The concept of deploying video online is no longer only a business model leveraged by big business. Online video technology company Viewbix, along with economic growth in the sector, are helping many small operations to change their business model to include videos that actual improve conversion rates.
“The problem is very simple,” says Jonathan Stefansky, CEO of Viewbix, an Israel-based company that adds apps and calls to action around video to help drive engagement. “When most small businesses think of video, they focus on content creation. They spend time and money creating content for their YouTube channel and website and Facebook and after few weeks the excitement is gone and the business guys are left asking. ‘what is my ROI on this?’”
In fact, shrinking costs and rising benefits of video have spurred many small businesses into action, with 43 percent of small business owners saying they increased their budget for online video last year, an impressive jump from 17 percent in 2010, according to the Ad-Ology study, “2011 Small Business Marketing Forecast.”
And while the technologies for creating and deploying video across a wide range of platforms –YouTube, Facebook, Vimeo, blogs, company websites, and social media in general – have gotten much easier to use, monetizing those efforts for the small businesses owner has remained a difficult obstacle and conversion rates remain low for those who try to navigate that hurdle.
According to eMarketer’s 2012 Digital Media Usage Report, there will be 169 million video viewers this year. That’s a lot of opportunity, but many small business owners need to learn how to turn a viewer into a buyer.
What Stefansky, and others such as Brightcove, are recommending to the small business owner who may lack technical savvy or resources, is implementing some basic concepts that drive Web design: You need calls to action that encourage viewers to buy a product or sign up for newsletter or request a quote or request more information in general – a convenient way to turn that viewer into a customer and increase business opportunities. Without these prompts most viewers are likely to leave.
However, what Viewbix offers is a free basic app that businesses can install in under five minutes that provides automated calls to action that will appear in their videos. Among the 10,000 or so businesses that currently use Viewbix, says Stefansky, 20% of their viewers will click on the call to action button or engage with at least one of the apps inside the player itself. The average engagement rates with no type of calls to action hover somewhere near 1.2%. That can potentially mean a huge spike in business.
And, in turn, Viewbix tracks every action that occurs in the player and reports those results so that clients can optimize their players with the best performing apps.
The idea of video isn’t just to create something cool to show your friends, it’s to help grow your business. And new technology companies like Viewbix are stepping in to feel this void.
“So many business are spending so much time and money building content but are wasting it by not using engagement technologies like ours,” said Stefansky.