When Dropbox introduced an explainer video on its website, it probably didn’t realize the powerful impact that the 120 second long promotional video would have on its number of users. Within a year, Dropbox managed to increase its conversion rate to 10%. The number of its users soared and it was able to boost sales by $48 million.
That’s when explainer video got recognition as a conversion optimization tool.
Recent video marketing statistics suggest that animated explainer videos have been gaining rapid popularity over television advertisements. Read on to learn why.
1. The Decline of the Idiot Box
Uptill about 7 years ago, the “idiot box” took care of all your entertainment. With the rise of digital media, however, many people have been switching to tablets, laptops and mobile phones to pass their leisure time. You’d be surprised to know that over the past year, there has been a decline of 7.5 hours in the overall time spent watching TV (Read Nielson’s report to find out more)
That’s not all! Another report published by the Business Insider Intelligence states that a large proportion of people have unsubscribed from cable TV. This is largely due to the rising popularity of Internet television. Who would want to pay increasingly large amounts of bill for a cable subscription when you can watch free TV online? According to Nielson’s report, 45% of youngsters prefer to watch TV shows online and 40% of households have switched to Netflix. Viewing of online videos has also risen by 11 hours each month.
All these numbers have given marketers enough reason to shift spending from TV advertising to online advertisements.
2. No Unwanted Interruptions
We all detest TV ads for being annoying intrusions in the midst of our favorite programs. I can totally feel your frustration when you’re forced to sit through the seemingly never-ending commercial break.
In contrast, you would click to watch an explainer video only if you want to.
3. Commercial Break = Snack Time
We all have our ways to use our time ‘productively’ during commercial breaks. Some of you might fix yourselves a snack or have a drink, whereas some of you might simply flip to another channel. Social animals like me find it an ideal time to browse through our Facebook newsfeeds and update our Snapchat story.
The scenario changes with explainer videos. They don’t get ignored because they’re viewed by a wholly interested audience.
4. Effective Conversion
TV ads aren’t always viewed by the intended target audience so they can’t boast of a high conversion rate. However, since online video advertisements are viewed with interest by choice, they are more effective at conversion optimization.
Internet Retailer’s video marketing statistics states that you would be 85% more likely to buy a product/service and 52% more confident about your decision if you watch an explainer video. Comscore further claims that you would stay on a website for 2 minutes longer on watching an online ad.
What if you’re targeting business executives? Then animated videos will give even better results! According to Forbes, 75% of executives watch promotional videos at least once a week and 38% of them go ahead to call the service provider.
5. Lost in ‘Advert-land’
You know that feeling when your head feels like it’ll burst any minute, thanks to the bombardment of hundreds of ads in a succession? And you can never seem to remember which brand’s ad said what! Well that happens because your brain tends to jumble up the various stimuli that it has been exposed to.
This issue is eliminated with explainer videos since only one is placed on a website.
6. More Value for Lesser Bags of Money
You can produce explainer videos for half the cost required to make a TV ad and get double the results. A comparison was done by Business Insider Intelligence of the proportion of money spent revealed that 42.1% is spent by TV marketers on advertising campaigns while only 27.1% is required to run digital advertising campaigns. However, the time spent watching TV is only 38.4% while 45% of people’s time is spent watching digital media.
7. The Gimmick Game
TV ads are largely constrained by time so they rely primarily on gimmicks to grab attention. For instance, showing you exaggerated images.
Although explainer videos aren’t very long either, they’ll provide you with greater scope for communicating detailed information while simultaneously using a variety of creative techniques and to generate interest.
8. They’re everywhere!
Thanks to the worldwide web, you can view explainer videos while sitting in any corner of the world. In fact, you will also find it easy to expand your clientele base as viewers from any part of the world might become your consumer on viewing your firm’s animated video.
In contrast, a limited audience is exposed to TV ads as they run in specific regions only.
9. Brand Evangelists
Positive word-of-mouth spreads as fast as women’s gossip! And it’s easier to generate greater interest through explainer videos as they can be shared instantly through viral marketing on various social networking websites such as Facebook, Twitter and Linkedin.
So folks it’s time to start reaping the benefits of digital advertising. Give TV advertisements the backseat and let animated explainer video specialists, such as Vidzio transform the way you reach out to your target audience!