Online video creation and consumption is not slowing down any time soon. The U.S. digital video marketing industry is expected to reach $135 billion this year, according to a new study by mobile video platform Magisto. This figure, which covers the cost of video capturing, creation, hosting, distribution, analytics and staffing, is large and can make video marketing just as big as TV and digital marketing combined. Contrary to video marketing, advertisers are expected to spend $83 billion on digital ads and $71 billion on TV commercials (a total of $154 billion) in the U.S. this year.
The growth of video marketing has been nothing short of “meteoric,” the report says. This year, U.S. businesses will spend an average of $20,000 in this space. Majority of this ad spend will come from small companies, which refers to those with under 100 employees. The companies are expected to collectively spend $122 billion this year alone. Companies with between 100 and 499 employees will spend $9.1 billion; those with between 500 and 1,000 employees will spend $1.6 billion; and those with over 1,000 employees will spend $2.2 billion.
“Companies are spending billions to try and find effective and genuine ways to reach customers amid a new set of rules defining brand engagement,” says Oren Boiman, CEO of Magisto. “Video is proving a primary choice because it fits across earned, owned, and paid media, and almost any place customers are consuming content. It is both authentic and familiar to them. As consumers seek to define or re-define their own relationship with brands, video lets marketers meet them on their own turf.”
These smaller companies are not simply creating one or two videos throughout the year instead, according to the report, 56 percent of U.S. businesses create videos at least weekly, while 26 percent do so daily.
For the study, Magisto surveyed over 500 marketing executives at various US companies of different sizes.