Millennial consumers heavy usage of social and video is driving changes in how small businesses approach advertising according to a new study, “Unlocking the Most Powerful Shift in SMB Marketing,” from Magisto. Millennials create video and share on social more than any other media channel and according to Magisto’s study this is changing how small businesses market to this group of consumers — moving away from traditional word of mouth to social. At BIA/Kelsey we are constantly looking into the why behind the large shift of small business advertising spend to social media. Magisto’s report found that Millennials at small businesses lead with social media vs. traditional channels — 92% start their marketing with social media and more specifically with video.
In our Local Commerce Monitor™ survey of small businesses we found that small businesses are not only making videos they are sharing them across multiple platforms. Of small businesses who use videos to advertise, nearly half make their own videos. Additionally, the most popular channels for advertising for small businesses that have videos are all social — Facebook, Youtube, Twitter, Linkedin rank in the top 5 (video on their website is third most popular). YouTube has also tapped into this trend with their recent launch of Directer OnSite service that helps SMBs for “free” (must purchase $150 in advertising) create a custom produced video. Instagram also recently expanded their free video run time from fifteen to sixty seconds after video viewing increased.
When offering video advertising to small businesses creating the the video is the starting point. Smart companies should provide a service or platform to market small business videos through multiple channels including social and mobile.
Another key insight from Magisto’s study is the types of video content, the show not tell, that work best for small businesses (see below).