Ranging from $5,000, which equals to a designer handbag, to $35,000, which equals to a car. And yes, I am referring to only the first minute of a video.
However, the real questions remain:
“What are the advantages of explainer videos?”
“What’s so good about it that people are willing to spend a large sum of money, rather than spending it on designer items or cars?”
Let me tell you why…
#1. Time Saver
Would you rather spend 1 minute watching a video tutorial on learning how to use a product or spend 15 minutes reading a black and white instruction manual?
A lot of researchers conducted multiple studies about humans’ decision to abandon something if they were asked to wait.
The result is as expected, humans, especially Gen Y, do not like to wait for anything.
Explainer videos can help explain products and/or services just in mere seconds and it’s a huge time saver.
If you’ve been following our previous posts, you should’ve read how humans’ attention span only lasted for 8 seconds before they lose interest or become distracted.
Explainer videos are concise, they also showcase problems and solutions at the same time.
#2. Eye-Pleasingly Attractive
Motion, lively audio, colorful graphics are the least you can expect in an explainer video. It displays creativity and it enables companies to better engage with their consumers.
Here are some facts from a survey of US consumers:
- 96% of consumers consider videos to be helpful when they purchase a product
- Nearly 3 out of 4 consumers will consider purchasing a product if they can see a video explaining the product beforehand
- 77% of consumers consider companies that use explainer videos tend to be more engaged with their customers
#3. Better Google Rankings
Almost 4.54 billion people are active internet users. So who doesn’t know Google?
Not only it is the biggest search engine, but being featured on Google rankings is a good way to expose your product to the consumers. And Google LOVES videos.
Research shows videos are 53 times more likely to rank compared to plain texts.
Imagine your products/services appear on Google’s first page!
It is more likely for your products/services to be known and being exposed to the consumers if you present it in the form of a video. Videos bring life to plain, old, boring texts on paper, and it also saves the trees!
#4. Perfect Pitch Every Single Time
Videos can better explain your company story that’s normally displayed on company websites, emails, and much more.
From there your consumers get a better understanding of your company and they can feel like they can relate to you at a personal level, increasing the chance of them purchasing your products.
All you need to do is find the perfect partner that can help you express your ideas and you’re in for a treat!
Creating your explainer videos allow you to choose your own color palette, decide on your own characters that can make your audiences feel more relatable to you, and also personalize your scripts.
Afterward, this explainer video that you have carefully planned and thought of for the past few months will give you the perfect pitch to share with your customers all over the world every single time. The best part is you do not have to be there to share this pitch every single time someone enquires about it.
You can now easily share your story with the world and make connections that will be beneficial for your business.
#5. Return of Investment (ROI)
For all the money you’ve spent in making the video, it is only fair if you earn them back, especially with interest!
First of all, explainer videos are cheaper than ads! You have to continuously renew ads and pay its monthly fee depending on how many billboards, tv stations, etc. that you rented.
Of course, we are all hoping for a small spend that will turn into a huge return.
Second, research shows that 80% of viewers recall videos that they’ve seen within the last 30 days and 12% decided to make a purchase. A way to boost memory is by involving their emotions and videos is proven to be an effective way to do it.
Videos help people visualize situations, therefore people can relate to it and have an emotional connection.
From the video that you have produced and post, you can also track what you need to improve on the video. This includes which part do people watch, rewatch, and skip.
How Do You Know That Explainer Videos Actually Works?
Twitter is a very popular social media platform. Its users range from celebrities to businesses and also general individuals using it for personal use.
Twitter is now a big company with millions of users, but who were they 15 years back?
In 2007, a company named Common Craft created a video explaining how to use a new social media platform, Twitter.
Using simple graphics and easy to understand language, Twitter’s explainer video managed to get 10 million views and the video is proven success.
And what’s the proof?
Up until January 2020, Twitter has 1.3 billion accounts. Within that 1.3 billion accounts, 330 million are active monthly users and 145 million are daily users.
There are an average of 500 million tweets sent each day (that’s 6000 tweets per second) and 65.8% of US companies with 100+ employees use Twitter for marketing.
Moving on to its financials, Twitter reached the peak of its revenue in the 4th quarter of 2015 earning $717 million compared to the $590 million they earned in the 3rd quarter.
Then Twitter made a profit in the 4th quarter of 2017. Twitter originally priced its initial public offerings (IPO) at $26 per share in 2013, and as of January 2020, they’ve reached $32.
If you’re not convinced enough, here is another example. In 2009, there’s another explainer video for Dropbox on how it works.
The video generates 10 million users, that’s $50 million in additional revenue.
Twitter and Dropbox used to be a nobody.
However, they decided to make a change by confiding their faith in the power of explainer videos and digital marketing. Look at them now!
If I missed anything I’d like to hear from you.
Share your thoughts in the comment section below!