On a sunny day in July 2018, Dollar Shave Club, a California-based company that delivers razors and personal grooming products right to your door, uploaded a quirky, fun-filled video on YouTube titled "Our Blades Are F***ing Great". The video quickly went viral, and it helped catapult the company into the limelight, eventually leading to a $1 billion acquisition by Unilever [1]. This was a significant moment for marketers in the consumer packaged goods (CPG) industry and served as an example of how effective video marketing could become.
But how do Marketers in the CPG industry ensure they’re maximizing their ROI from video marketing efforts? Here are some strategies backed by research.
1. Understanding the Audience:
First, you must understand who you are targeting. According to a study by Google, 50% of shoppers said online video has helped them decide which specific brand or product to buy [2]. For that reason, tailor your video content to speak directly to your specific consumer demographics and their unique needs, interests, and concerns.
2. Emotional Engagement:
Videos that elicit strong emotions – whether positive or negative – tend to be the most successful. A study by Unruly found that the most shared ads of all time were those that sparked intense emotional responses [3]. Building emotional engagement helps create a strong connection between the viewer and the brand, which can lead to higher levels of brand loyalty and customer retention.
3. Focusing on Quality Over Quantity:
Investing in high-quality video content is more likely to generate a higher ROI. A study by BrightCove found that 53% of consumers engage with a brand after viewing a video on social media [4]. It suggests that producing fewer but higher-quality videos that genuinely resonate with consumers can drive more engagement than flooding the market with low-quality content.
4. Leveraging User-Generated Content:
User-generated content (UGC) can be a powerful tool for video marketing. According to a report from Stackla, consumers are 2.4 times more likely to view UGC as authentic compared to content created by brands [5]. Incorporating UGC into your video marketing strategy can not only increase authenticity but also stretch your marketing budget further.
5. Incorporating SEO Strategies:
Just like written content, videos can also be optimized for search engines. According to Cisco, video content will represent 82% of all internet traffic by 2022 [6]. Using the right keywords in your video title and description, as well as leveraging video sitemaps and structured data, can increase your video's visibility on search engines and drive more traffic to your site.
6. Utilizing Multiple Platforms:
Each social media platform has its unique set of users. While Facebook might be effective for reaching older consumers, platforms like Instagram or TikTok might be better for targeting younger demographics. A report by Statista found that 93% of the most successful video marketers use LinkedIn as part of their video strategy [7]. Using a multi-platform strategy can help you reach a broader audience and get more bang for your buck.
The success of Dollar Shave Club’s video marketing campaign was no accident. It was a result of a well-thought-out strategy that leveraged the power of video content to reach and engage with its target audience. By understanding your audience, creating emotionally engaging content, focusing on quality over quantity, leveraging user-generated content, incorporating SEO strategies, and utilizing multiple platforms, you too can maximize the ROI from your video marketing budget.
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[1]. "Unilever buys Dollar Shave Club for reported $1B value". (2016). USA Today. https://www.usatoday.com/story/money/2016/07/20/report-unilever-buys-dollar-shave-club-1b/87302052/
[2]. Google/Ipsos, U.S., "How Video Impacts Consumer Decision Making", Aug. 2020, https://www.thinkwithgoogle.com/intl/en-gb/marketing-strategies/video/how-video-impacts-consumer-decision-making/
[3] Unruly, "The Science of Sharing", 2014, https://unruly.co/insight/article/2014/10/16/science-sharing-2014/
[4] Brightcove, "2018 Video Marketing Survey: Consumer Trends", https://www.brightcove.com/en/blog/2018-video-marketing-survey-consumer-trends-infographic
[5] Stackla, "The Consumer Content Report: Influence in the Digital Age", 2017, https://stackla.com/resources/reports/the-consumer-content-report-influence-in-the-digital-age/
[6] Cisco, "Cisco Annual Internet Report (2018–2023) White Paper", 2020, https://www.cisco.com/c/en/us/solutions/collateral/executive-perspectives/annual-internet-report/white-paper-c11-741490.html
[7] Statista, "Social Media Platforms Used by Marketers Worldwide 2020", https://www.statista.com/statistics/259379/social-media-platforms-used-by-business-content-marketers-worldwide/