The Era of Video Marketing
The first industrial revolution introduced steam engines and irrevocably altered the economy. Now we stand in the time of the fourth industrial revolution, the digitization of society, which has led to unprecedented rates of development and volatility. In a world where digitization and technology have become almost ubiquitous, communication has evolved from being a mere exchange of information into an economic and social integrator transcending global communities and cultures.
With the advent of social media comes the dawn of the era of video streaming, where individuals take digital communication to be a natural part of their professional and personal lives. This journal looks at the developments and opportunities in this era, as well as explore the rise of video marketing and how companies may capitalise on it.
The Digital Transformation
We are amid Industry 4.0— the fourth phase in the industrial revolution where digitization plays a key role in the automation of manufacturing and in altering the way people live and communicate with each other. Breakthroughs in Artificial Intelligence and the Internet of Things (among others) are evident in the digital communication space as social media continues to take the spotlight as the ‘go-to’ avenue to converse and exchange information in the most creative yet strategic ways imagined.
The Rise of an Era
Social media has become an integral part of many lives. According to DataReportal’s Digital 2022 Report, more than half (58.7%) of the world’s total population are active social media users. On average, people spent nearly 7 hours per day using the Internet, and 2.5 of those hours on social media. Some of the primary reasons behind social media usage include keeping in touch with loved ones, keeping up with the trends and finding inspiration, communities, products, or services.
Internet users, while Facebook has an advertising reach of 72.4% of Facebook’s monthly active user base. Instagram, Twitter and TikTok also allow companies to advertise to a wider audience, with advertising reaches of 29.0% and 9.3% (of total Internet users) and 19.4% (of total Internet users, age 18+) respectively. The potential outreach these platforms offer is immense. Using online advertising through social media platforms is the next step that many companies have taken or are planning to take.
Video Marketing is King
Influencer marketing is a form of social media marketing that involves product placements and endorsements from online creators. Influencer marketing makes the advertisement seem more genuine and appealing, and leverages on the popularity of the influencer to reach a wider audience. According to Statista, influencer marketing spending in the United States was forecast to reach a substantial US$ 3.7 billion in 2021, with Instagram being the most popular platform of choice. Video marketing brings many benefits, from engagement of consumers to increasing spread and reach. With all of these, it comes as no surprise that video marketing has become immensely popular amongst companies. In a 2021 report, Wibbitz (an online video creation software company) noted that 56% of marketers surveyed are currently implementing video in their content strategies while 61% planned to do so in the future. Video marketing, if done well, will grant companies an edge over their competition.
Data as a Driver of Video Content Strategy
To maximise the benefits of video marketing, data must be used to formulate content strategies. The Forbes Agency Council shared that data will drive video content strategy and optimization for each social media platform. Video production will correspondingly grow at a faster pace as video is considered to be one of the top ways to emotionally connect with a consumer. Additionally, data through research may aid companies in defining their target audiences and generating new leads, especially from the generations that dominate the online space, i.e. Millennials (people born between 1981 and 1996) and Generation Z (also known as ‘Gen Z’, born between 1997 and 2012). These two age cohorts are also known as Digital Natives because they grew up in the era of ubiquitous technology, including computers and the Internet. Gaining information about their target audience can help a company to market themselves in ways that are more appealing to that audience.
Data is crucial in monitoring the performance of any content vis-à-vis a company’s strategic objectives established during the initial stages of the marketing journey. Basic features in analytics are often provided by the platforms to aid companies in determining the right audiences and content. The engagement metrics used in social media, such as the number of followers, impressions and likes, can indicate performance, and help in steering strategy. Data-driven video content is therefore an essential tool for companies and individuals to broadcast themselves on the right platforms in an efficient and creative manner. Contact Spire today to know more about other trends and insights essential in the evolving era of video marketing