Yaniv Axen has served as the CTO of SundaySky since cofounding the company. He manages technological concerns for strategic customers, directs the patent application process for SundaySky’s solutions and facilitates key partnerships.
The truth about doing business online today is that for many companies, increasing market share requires winning customers from competitors. Using online video to build business is one tactic that has been rapidly gaining popularity in the past few years. It delivers benefits that include personalization, competitive advantage and cost-effectiveness.
Below are seven ways video outperforms static web content in the ruthless competition for market share.
1. Video Attracts New, Relevant Search Traffic
No conversation about ebusiness is complete without discussing search engine optimization (SEO). An ebusiness cannot gain on a competitor until consumers know it exists and can easily find it through organic search. Today, ebusinesses that utilize video assets are at an advantage, since Google is structuring its search engine results to reward sites that include video. According to Forrester, any given video in an index of searchable keywords has a 50 times better chance of appearing on the first page of results than any given text page.
To better promote their video investments and derive the greatest SEO rewards, ebusinesses are making videos more accessible to visitors, scaling videos to reach long-tail keywords, and automating video production in order to have video available as soon as new products are introduced.
2. Video Assets Can be Easily Syndicated
Online video is usually channel agnostic. By syndicating video properties to multiple sites — including YouTube, the second largest search engine today — ebusinesses extend their reach to innumerable eyeballs. In addition to traditional channels, online video plays equally well via mobile networks, TV, and in-store screens. It is a cost-effective way to maintain brand consistency and strengthen consumer awareness.
3. Videos Encourage Sharing
Videos are far more likely to be passed and shared than text-based pages. Additionally, a video thumbnail on a social media platform — Facebook, for example — grabs more attention than static text and often results in more comments, more “Likes,” and more traffic to the brand’s website. When you like or share a video link, a thumbnail appears on your wall and is also seen by your friends.
According to a study from YouBrand, pictures and video within Facebook get engaged with and clicked more often than just text and questions.
4. Video Engages Site Visitors
Video provides a familiar user interface for site visitors. When videos are properly produced, they captivate the user. Instead of the need to navigate, scroll and click to access information, the video is a one-stop shop for information. It takes less energy than the hassle of reading and the user is engaged until he or she is ready to follow an embedded call-to-action. Today’s automated video production platforms easily enable this flow, in many cases directing visual and auditory calls-to-action that guide the viewer to a shopping cart.
5. Video’s “Halo Effect” Drives Conversions
Video can give customers an in-depth view of a product or a demonstration that quells any hesitancy they might have about purchasing online. The peace of mind the customer gains from the video seeps into the way he or she feels about the brand and website overall, building trust and credibility. This is essential to gaining market share, especially for businesses that sell products with a lot of competition.
6. Video Increases Customer Loyalty
Video newsletters are more likely to attract consumer attention. By some estimates, the open rate for a video newsletter is two to three times higher than for a text-based newsletter. While many brands compete for consumer attention with the latter, those who employ the former stand out from the crowd. These video communications can be personalized for each recipient with individualized greetings, references to previously purchased items, or offers based on shopping history, geography and segmentation.
7. Video Creates Online Personalization
By improving and tailoring the customer experience, online retailers in every sector have increased customer loyalty, conversion rates and average order price. The quality of online personalization continues to rise and in many cases can rival or outperform the “live” shopping experience. This is a key factor in gaining market share, since consumers increasingly shop online but still express a desire for the personal touch and the social aspects of in-person browsing.
When prospects go to a store, they get recommendations and help from in-store staff who point them to relevant products. Video delivers this experience online, with far less variability and chance. With new technologies that offer personalized video created on-the-fly, ebusinesses can bridge the gap between live and virtual experiences.
8. Video Production Costs Are Falling, ROI Is Rising
Online video clearly has an impact on competitive advantage. But is it feasible for most ebusinesses? Thanks to today’s automated video production technology, the answer is “yes.”
Two decades ago, the market struggled to replace the labor-intensive process of website management. Today we hardly think about the steps required to update or add web content: Images and text are now template-based, database-driven and easy to manipulate.
Video production is experiencing a similar change. While many website owners once fought the limitations of manually produced videos — including slow production times and prohibitive costs — today’s solutions tend to be automated, cost effective and high quality. With relatively little human intervention, online video production can increase a business’s competitive advantage while creating a better shopping experience for the user.