According to a new report, the findings to which MMW was privy on Thursday, video is becoming marketers’ tool of choice.
In fact, U.S. companies are investing $135 billion this year in online video to market products and services.
The research, from Magisto, hailed as being the world’s most popular smart video storytelling application, is part of a new report released today entitled “Video’s Payday: Part 1: The Modern Marketing Dilemma and the State of Business Video.”
We’re told that the report is the first release in a three-part series and examines the rapid rise of online video, resulting, according to the report, from new rules of marketing engagement that have tilted markedly in favor of authenticity.
The research examined the digital video spend among U.S. businesses and found that over the next year, American businesses will spend an estimated $135 billion on digital video. The figure takes into account the entire video ecosystem, including production, tools, people and media, painting a contrasting picture compared to existing predictions for the market. As a point of reference, advertisers this year expect to spend $83 billion on digital ads and $71 billion on TV commercials. This new research points to the digital video spend nearly equaling the combined spend of digital and TV advertising in the U.S.
“The traditional, linear mode of communication, dominated by advertising and controlled by legacy marketing, simply doesn’t work today. It is more white noise at a time when signal is the scarcity,” said Oren Boiman, CEO of Magisto. “The enormous influence of social media and the bottom up culture of millennials have led to a new marketing condition where the consumer is in control, word-of-mouth is a medium unto itself, and authenticity is paramount to engaging customers.”
To review the complete report, click here.