The future of the digital video marketing industry is sitting on $135 billion in the United States alone, according to a study by mobile video platform Magisto. The study’s $135 billion estimate includes expenditures on production, hosting, distribution, analytics, and staffing.
Magisto attributes this report to the shift in communication with the rising usage of digital video. “[Today], the rules of engagement have been almost entirely rewritten by the enormous influence of social media and the bottoms up culture of Millennials,” the study states.
Out of 545 anonymous marketing experts of small, medium, and large businesses surveyed, more than half revealed that they create video content at least once a week, while 26% said they do it daily. This indicates the massive shift to digital video in social media platforms like Facebook, YouTube, and Instagram, to name a few.
According to Scorpion chief marketing officer Corey Quinn, the digital media industry has agreed that video has become the most important form of media.
“Take a look at the dominant forms of social media and on-demand video (subscription services like Amazon, Hulu and Netflix) and watch how they’re moving — what they choose to focus on with each new update, feature and development,” Quinn added.
These improvements present efforts to keep up with the evolving landscape of content marketing. Video content presents advantages over traditional advertising, including emotional connections that promote positive responses among Millennials. Members of Generation Y expect transparency out of almost everything to satisfy their skepticism.
Marketers started investing in advanced content strategies to cater to these types of consumer behavior. NewsCred also conducted a study that found that Millennials give importance to being valued and being seen as an individual.
The study said that 64% of Millennials respond more positively to brands that tailor positive messages which address cultural preferences. Meanwhile, 62% shared the same sentiments when it comes to advertisements and content that present useful information that can solve everyday problems.
Trending marketing strategies like social media influencers and live streams have helped companies engage with their Millennial audiences. The generation likes engaging with faces, not names, hence the video content marking plays an important role in the marketing industry.
Millennials now make up the largest demographic in the U.S. at 74.5 million, which signals an obligation to cater to the first digitally native generation. Coming right after them are their Baby Boomer parents.
Interestingly, the two generations have a stark contrast in their perceptions of different types of advertisements. According to social marketing platform Olapic, Millennials pay attention to content (images and videos) that features real people. Boomers, on the other, hand like seeing the product or reading about the service.
As a generation who heavily relies on reviews and word of mouth, Millennials also like voicing out their product and service satisfaction be it through blog posts, “hashtagged” tweets, or Facebook status updates.
In conclusion, marketers do not have their work cut out for them when it comes to attracting Millennials. Instead of being seen as fans, this generation likes to be heard and to be active participants. They want companies to know what they like and what they do not like.
With the emergence of video content, companies can be more transparent and accessible to their young, skeptic customers. By reaching out to personable and reliable influencers, Millennials will feel more engaged when a brand fully becomes #relatable.