ROI

The Dominance of Video Marketing for Business

As video continues its quick rise it has become the most engaged with and preferred type of content for consumers. Marketers have taken notice and are quickly pivoting their content efforts accordingly. A new study by Magisto reports that video marketing has already eclipsed all other content types and is now a $135 billion industry. To put that into perspective, the report shares that advertisers in 2017 “expect to spend $83 billion on digital ads and $71 billion on TV commercials.” 84 percent of marketers created more video in 2017, with 60 percent of businesses having video marketing that accounts for more than 25 percent of their marketing budget.  

Why is video so dominant as content? According to the study, “Done correctly, video has the scale of television, the precision of digital marketing and the power of authentic story. Businesses are using video to distribute their messages in ways that contribute real value to the attention economy…”  

Consumers prefer video content. Just look at the most popular websites – namely social media platforms such as Facebook and Instagram. Video content dominates consumers’ newsfeeds because that’s the type of content that Facebook sees is most engaged with. But don’t think this is all about social media. Magisto shares that by noon Pacific time every day, 120 billion emails are sent and 35 million photos uploaded to Instagram.  

Consumers are voting by their actions as far as the type of content they prefer — time spent on web pages with video averaged 7 minutes and 21 seconds. While time spent on pages without video was only 2 minutes and 48 seconds, according to a study by Wistia, which analyzed consumer behavior on the top 100 websites.  

Why is time on site important? The longer a consumer spends on your site, the more likely they are to convert. In fact, having video on a web page can increase conversion by up to 80 percent, making online shoppers being almost twice as likely to buy from that business! 

 Video content should not be something you are “considering.” That time has passed. It’s now only a matter of what kinds of video should be produced, and how your dealership should use it with your customers. Engaging consumers is the number one way to increase interest and steer them towards your dealership and away from the competition. Of course, if your competition is using video and you aren’t, chances are they are already taking away sales from you.   

Video marketing is not hard, nor is it expensive, it just needs to get done. It’s no longer whether you should be doing video, it is how much is it costing you NOT to? 

Five Critical Micro-Moments for a Successful Video Marketing Strategy

In a recent study titled “Winning the Moments Before Your Dealership,” Google outlined five critical moments buyers encounter on their online journey to your dealership. For any marketing strategy, ensuring that you are in front of potential customers is imperative to maximizing its effectiveness. The same goes for video marketing. In video marketing you have to ensure that you don’t fall into the trap of simply creating videos that are ineffective, which nobody will ever watch, or which are irrelevant to what you do. Knowing the type of video, along with the correct message that will attract customers and continue to guide them along the path which ends at your dealership, is what matters and will bring sales.

Google’s five critical micro-moments are decision-based and centered on where that buyer is in the car buying funnel.

They are:

  1. Which car is best?
  2. Is it right for me?
  3. Can I afford it?
  4. Where should I buy it?
  5. Am I getting a deal?

Understanding these micro-moments and applying them to broadcast video content so it engages customers, is something every dealership should do — not just for your video marketing, but for every digital marketing channel you participate in.

If you can tailor video to those moments you’re much more likely to guide customers down the “yellow brick road” that ends at your dealership, avoiding any encounters with the Wicked Witch (your competition), which could end badly for you (meaning your customer ends up at your competition).

For those of you that haven’t yet taken the plunge into video marketing, knowing HOW and WHAT TYPE of video content to produce, along with WHERE to put it, and WHY it’s important, will get you dealership off to a great start.

Of course, you won’t know what’s working and what’s not without the data to show you. We’re in an era of data-driven marketing and now have the information to make decisions based on real-time actions — to then take that data and entice and convince customers that, in each micro-moment, your dealership is the one they should choose.

And believe me, folks… it works.

Consumers today are far more likely to watch a video than they are to read or look at the 40 or more pictures a dealership has on its VDPs, whether that’s a vehicle walk-around, dealership introduction, or a personal branding video message. By simply HAVING video, you are ahead of the game. Through learning and embracing these micro-moments, along with producing relevant videos that are part of a larger video strategy designed to capitalize on these decision-making moments, you’ll be leaps and bounds in front of your competition.

Join me at the 22nd Digital Dealer Conference & Exposition on Wednesday, April 12th from 2:30-3:20 pm for my session, “Mastering Google’s Five Critical Micro-Moments with Video – Creating a “Video Marketing Strategy to Maximize the Effectiveness of ALL of Your Video Content and Deliver Measurable ROI through an Increase in Leads, Appointments, Shows and Sales.” I will show you how easy and inexpensive it is to enter the realm of video marketing. You will learn how to create a strategy and how to measure the results through accurate data while being relevant and engaging by incorporating Google’s five critical micro-moments. I look forward to seeing you in Tampa, FL.

The Most Important Metric In Gauging Video ROI

by Tim James

The question most pondered by businesses when advertising is perhaps the most important:

“What is my ROI?”

It doesn’t matter whether we’re discussing television ads, radio, 3rd party leads,

that gorilla on top of your building, or the contest you’re running on social media; all roads lead back to the ability to answer that one simple question. Dealers and their vendors use call tracking numbers, unique landing pages, and a plethora of reports to justify the monthly expense of any given marketing campaign. Some dealers swear that a product or service works, while others might complain that it does not.

In the case of video marketing, if you don’t believe or are unsure about its effectiveness, there’s one simple metric that you should take a look at:

Inventory turn.

You’re already keeping track of this. You know the average length of time a new or used car sits on your lot. You might even hold your used car manager accountable for this. This isn’t something that sits in the pile with all of the other reports. It’s something that is vital to the dealership’s profitability and, more importantly, the bottom line. Flooring costs can get quite expensive. The longer a car is kept in stock, the less profit it’ll make. In terms of time alone, that vehicle is depreciating daily. That’s where video marketing comes in. It can make your vehicle stand out and engage online shoppers better than any other form of media.

If you have a comprehensive video marketing strategy in place and are executing on that strategy (taking the videos, making them engaging, getting them on all of the key touchpoints), take a look at your inventory turn to gauge its effectiveness. What was it before video marketing? What is it now?

The bottom line is that any dealership marketing strategy has one simple goal: selling more cars. Video marketing done right will speed up your average inventory turn. And the ONLY way it can accomplish that is by bringing in more customers who are buying your vehicles more quickly. And that’s the only answer that matters.