content), compared with 33% and 27% of all other companies, respectively. But regardless of whether companies are using interactive video or embedded links, they should be thinking about what they want the viewer (i.e. the buyer) to do next. In other words they need to think in terms of call-to-action. © 2012 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  7. 7. Lights, Camera, Call-to-Action: Trends in Video-based Marketing Page 7 Figure 6: Lights, camera, call-to-action: Content rules still apply 50% 50% 47% Best in Class Percentage of Respondents All Others 40% 33% 33% 30% 27% 25% 21% 20% 15% 10% Ability to make Integrated click-to- QR codes used to Ability to auto- video content action links launch videos generate interactive embedded in video recommendations for next action or content for viewers n = 110 Source: Aberdeen Group, July 2012 Performance Management Best-in-Class companies are more than twice as likely as all others to capture user-level utilization information about video assets, such as opens, length of view, and next actions (60% vs. 29%). This capability can significantly boost the value of video as a marketing asset by serving as a proxy for engagement and interest. This data can be incorporated into lead scoring or prioritization within the marketing automation or CRM system. This is also consistent with broader trends we see in performance management of content-based marketing; 67% of Best-in-Class companies say their rich media deployments provide extensive visibility into content engagement and 58% track the performance of individual rich media assets compared with 37% and 35% of all other companies, respectively. Technology Aberdeen’s study did not consider the equipment and software used to capture and edit video content, focusing instead on management of video from a marketing and sales perspective. In this area Best-in-Class companies are five and a half times more likely than all others to use an enterprise video management platform as seen in Figure 7 below. Such platforms automate many of the capabilities discussed above. While many organizations are leveraging traditional enterprise content management (ECM) systems to manage video, enterprise video management platforms have emerged to address the unique requirements and opportunities associated with video content management. They are particularly effective at several stages of video lifecycle: • Distribution and management. As noted above, video introduces several unique distribution requirements, including the © 2012 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  8. 8. Lights, Camera, Call-to-Action: Trends in Video-based Marketing Page 8 need to distribute assets on third party channels (i.e. social). Video also introduces unique content search and access challenges. Search metadata must be carefully managed to ensure findabillity and search engine optimization. • Reporting and analytics. Video also introduces unique reporting and analytics requirements. Within the enterprise, the ability to Demographics track the percentage of individuals viewing videos to completion is Of the 110 responding often critical in learning applications for compliance purposes. As organizations, demographics noted above, this same capability gives marketing and sales valuable include the following: insight about viewer engagement that can be used to score and / or • Job title: Manager (26%); prioritize leads. Senior Management (23%); EVP / SVP / VP (18%); Figure 7: Enterprise Video Management Platforms Meet Unique Director (12%); General Content Management Requirements Manager / Managing Director / Principal (7%); Other (14%) 80% 73% Percentage of Respondents • Department / function: Best-in-Class Marketing (49%); Business 60% Development / Sales (27%); All Others Corporate Management 40% (7%); Other (17%) • Segment: Software (27%); IT 20% Consulting / Services (18%); 13% Media / Marketing Services (14%); Financial Services / 0% Insurance (7%); Industrials Enterprise video (7%); Computer / Telecom management platform Equipment & Services (5%); n = 110 Other (22%) Source: Aberdeen Group, July 2012 • Geography: Americas (80%); APAC region (8%); and Summary and Recommendations EMEA (11%) Every marketer knows how difficult it can be to rise above the noise, even with the most well-developed messaging and creative. Your buyer is • Company size: Large inundated with information and offers, the majority of which never get enterprises (annual revenues viewed. That’s why so many Best-in-Class marketers are incorporating above US $1 billion)- 11%; video into their content-based marketing repertoire. midsize enterprises (annual revenues between $50 Video presents new rules in terms of content development. Firms should million and $1 billion)- 21%; think more about the story with video and keep content concise; the average length of a corporate video is 3.5 minutes. Marketers should also and small businesses (annual align the means of video capture with the use case. Sometimes time-to- revenues of $50 million or deliver trumps production value, or as the saying goes, perfect can be the less)- 70% enemy of good. For example, if you’re using video to capture the buzz at your customer event or trade show, desktop video editing may prove to be © 2012 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  9. 9. Lights, Camera, Call-to-Action: Trends in Video-based Marketing Page 9 “good enough” to include the video in your daily wrap up blog post. In other cases, a professional-grade video is more appropriate, such as when it will be used on the web site or at marketing events. When it comes to use cases, Aberdeen’s data shows that videos go beyond awareness to drive marketing conversions through the funnel, for engagement during the sales cycle, and in post-sales customer engagement and support. But some (relatively) old rules of content-based marketing still apply. Videos used in the marketing funnel should include a call to action or next step, either implicitly or explicitly – keep the end in mind. Marketers should also establish practices to track the utilization and performance of video assets (as they should do with other marketing assets). Not only is this key to understanding what content is working and which is not, but it can be used to gain insight into buyer engagement. For more information on this or other research topics, please visit www.aberdeen.com. Related Research Marketing Lead Management: From the Revenue Performance Management Top of the Funnel to the Top Line; July Demystified; June 2012 2012 B2B Social Media Marketing: Are We Web Experience Management: From There Yet?; March 2012 Content to Customer; June 2012 Sales and Marketing Alignment: The New Power Couple; December 2011 Author: Trip Kucera, Sr. Research Analyst, Marketing Effectiveness (trip.kucera@aberdeen.com) LinkedIn @TripKucera For more than two decades, Aberdeen's research has been helping corporations worldwide become Best-in-Class. Having benchmarked the performance of more than 644,000 companies, Aberdeen is uniquely positioned to provide organizations with the facts that matter — the facts that enable companies to get ahead and drive results. That's why our research is relied on by more than 2.5 million readers in over 40 countries, 90% of the Fortune 1,000, and 93% of the Technology 500. As a Harte-Hanks Company, Aberdeen’s research provides insight and analysis to the Harte-Hanks community of local, regional, national and international marketing executives. Combined, we help our customers leverage the power of insight to deliver innovative multichannel marketing programs that drive business-changing results. For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 854-5200, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com. This document is the result of primary research performed by Aberdeen Group. Aberdeen Group's methodologies provide for objective fact-based research and represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc. (2011a) © 2012 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897

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