13 Benefits of Video Marketing for Small Businesses in 2023

The benefits of video marketing for small businesses are more than a dozen. Be it increasing traffic or increasing sales. Video marketing leaves no stone unturned.

The marketing budget for small businesses is seldom to the hilt. On the contrary, they have to cut a lot of corners. That is precisely why they are better off centring their focus on videos. 

The importance of video marketing cannot be overstated. Online videos reach an incredible 91.4% of internet users. Without wasting a lot of time, look at the advantages of video marketing for small businesses.

Benefits of Video Marketing for Small Businesses

1. Video Marketing Increases Your Ranking on Google’s SERP

Getting your videos optimized for video SEO does play a massive role in getting ranked on Google. In addition, videos also increase your chances of a high ranking. Based on empirical evidence, Google does seem to favour videos over text and image content.

Apart from that, when your video makes it to the SERP. It is shown with a thumbnail. Therefore, it becomes a snippet. Moreover, video thumbnails constitute 26% of search results on Google. Video marketing is a hack when it comes to increasing visibility. 

2. Communicate Your Product’s Value Proposition Clearly

A lot of sweat and blood gets poured into making a product. However, that does not mean that people will automatically get your product. 95% of people watch product explainer videos before purchasing. You must communicate your product’s features and benefits. You must explain how your product serves your customers. 

As a solution, a product explainer video is your best ally to market and communicate the value proposition of your product. If people understand how your product benefits them, your customer acquisition rate will increase too. 

3. Videos Help Small Businesses with Customer Retention

Customer retention is as important as customer acquisition or even more. These are the stats on customer retention:

1. The cost of acquiring a new customer is five times higher than retaining one. 

2. Increasing the customer retention rate by 5% can increase profits by 60%

3. There is a 65% chance that you will sell to an existing customer while you only have a 15% chance when trying to sell something to a new customer. 

Videos increase your chances of customer retention. You can use brand awareness videos, explainer videos, tutorial videos, and personalized videos to retain customers. 

4. Videos Are Popular. Period

92% of video consumers share it with others. Videos spread like wildfire. Videos are consumed in copious amounts across the internet. More and more people have started preferring videos over text. Even on social media sites, videos are the most popular form of content

Not capitalizing on the perpetually growing popularity of videos would be a blunder. Videos' popularity should be used to its fullest.

5. Boosts Click-Through Rates and Open Rates

When done right, subject lines do wonders for your emails. If you are adept at copywriting and hit the bull's eye. However, there is a hack. The mere mention of the word ‘video’ reaps the following dividends:

65% increase in CTR, 19% increase in open rate and brings down the number of unsubscribers by 65%. The numbers are right. That’s how irresistible videos are. They are perfect for sales prospecting.

6. Video Marketing Increases Conversion Rates

Video marketing is a conversion generator. No other form of marketing can hold a candle to video marketing in this regard. According to a reputed site, these are the advantages and video marketing stats as far as conversions are concerned:

(i) Videos increase landing page conversions by 80%

(ii) Videos on homepages increase conversions by 20%

(iii) Product explainer videos increase conversion by 20%

7. Video Marketing Is Affordable

Contrary to popular belief, video marketing is affordable. There are myths about videos being too expensive to produce. However, they could not be further from the truth. There was some truth to them before the advent of high-quality smartphone cameras. But the scene has flipped today. All you need to own is a camera, a good-quality mic, and top-notch video-making and editing software

8. Video Marketing Provides Value for Money

Take all the video marketing stats posted so far in this article into account. In addition, we also know that video marketing is inexpensive. Combining both aspects of video marketing, we can safely conclude that video marketing provides you with the bang for the buck. 

9. Build Brand Awareness with Video Marketing

Widespread brand awareness helps you lay a strong foundation. Brand awareness creates a recall value, albeit if done right. What better than video marketing to make your brand stick in the viewers’ minds? Viewers retain 95% of a video compared to 10% of a text they read. 

You will be able to establish a distinct brand identity with video marketing. Brand identity helps you in acquiring and retaining customers. 

10. Video Marketing Helps in Establishing Presence on Social Media

Everyone seeks virality on social media. And why not? People seem to be living on social media. Videos are helpful when it comes to connecting with your audience on social media. The following video statistics on social media speak volumes about its widespread reach:

(i) Consumption of videos on Instagram is touted to outperform YouTube.

(ii) A video on social media generates 1200% more shares compared to its counterparts - text and images.

(iii) Video tweets are retweeted six times more than text and image tweets. 

The abovementioned stats prove that video marketing is the key to winning over your audiences on social media. 

11. Better Online Presence

Video marketing increases conversion rates as well as our social media presence. Consequently, it is bound to guarantee a better online presence as well. A better online presence ensures that your potential for growth increases. It also adds credibility alongside building connections with your audience. 

12. Video Marketing Increases Sales of Small Businesses

What is the lifeline of its business? Its income. Its ultimate goal is to generate revenue. Any business will be rendered obsolete without profits. Therefore, a product should sell for it to grow. 

A product does not sell itself. It needs to be marketed and backed by a powerful brand. The rest of the article is a testament to the fact that video marketing helps in marketing and branding. As a consequence, videos will also increase the sales of a business. 

13. Video Marketing Helps in Data Generation

Data helps you make better decisions. It helps optimize your business and maximize its potential. Videos can help in generating data with their stats. Video statistics go beyond its views, likes, and shares. Those are just superficial stats that will help you only to an extent.

Get your hands on in-depth video analytics for stats such as play rate, view time, video heatmaps, and more. 

You have now gained knowledge about the benefits of video marketing for small businesses. However, acquiring knowledge alone will not suffice. Applying it is the real deal. 

How to Bring Video Marketing Strategy to Life?

With video marketing, you can break the threshold of a small business and become a big player. You will need to join hands with a video hosting platform. The platform will allow you to store and organize videos, analyze your videos, automate video SEO, profile your customers, and much more.