In 2024, small businesses are increasingly investing in advertising videos as an effective way to engage their target audience, build brand awareness, and drive more sales. Let’s Explore why small businesses are embracing advertising videos and how you can make the most of this marketing strategy.
1. Low Cost of Advertising
In today’s digital era, the rise of social media platforms has revolutionised the advertising landscape, particularly for video ads. In the past, television was the only medium for video advertising, often accompanied by high costs. Now, platforms like Facebook and YouTube have made it easier and more affordable for everyone to advertise.
They offer an incredibly low entry point for ad spend – you can start with as little as $5 a day. This affordability allows advertisers, especially small businesses, to experiment with targeting options, honing their strategies without a significant financial burden.
2. Low Cost of Production
Advancements in video production technology have led to a significant reduction in the cost of creating advertising videos.
Nowadays, relatively budget-friendly mirrorless cameras, wireless microphones, and LED lighting have made producing high-quality video ads easier and more affordable than ever. This is a big change from the high video production costs 10 or 20 years ago.
This shift has opened the doors for more than big companies with deep pockets. Small businesses with tighter budgets can now also take advantage of video advertising and reap the benefits.
3. Videos are more engaging than other options
Videos allow businesses to convey their message in a visually appealing and memorable way, leaving a lasting impression on viewers.
They also offer an unmatched ability to demonstrate products or services in action, providing a clear, engaging perspective that text or images alone can’t match. This dynamic presentation allows potential customers to see the real-world application and benefits, building trust and credibility. This often leads to increased conversions and sales as customers feel more informed and confident in purchasing decisions.
4. Consumers Prefer Video
Videos have rapidly become the preferred medium for content consumption, revolutionising our digital interactions. This trend is fuelled by video’s ability to offer engaging, dynamic experiences, which resonate with the modern consumer’s preference for quick and interactive content.
Platforms like YouTube, TikTok, and Instagram are prime examples of the growing popularity of both long and short-form videos. These platforms not only cater to various needs – from education to entertainment – but also significantly shape trends and influence consumer behaviour.
A recent study by Wyzowl brings this point home: an impressive 91% of consumers desire more video content from brands.
Moreover, 84% of consumers acknowledge that watching brand videos has swayed their purchasing decisions.
This shift towards video content reflects a change in consumer preferences. It highlights the profound impact videos have on marketing effectiveness and brand engagement.
5. Videos have high shareability and virality
One of the most compelling attributes of advertising videos is their inherent shareability and viral potential. They are easily shareable on social media platforms, allowing small businesses to broaden their reach and attract a larger audience.
One example of an advertising video going viral is Volvo’s “The Epic Split” video. This visually striking video, which shows Jean-Claude Van Damme performing an incredible split between two reversing Volvo trucks, has amassed over 119 million views on YouTube. Its enduring appeal is evident in the fact that viewers continue to discover and engage with this video, even a decade after its release.
On the other end of the spectrum, demonstrating that viral success isn’t reliant on high budgets is Asus’ “Low Battery vs Speed Rapper” video. Despite its modest production value and likely minimal budget, this creative and humorous video has amassed over 30 million views on YouTube. This example illustrates how an exciting concept with ingenuity and relatability is all you need to create viral content.
6. Videos have a high return on investment
While investing in advertising videos may require an upfront cost, the return on investment (ROI) can be significant for small businesses. According to studies, videos can lead to higher click-through rates, engagement, and conversions compared to static images or text-based ads.
Specifically, 92% of marketers report a good ROI from video content, an all-time high and a clear indicator of its effectiveness.
Meanwhile, 87% of marketers have observed a direct, positive impact on sales due to video marketing.
In the B2B sector, 73% of marketers acknowledge a positive ROI effect from video marketing.
Additionally, videos have a longer lifespan compared to other forms of content. Once created, a video can continue to generate leads and drive sales for an extended period. This long-term value makes video marketing a cost-effective strategy for small businesses.
Real-life Success Stories of Small Businesses
Numerous small businesses have experienced remarkable success through their advertising videos. For example, Dollar Shave Club, a subscription-based razor company, gained widespread recognition and a large customer base through their humorous and relatable videos.
Similarly, Blendtec, a blender manufacturer, went viral with their “Will It Blend?” video series, showcasing their product’s capabilities in a fun and entertaining way.
These success stories highlight the power of advertising videos in elevating a small business’s brand and capturing the attention of potential customers. Any small business can achieve similar results by thinking creatively and effectively conveying its unique value proposition.
For more tips on how to creating a winning video marketing strategy, check out this article.