Of the SMBs in BIA/Kelsey’s Local Commerce Monitor survey of small and medium businesses that use video* for advertising and promotion, nearly half (45.6%) say they made it themselves, a quarter (24.4%) say they have a custom produced video, and less than 20% have a slide show or stock video.
An interesting point on return on investment (ROI) of video users — they do not rate their ROI particularly high for the various video formats — which indicates that they are not seeing the value in video. Television, another video-driven media, has a higher ROI than the other video formats, with 48.6% video users rating it excellent (10-19x spend) or extraordinary (20x plus). For digital only video like YouTube and website video, a greater percentage of video users rated them as fair (2-4x spend) or poor to equal spend than rated them excellent or extraordinary.
Takeaway — while SMBs that use video for advertising and promotion see value in television advertising, they are not seeing the same value in other video formats. This creates an opportunity for publishers to educate and show value.
*Video includes YouTube, website video, video on another site, or video display.
BIA/Kelsey’s LCM, Wave 19 reports can be purchased a la carte in the new BIA/Kelsey eStore. Our LCM reports look at where particular SMBs (broken out by size, vertical, etc.) spend the most, as well as the top channels for marketing and promotion.