12 Reasons Why Video Production is Effective for Growing Business

Because it’s a magnet! 

Over 3 billion people worldwide are into videos! [Source: Statista]

It’s a huge number. This already gives you an answer to why video production is effective. 

Videos work as a solid bridge between brands and viewers (or future customers). They have several elements like clear message, simplification of complex concepts, powerful storytelling, vibrant visuals, and interesting sound design. All these help connect with people and drive results like– 

• More Views
• More reaction
• More customers
• More money 
• More loyalty 

This is just a small gist. Videos provide multiple benefits that show why they matter! 

• Need a reliable partner? Find Top Video Production Companies in Los Angeles here. 

Audience Engagement

Increases Customer Retention

Videos bear several factors that boost customer retention. 

Quality visuals, music, voiceovers, and interactive elements– these interest the audience. Besides, stories, relatability, and emotional connection add a cherry on top to enhance viewers’ engagement. 

Several content types work here. Be it how-to videos, product launches, or behind-the-scenes glimpses, brands can build long-term trust with their audience through them. 

For instance– 

Sephora had launched a Virtual Artist App video that became very popular. The augmented reality element lets customers see how lipsticks or eyeshadows look on their skin tone before purchasing. 

Many viewers turned into customers and existing customers turned into loyal ones. 

Such personalized and interactive experiences–

• Keep people engaged
• Build trust, and 
• Ensure they return for future purchases

However, another thing that works is the length. Short length tends to witness more customer retention than longer content. Even there’s a stat for this— 

“Brand see an increase in video retention rate up to 62% for anything under 60 minutes.” [Source: Dash app]

This shows how important marketing and video production is. 

Also check: Clipfly AI Video Generator

Boosts Social Media Engagement

Social media thrives when there’s a video. 

You may notice that videos trigger more views and engagement than plain text on the app. That’s why the platforms show videos and put them on top. 

It also has a lot to do with algorithms. The more views, the more the stuff is optimized. In this case, videos get the attention, so they get the spot in search engine results. 

All you have to do is post, market, and boost the content in platforms that work. 

Consider options like– 

• YouTube
• Vimeo
• Instagram
• TikTok
• Facebook
• Snapchat

As per G2 Crowd, 

“Videos on social media platforms have a staggering reach. They generate 1200% more shares than text and images combined.”

For instance– 

AirBnB has several cute, unique YouTube Shorts and Instagram Reels that effectively hook people. The use of graphic elements and stop-motion animations makes their videos more interesting. 

Appeals to Visual Learners

Humans brain processes visuals much faster than text. 

This makes videos a highly efficient communication tool. That’s why you find countless visual learners. 

Speaking of which, visual learners make up a significant portion of the population. 

It’s about 65%! 

This means they’re naturally drawn to video content as it simplifies complex information. It works psychologically. Visuals stimulate the brain and make information more memorable.

In the 1980s, a joint study found that–

Brains process visuals 60,000 times faster than text. And people are likely to remember the content after 72 hours compared to other elements. 

One perfect instance is the content of Tasty By Buzzfeed. 

Their videos show step-by-step recipes in a top-down style. The visuals are colorful and eye-catching with the incredible presentation of food. Moreover, the content simplifies complex recipes that last a minute or two.  

This makes them approachable to people who aren’t even into cooking.

Marketing Effectiveness

Enhances Brand Awareness 

Videos can ensure a 90% recall value. 

For this, many brands are resorting to marketing and video production. Such content lets the businesses share their story, mission, or unique value. The hook here is the elements like visuals, sound design, and emotional storytelling.  

As a result, brands have this beautiful content that people are bound to remember after they watch it. 

Several businesses have enjoyed the perks of videos. 

As per Dash App, 

“90% of video marketers say the content has helped them increase brand awareness.” 

Make sure the logo, color palette, and tagline are interesting and represent your brand values. That’ll draw people in and make them remember you. 

One great case study is the video of Dollar Shave Club. 

The brand is popular now. But guess what made them popular? The quirky video with the tagline “Our Blades Are F***ing Great.” It was released in 2012 but people still talk about this ad. 

Improves SEO Rankings

Google and any search engines love videos. 

Even they’ve realized how people are into such content. So, they happen to push videos on top. 

There’s a stat on this too— 

“If you place a video on the landing page, you’re about 53% likely to rank on the first page of Google.” 

Take rhode® Skin by Hailey Bieber for instance. 

But how does visual content impact SEO? Simple– 

Videos keep visitors on your site longer. If someone watches a 3-minute video, Google considers that extra time valuable.

Besides, creative thumbnails and video titles also grab attention in search results. 

However, use proper keywords, titles, and tags in video descriptions to make it work. This will ensure and enhance visibility. 

Supports Content Personalization

Want to connect deeply with your people? Then personalized videos are the answer!

Such content creates one-on-one connections. They highlight things that target and reach specific customer segments. It can be the—

• Product Features
• Emotions
• Local demographics 

With these, brands design content keeping individual preferences in mind. 

Personalization always–

• Intrigues viewers
• Builds stronger connections
• Triggers people to act faster
• Makes a buyer’s journey smoother  

All these increase the chances of conversion and help your business stay competitive. Eventually, you build stronger trust and customer loyalty.

Moreover, many businesses use customer data to make the videos feel more personal without affecting their privacy.

If you want to create personalized videos for your audience, consider tools like Vidyard and BombBomb. Note that such content shines more in email, SMS, and push notifications.  

Expands Global Reach

Videos surely reach global audiences.

People across the globe scroll through platforms and an interesting video can catch their eye. 

It works mainly because such content goes beyond the language and cultural barriers. With subtitles or voiceovers in multiple languages, businesses make their content accessible to non-native speakers. 

Result: It helps them connect with a wider audience. 

For instance–

Nike and Coka Cola create content in different languages like– Mandarin, Spanish, and Hindi. They even employ people from various regions to make it relatable. 

This indicates that language is never a barrier to understanding the product.

Because of its efficiency, platforms like YouTube and TikTok let brands share videos worldwide. This works to make them reach millions of users. 

Consequently, they enjoy more brand visibility and engagement. 

It can be a great way for videos to go viral. 

ROI and Conversions

Increases Sales Conversions

The messaging and presentation play the main roles here. 

Videos show products and convey a clear message that can lead to action. They simplify complex concepts and make them interesting for the audience. 

Through real people and storytelling elements, videos create confidence in viewers. Such a boost helps turn viewers into customers. 

The content also helps people consider how your products fit into their lives. It presents the product benefits and features with popping visuals that work as persuasion. The strong CTAs, on top, trigger them to make decisions. 

That’s how videos help increase sales conversion.

As per the stats– 

Adding videos to a landing page can shoot conversion up to 80%. [Source: SalesLion]

This shows how powerful the video is. It creates an emotional connection with the audience that makes them loyal customers. 

Cost-Effective In The Long Run

Yes. Producing a video can be spendy. But it’s eventually cost-efficient. 

Usually, it takes anywhere from $5,000 to over $200,000 if you wish to make content. This is the range of a video production company. 

Now think this way. You can re-release and repurpose the videos across different platforms and formats. 

Take any long content for instance. You can cut it into shorter snippets as teasers. This maximizes the value and saves you from extra production costs. 

Try to compare these two situations:

A professional video on one hand and a print flyer on the other. The shelf life of visual content will be longer than texts and images. 

Repurpose videos work great in different cases like— social media posts, ads, and email campaigns. They tend to pull viewers effectively. 

For instance—

Dropbox. They take customer testimonials from a longer video and turn them into small impactful clips. 

Builds Credibility and Trust

The authenticity matters in this case. 

Customers often need assurance, especially in industries like technology and healthcare. Videos give that ‘assurance’ with their transparency. They build trust and credibility with the audience. 

Content like testimonials and explainers work most effectively.  

Testimonials from real customers work as strong proof of a business’s service. The people in them share their experiences with the brand. That’s what motivates viewers to trust them. 

One statistic mentions that– 

About 92% of buyers check reviews and testimonials before buying. [Souce: Vendasta]

It’s because of that credibility. 

Explainer videos provide a similar effect. Such content breaks down complex topics into simple terms. It helps viewers understand how a product works. This eventually helps brands earn the trust of potential buyers. And then, it leads to conversion and retention. 

Facilitates Measurable ROI

Videos can make you make lots of money. 

The claim is true. One perk of using such content is that you can track and measure Return On Investment. 

You have tools like Google Analytics. They track–

• Views
• Click through rates
• Conversion rates
• Play rates
• Watch time
• Engagement
• Impressions

All these let you check how your video is performing. You can measure the direct impact of the videos on sales and engagement. That way, you can work on the weak points and perfect your content. 

Several software and tools offer deeper insights like Vidyard. They let you analyze all the key metrics. You get to know which sections are getting more engagement and which aren’t. 

Such evaluation helps you optimize the video properly for better performance. Plus, it ensures your future content is more efficient at driving results. 

Eventually, you earn more than what you invested. 

Drives User Actions

CTAs take most of the credit for this. 

Videos typically use powerful calls to action that encourage viewers to do something. It can be– 

• Buying the product
• Taking a service
• Downloading something 
• Making a content
• Adding to cart 

Such CTAs remain within the video. You just need to know where to place it. 

That’s it. 

The right placement can make people take immediate action. 

Besides CTAs, proper presentation of products and narration also work. Combining these works to turn viewers into customers and customers into loyal customers. 

For instance-

AirBnB videos use interesting CTAs and present their concept through unique storytelling. Their slogan “Belong Anywhere” is powerful CTA itself. 

Frequently Asked Questions

Why is video production important for businesses?

Video production helps businesses earn customers. 

It helps increase engagement, awareness, conversion, and revenue through different factors. 

How does video production increase customer engagement?

Multiple elements work to engage people. These are– visuals, sound design, stories, presentation, product highlights, and emotional hook. 

All these in video production help increase customer engagement. 

Can small businesses afford video production?

Yes. Many companies offer budget-friendly packaging without sacrificing quality. They design videos catering to small businesses. 

For instance, the LocalEyes service rate starts at $5000 which is quite reasonable. 

What are the top tools for creating business videos?

Final Cut Pro and Adobe Express are the top two options. You can use them for creating business videos. 

Some other options are– Biteable, Filmora, and Animoto. 

How do I measure the ROI of video marketing?

You need key tracks. They help you measure the ROI of video marketing. Use tools like Google Analytics and Vidyard to assess the key metrics and track ROI.