- Companies are set to spend $135 billion on online video in 2017, per research released today by Magisto and made available to Marketing Dive. This amount is almost 2x the $71 billion companies will spend on TV spots and 1.5x the $83 billion what will be spent on digital ads.
- The report highlights the shift from an era of branding, which was dominated by agencies and ad spots, to what Magisto calls “belonging,” which is more about engagement through marketing channels such as social media and in which the customer controls the interaction. Findings include that 60% of businesses spend more than 25% of their marketing budget on video.
- As they produce more videos, companies are taking more of the responsibility in-house, with 64% of marketers saying they create video content internally compared with 38% who use an agency.
The Magisto report, based on a survey of more than 500 U.S. marketing decision makers from July to August, found that companies are embracing video marketing because their efforts can be easily scaled up and the content is effective at creating an emotional engagement while providing the easy delivery of digital advertising. The findings are reflected in the variety of video content being developed by brands these days, from short films to how-tos and native content.
Businesses are recognizing the need to produce video content continuously, with 56% creating videos at least once a week, 26% daily, 14% monthly, 12% quarterly and 18% once a year.
The marketing game changer for video content has been mobile devices. People are very willing to watch video on smartphone screens and the cost for brands to create and distribute digital video content is very different from putting together a budget for a traditional TV spot. Other developments like augmented reality, virtual reality, 360-degree video and live video offer marketers a variety of means for conveying a message.
An interesting finding from Magisto is that marketers who are Gen Xers are driving video marketing as they are 40% more likely to spend on video than millennials and 60% more likely to produce business video daily.