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Behold the Power of Video . . . Again.

First video killed the radio star. Now it’s revolutionizing the way that consumers research and buy products. Here’s why your company should pay attention.
The power of video marketing
photo by Carlos Sancho

Tablet manufacturers shipped a record 52.5 million units — iPads, Kindles, Galaxies, and other brands — worldwide during the fourth quarter of 2012, a surge of 74.3 percent over the previous quarter, according to research firm IDC. Meanwhile, Gartner predicts that global sales will balloon to 326 million units in 2015 — an estimate that may be too conservative based on 2013 sales numbers in the U.S. alone.

But you already know that tablets have rounded the adoption curve. And you already know that you’ve got to adapt your business model accordingly. But what about your marketing and advertising strategies? Are they shifting fast enough?

“Banner ads on smartphones don’t work. But video does,” writes Darcy Travios on Forbes.com. “And it works even better on the fastest-growing category of mobile devices: tablets.”

According to Ad Age, more than half of tablet owners use them to watch videos. In December, Americans watched 11.3 billion video ads on their tablets, PCs, and mobile phones, up 59 percent in one year. By 2016, mobile-device users will access 70 percent of all video on the Internet — and when they do, they’ll be buying stuff.

Internet Retailer reports that those who view a video are 144 percent more likely to place that item in a shopping cart. And 52 percent say that watching the video makes them more confident about their purchasing decisions,” Travios writes. In addition, “comScore reports that e-commerce visitors who watch a video are 64 percent more likely to make a purchase than those who don’t.”

The bottom line: Companies with captivating video ads have a competitive advantage — one that’s helping them sell more to tablet users who are “rich and educated,” CNN reports.

“The days of direct consumer advertising is dwindling, and the advent of marketing through storytelling has arrived,” writes Kerrin Sheldon (@kerrinsheldon), cofounder of Humanity.TV in Fast Company. “This will propel online video even more into the world of serious profits.”

#buildvideo

THE PLUS

What’s better than corporate-sponsored video? User-generated video. This is the philosophy behind Toyota’s Auto-Biography campaign on social media. The car maker invited customers to tell their Toyota stories through video, photos, and text. “Tens of thousands of owners did so and created a wealth of positive content and buzz around the brand,” writes Christopher Buchanan (@affablechap), director of the Open Innovation Center at Samsung Electronics, in Fast Company. “The appetite for online video is ravenous and growing. The challenge for brands is how to satisfy that demand efficiently. . . . How to inspire the creation of [user-generated] video content through example, contests or other ways, and how to curate that UGC to produce high levels consumer. The online savvy brands like Red Bull get it and are leading the way as marketers continue to shift money and attention to the online video.”

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