See the original article here: What Is the True ROI of Online Video?

By Dane Frederiksen, Guest Author

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The value of doing some kind of video for marketing finally seems to be widely, if not universally, accepted among marketers. Video is arguably the most engaging marketing format and has the added benefit of being easily shared in social media via links. Videos go viral, not articles.

The most frequent question I get from clients new to video is: ”How do I measure the ROI of web video?” They quite rightly want to know that money spent is a solid investment in business growth. This has historically been the point where the video production industry hasn’t had a convincing response (other than the gut knowledge that video is fundamentally more engaging, exciting and should therefore help you stand out in a crowded marketplace).

Depending on your business model and objectives, different data points will be more relevant to your business than others. However, here is an accumulation of information that is important to your overall video campaigns:

Comscore released a study in April 2011 showing that 174 million U.S. Internet users watched online video content in March for an average of 14.8 hours per viewer. The total U.S. Internet audience engaged in more than 5.7 billion viewing sessions during the course of the month. Also notable is that 83.5% of the U.S. Internet audience viewed online video.

Bytemobile reports that within 2011, 60% of all mobile data traffic will be video!

Next up, a study of online video use by senior executives conducted by Forbes Insight and Google reveals that video drives business decisions:

  • 75% of senior execs watch work-related videos at least weekly
  • More than half share videos with colleagues at least weekly
  • 65% visited a vendor’s website based on a video
  • 42% made a business purchase decision based on a video
  • 59% prefer video when the same material is available in either print or video

Video can also significantly help boost the efficacy of your email campaigns. Incorporating video into emails improves click-through rates by 2-3 times, according to a recent Forrester report.

Brightroll research indicates that an increasing amount of money and attention is being shifted from traditional media to online video:

  • 65% of respondents plan to reallocate campaign dollars from TV to online video
  • 30% of respondents believe online video advertising to be more effective than TV
  • In a promising sign for the industry, media buyers predict online video to see the largest overall increase in spend in 2011

Like any industry, web video will take time to mature and its value will soon be as obvious as TV, print, banner ads and search were in their time. But for now, it’s the savvy marketers that have the chance to read the writing on the wall and leverage the fastest growing media format in history.