Product, educational and instructional videos remain popular

Consumer demand for video content is growing.
So how do companies meet demand, what works for their video strategies, and what resonates with audiences?
Here are some key findings from Wistia's latest study.

The demand for videos in marketing is growing. According to WyzowlOpens a new window 89% of consumers want to see more videos from brands this year. To understand how companies are meeting the increasing demand for video, what works for their video strategies, and what resonates with viewers, Wistia conducted a study. The biggest advantage is that the audience wants to learn how to use the product and gain industry knowledge, and creating instructional videos doesn't require a large budget. Below are some additional findings from the study.

Video is an important part of the marketing strategy

According to the study, videos are an important part of the marketing strategy for most companies (93%). Only 7% of respondents said this was not an important part of their marketing strategy.

Many companies use videos primarily to generate leads and drive sales or to educate potential customers about their products and encourage them to buy. About 38% use videos to generate leads and drive sales, while 31% use them for product training and adoption. About 17% use it for brand awareness and PR and 8% for social media engagement.

Although most companies are eager to produce more videos this year, only about 57% are preparing to devote more resources to their video creation efforts.

See more: Video Commerce for Business: A Comprehensive Guide

Most of the videos created last year were product and instructional videos

The study found that most videos were created by individuals and teams within the company. While 62% of videos were created by individuals within the company, 46% were created by internal video teams or producers. About 21% were created by freelancers and 16% were created by video production agencies.

On average, small businesses created about 15 videos last year, medium businesses created 84 videos, and large businesses created 118 videos. As the size of the company and company increases, the number of videos created also increases.

What kind of videos did companies create last year? Product videos, educational or instructional videos, webinars and live events were the most popular and are still the top choice this year.

Types of videos companies created in 2023 and want to create this year

Source: Status of the video 2024Opens a new window

However, more companies are planning to create more short social videos, testimonials, sales videos and original series this year.

When it comes to video length, the average length of most videos in 2023 was either under three minutes or between five and 30 minutes. Compared to last year, companies created 7% more videos shorter than a minute, 12% more videos between 1 and 3 minutes, and 5% more videos between 3 and 5 minutes.

Time and bandwidth are the most demanding aspects of creating videos

Companies face several challenges when creating content. Time and bandwidth are at the top of the list with 61% of respondents. This is followed by team size, resources and technical capabilities (44%) and cost and budget (36%).

This is where artificial intelligence (AI), particularly generative AI, can help. While only 18% of respondents are integrating AI tools into their video production workflows, 66% are looking forward to using generative AI to create videos this year. Here's how they're using or planning to use AI for videos.

How companies use or want to use AI for videos

Source: Status of the video 2024Opens a new window

Most companies primarily distribute videos on their websites and via email

Distributing videos is just as important as creating them. Where do companies share the videos? About 67% of companies create videos primarily for their websites, while 49% share videos via email. About 43% and 40% of companies distribute videos on LinkedIn and YouTube, respectively.

Companies usually have several distribution channels for social media videos. According to Hootsuite, companies publish videos on at least two of the four platforms: TikTok, Instagram, Facebook and LinkedIn. They also post videos about three to five times a week.

See more: How Conversational Video Storyboards Increase Engagement

Consumers are watching more videos

In terms of performance, the study found that overall video views across companies of all sizes increased compared to last year. This shows that videos are a worthwhile investment even for small businesses to promote the brand to the audience. A key trend observed over the past three years is that companies get the majority of their video views in the first and fourth quarters each year. The second and third quarters have the fewest views.

Additionally, videos longer than an hour have the maximum watch rate (58%), followed by videos 30-60 minutes long (50%). Longer videos also tend to get more clicks per page visit, and shorter videos may not get the highest play rates on a webpage.

In terms of engagement rates, videos longer than a minute have an average engagement rate of 50%, while videos 1-3 minutes long have an average engagement rate of 48%. The average engagement rate appears to decrease as videos length increases, with videos over 60 minutes having a 17% engagement rate.

An important measurement is the conversion rate. This is the percentage of viewers who find a conversion opportunity in a video, such as a CTA or form, and take a desired action. The study found that conversion rates tend to increase with video length. Videos over 60 minutes have an average conversion rate of 13%, while videos shorter than a minute have an average conversion rate of 1%. Conversion rates also depend on the position of the conversion opportunity. For example, videos with a chance of converting in the last quarter tend to have a higher conversion rate. However, a combination of video length and position can further influence conversion rates. For example, for videos between 5 and 60 minutes, it may be ideal to place conversion opportunities at the beginning of the video. However, videos shorter than five minutes and longer than 60 minutes have higher average conversion rates when the opportunity is placed at the end of the video.

Still, data shows that companies don't necessarily place conversion opportunities where they convert best. One thing is clear: there is a lot of room to optimize conversion opportunities for better conversion rates.

Bring away

No matter the size of the business, videos play an important role in introducing it to the target audience and converting prospects into paying customers. As consumers demand more video content to support their purchasing decisions, brands and businesses should take note of these insights and devote resources and effort to leveraging video content to maximize their revenue.

How do you use videos to maximize your sales? Let us know FacebookOpens a new window