You don’t have to look very far to see that Video Marketing is the future of digital marketing. Not only is it cost effective, easy to create and use video online, but consumers favor video on almost every platform.

If you are a dealer, video is too important to overlook. While it is popular now with marketers and consumers, that popularity will be even larger over the next few years.

Here are three things fueling the growth of video marketing over the next five years and beyond. Along with some simple tips you can use to stay ahead of the trends in 2020.

1. 5G is coming…

The world is on the edge of a communication revolution. 5G networks will be rolling out in the US by the end of 2019. Since most mobile devices are already designed for viewing video and downloading large files, the real innovation for video in a 5G world will be Augmented Reality.

For example, Panera Bread recently launched an AR ad unit for mobile devices. Consumers can project and rotate menu items and share the content across popular social media channels. The idea is to add transparency and increase engagement. For your dealership to be competitive, it makes sense to incorporate AR advertising and image overlays into your 2020 marketing strategy. A consumer can’t really “see” a car by reading a monroney sticker. They can, however, kick its virtual tires online and cruise through and around it via video. Imagine car shoppers interacting with a vehicle walk-around video right in their own homes.

Some other major national brands and games have found success with AR applications. Snapchat filters are wildly popular among younger generations and are a great example of how simple overlaid images can enhance the user experience and help spread brand awareness.

2. 70% of the workforce will be millennial or younger over the next 5 years

Speaking of younger generations, 70% of the workforce will be millennial or younger over the next 5 years and their purchasing power will continue to rise. Millennials, Gen Y and Gen Z consume video for more than just entertainment. They use it to guide them in everything from fixing their own washing machines, to learning about brands and products. This then influences their purchasing decisions.

According to a consumer study by Animoto, 8 out of 10 millennials find video helpful when researching a product or service. In fact, they are 85% more likely than baby boomers to purchase if they can watch a video explaining it first.

How can your dealership take advantage of this? Include demo videos on product pages as consumers prefer product demo videos over still images. Placing video on your website increases conversion by 80%. Also, having video on a website makes it 53 times more likely to make it on Googles 1st page. In addition, email open rates increase by 7% when the word “video” is in the title. So, it make sense to include video as part of your lead follow up process.

3. By 2020, most content will be video

In 2016, Facebook predicted that almost all of its content would be video. Since then video consumption has increased by 100% per year. By 2020, 80% of all digital content will be video. 6 out of 10 consumers prefer video over television. Not only is video the consumer’s preference, it can also reinforce your brand because viewers retain 95 percent of a message that they watch through video.

Video continues to dominate every form of content delivery, and somehow manages to break its own records year after year. Video content is here to stay. Not only is it here to stay, but marketers that fail to use it – and fail to have a robust mobile and video strategy – will quickly find themselves left behind eating their competitors’ dust. And, more importantly, left behind by their potential customers.

Decide now to increase your video content production efforts so you are ahead of the competition in 2020. Include video on your website, use it for more effective customer follow up and make it a core part of your overall marketing strategy. It is what consumers want, and your profit margins will probably agree.

Consumers have grown tired of the countless vanilla marketing messages many companies keep sending (and yes, that includes OEMs and dealers.) However, the marketing tactic that is enjoying success is relevant marketing directly aimed at a specific individual. Relevance is the key to winning today’s consumers. But, it’s not only about relevance, it also involves delivering that message in an engaging manner. Well, how do you best do that?

A recent article in Forbes shared that while ad spend is up 22%, the majority of marketing channels and methodology often produce an open rate of less than 19% and a click-through rate under 3%.  Video, however, performs much better. The article shares a story about a business that decided to shift its budget away from traditional marketing messages and instead use personalized video messages. The videos are personalized and available to the consumer on any platform. The results are incredible, with a 98% open rate and a total transformation in terms of reduction in early churn.

Personalization is vital to capturing a consumer’s attention. And there is no more effective way than through the medium they prefer: video.

There are many pieces to each dealership’s marketing puzzle. If your dealership is looking to cut its marketing budget because of a downturn in sales, first consider which pieces of that puzzle produce sales that can be tracked versus those that are shiny objects.

The great thing about sending personalized videos to prospects and current customers is that consumers tend to engage, and it is also one of the easiest types of marketing content to produce, the most affordable and performs the best.

It doesn’t matter which platform your prospective car buyers choose to engage with your dealership; videos perform the same regardless of platform. Videos emotionally connect with people and make them feel more special than an automated template shooting out from a CRM. Consumers can smell those a mile away. A personalized video, however, addresses them by name and shares the exact information they are seeking on the exact vehicle. Which is going to get a warmer reception and build rapport faster?

People like to do business with businesses (and people) that they like. As long as the customer is hiding behind an email address, or ignoring your phone calls, you are simply more noise that is not specifically relevant to them.

There is a reason personal videos made relevant to each individual customer perform better than other forms of communication. The biggest one being that the consumer recognizes that, while they may receive similar auto-responder templates both at the beginning and during the follow-up process, YOUR dealership chose to take the time to address them on a personal level with a video that answered their questions and welcomed their business.

Stop shooting for 3% response rates and think bigger. Video not only engages more customers; it generates more sales and builds loyalty as an excellent side benefit.

There are a huge number of travelers on domestic flights each year. Southwest Airlines, not unlike others, offers these passengers paid wi-fi, but, more importantly, in-flight entertainment. The standard of that entertainment has changed immensely over the years. In the not too distant past, flight attendants collected discarded newspapers and magazines and offered them up to the next group of fliers for ‘entertainment.’

Today is vastly different due to the mediums now available and advances in technology which has effectively changed people’s desires. Take a look at this image.

It is a current pamphlet in every Southwest Airlines seatback notifying passengers that there is “in-flight entertainment.”

Let’s do a quick dive into these. Five types of “free” entertainment are promoted– movies, on-demand TV, messaging, live TV and music. How many of these are video-related items? 3 out of the 5!

Guess what folks? Airlines have chosen video as the preferred method of entertainment. I bet that there were focus-groups galore before they decided what amenities they wanted to adopt and market. You better believe they did that before adopting the technology along with the related expenses!

Of course, some passengers bring their own newspapers and magazines (because the airlines don’t offer them anymore, except for their own in-flight magazines). Passengers also bring digital reading material and… surprise… iPads with movies (hint: videos)!

There are many things these days that can be used to entertain people while stuck in a giant tube 15,000 feet in the air –all looking for things to … God help me… pass the time. Personally, I prefer to sit in the first-row isle seat -- I like to be the first one OFF the plane, rest my cowboy hat on my knee, and…watch movies that I’ve downloaded specifically for the flight.

If you are hesitant or uncertain about the impact video can have on your customers, just be observant on your next airplane ride and see what the majority of people are doing to pass the time… I would bet I know the answer.

If you ever travel with a cowboy hat, rest it crown up on the seatback tray to avoid any damage. Be sure to thank the flight attendants and, once you see that everyone is watching some sort of video content, take a break from any in-flight entertainment you may be enjoying, and look out the window once in a while. The Grand Canyon looks awesome from high in the air. The World is an amazing place to see!

Tim James shares his expertise on why stitched videos are still valuable to dealers in this video blog.

Today's consumers want marketing that is personalized to them. In the past, marketing has always been about broadcasting the same message to everyone. Attempting to catch as many "fish" as possible. That strategy no longer works in today’s modern world of consumer shopping behavior.

To truly capture a customer’s attention and win their business, you must focus on personalization. Many marketers utilize generic, bland, stock imagery, and video to tell their "story." This practice is so bad that a poet even created lyrics parodying marketing in a video titled, “This is a Generic Brand Video,” .

Somewhat ironically, this video ended up being supported and promoted by a company that sells stock photos and video. While the video may be a little dated, the message and lessons it implies still hold true today.

Technology has made it possible to personalize every video to every individual customer without having to do a lot more work. In the dealership world, that means that every personal communication, service video, vehicle walkaround, or employee introduction can be tailored and personalized. Sadly, too many dealerships are failing to take advantage of this ability.

It is well-documented how video content is hugely desirable and highly influential to today’s consumers. If you can engage these consumers with relevant content and become a resource, you are a step ahead of the game. Take it to the next level by then personalizing that video content, and you can blow your competition out of the water!

Your customers don’t want to feel as if they are part of the millions. They want to feel as if they are the most important one among the millions. If you can accomplish that, you will earn their business, trust, and loyalty. Watch the video again and be honest… how many commercials have you seen that employ those same generic marketing tactics? This video struck a chord with marketers because it is hilariously accurate. It did, in fact, go on to win awards.

People don’t care about you or what you are trying to sell them if you don’t care about who they are. Use today’s technology to leverage the power of personalization in your video marketing effort. You will find that anyone you are trying to win as a customer will choose to do business with you because you cared about them.

Flick Fusion COO Tim James shares why using video in service can increase service revenue and build trust with your customers.

Videos are essential for effective marketing and will continue to rise in importance in the future. They are engaging, and consumers would rather watch a video than click through a bunch of photos. I've talked plenty of times about the different types of videos. But for this blog, let’s get off VDPs for the moment. Some of the video content I recommend for dealers are how-to videos, vehicle walkaround videos, and reviews. This is excellent content for a dealership's website as these videos engage existing customers. But there is another benefit that dealers tend to forget – they also attract prospective buyers and service customers. The trick is that they must be easily discoverable.

According to an article on CEOWorld, matching your video title to a search and optimizing the video description and URL is an excellent way to increase your dealership’s SEO strategy and performance.

Everyone uses a search engine – mostly Google. On a basic level, Google delivers search results by deciding which content is relevant to the search and tends to favor local results first. For example, if a consumer were to search “Chevrolet dealership,” Google won’t serve up results for dealerships across the country, but rather those nearby. The problem is that how-to and video walkaround videos and reviews don’t show up in many consumer searches because dealerships fail to tell Google that their video is relevant.

Think about it. If a consumer is looking for a review of a new model vehicle, what do they typically type into the search bar? Most consumers will type in precisely what they are looking for. If searching for a review of a 2019 Chevrolet Silverado 1500, that is pretty much exactly what they type into the search bar. Or, if they want to know what a radiator flush is, that’s what they type in the search.

It makes sense to ensure that the title of your video mimics the questions a consumer is most likely to type into a search engine. You then show relevance to Google and will show up in searches. If you hit the nail on the head and the title of your video is an exact match for the consumer’s search, you are infinitely more likely to show up high in the organic search results. And not just Google but all search engines. Also, because Google favors local search results, chances are high that local consumers will be served up your video over others.

Video is increasingly favored by search engines, social media platforms, and consumers. Therefore, it’s imperative that your dealerships have an effective and comprehensive video marketing strategy in place.

Create content consumers want to see and be smart with your titles. Consumers will then be served up your dealership website as the answer they are looking for. And that’s a great thing for sales and service.

Flick Fusion COO Tim James explains why dealers should know which consumers are watching their videos and why it is important.

Urbandale, IA—June 4, 2019—Flick Fusion Video Marketing's internal data reveals that full-motion walkaround videos are the fastest growing video products among auto dealerships in 2019. As a percentage of total video views that consumers have watched on dealership websites, social media platforms and third-party auto shopping sites, full-motion walkaround video views have risen 20% in Q1 2019 compared to Q1 2018.

In Q1 2018, 15% of all inventory videos viewed were full-motion walkaround videos, compared to 85% of inventory videos that were stitched-photo videos. In Q1 2019, full-motion walkaround videos accounted for 18% of all inventory video views, while the remaining 82% of video views were stitched-photo videos. In Q1 2017, just 11% of inventory video views were full-motion walkaround videos.

"I believe the primary reason for this increase is because more people are seeing the significant impact that full motion walkaround videos have on their sales," said Tim James, COO of Flick Fusion. "However, I want to caution dealers that before you run out and sign up for a full-motion video package, make sure that you or your lot services provider is able to produce professional-quality videos."

To determine which type of video is best for your dealership's video marketing program, James recommends paying attention to view rate. Stitched photo videos have an average 70-75% completion rate, while some full-motion videos only have a 20% completion rate. "If the video is amateur quality, shot with a smartphone without a stabilizer and the audio is bad, you're better off sticking with stitched photo videos until your full motion video production process is improved."

Flick Fusion's data reveals that it's the use of any video that's the driving factor, and that both stitched-photo and full-motion videos are important to increase website conversion rates. In fact, James notes that when a dealership first switches from using only inventory photos to stitched-photo videos on their VDPs, the website visitor engagement rate spikes significantly. So, if a dealership doesn't have a process in place, or if their photography company doesn't yet offer full-motion videos, stitched-photo videos are still a better option than inventory photos alone.

More important than the type of video is the exposure of the video. "What baffles me the most is when I see someone shoot a great full motion walkaround of a vehicle to post to their Facebook page, but then don’t have that same video syndicated to their website and 3rd Party listing services to improve their merchandising of that vehicle on those sites," said James.

"That same vehicle is going to get just as many, and probably a lot more, views on these other sites than it will get on their Facebook page, but they won’t take the time or use the right technologies to get that video working for them across all of their online marketing touch-points," he added. James recommends that if someone is going to take the time to shoot a full motion walkaround for one touch-point, ensure that video is used across all online marketing touch-points.  "Your efforts will be rewarded 10X," said James.

Another benefit to investing the time to shoot Full Motion Inventory Videos is that you can repurpose those existing videos for Personalized Walkarounds.  Many sales & BDC professionals want to shoot Personalized Walkaround videos for their leads; however, it can be a time-consuming process and the weather doesn’t always cooperate. With today's technology, lack of time and weather conditions are no longer excuses to not make videos.

"Shooting Personalized Walkaround videos can be a 15- to 20-minute process on a good day, but what if it’s raining, snowing, hot, or cold outside," said James. "With today’s technology, you can simply take an existing Full Motion Inventory Video, click on a button and record a personalized, custom voice over on top of the existing video. It takes about two minutes, is done from the comfort of your desk, and you'll see a massive increase in your lead follow-up response."

For more information contact sales@flickfusion.com or 515-333-4337.

About Flick Fusion

Flick Fusion offers a full-solution video hosting, marketing and distribution platform to automotive and other inventory-based industries. The platform delivers automated, integrated and rule/behavior-based, including geo-targeted, video content in real-time, across multiple touchpoints and throughout the entire purchase cycle.

Flick Fusion makes it easy for dealers to create desktop and mobile-friendly vehicle inventory videos, video email and customer engagement videos such as testimonials, service department overviews and more. Videos are proven to capture more buyers' attention, advance organic SEO rankings, generate leads and increase conversion rates. The Flick Fusion system builds emotional value and customer loyalty for more than 3,500 brands and preferred partners.

Stitched photo videos have been around awhile. I’ve had many people ask me lately if they are still relevant, do consumers really watch them, and why dealers should have them when they already have a large number of photos and vehicle description on the VDP. My response is to remove personal opinions out of the equation and let the “data” do the talking.

The reality is that stitched photo videos can be the most important type of video content your dealership has. Consumers are video-oriented and, while it is good for a dealership to have a large number of photos of a vehicle on their VDP, consumers simply don’t want to scroll through all those photos or read all the text in the description.

If you aren’t going to invest in a full motion inventory video, then you must provide consumers with a stitched photo inventory video at a minimum. Consider this, the completion rate for a stitched photo inventory video is 70-75%! Think about that. If consumers did NOT like them, would they watch a stitched photo video for an average 1-1/2 to 2 minutes right through to the end? 

The fact is, Google identified Inventory Videos as one of the most desired types of video content that today’s shopper is looking for. Dealerships who add inventory videos (stitched photo or full motion) traditionally see a 10-15% increase in total leads (all sources), appointments, shows, and sales. And when incorporated into an integrated video marketing strategy, these numbers can easily double. 

Our lives revolve around video already. We watch video reviews, TV, news, Netflix… whatever. We don’t unroll the daily newspaper anymore. Everything is on demand. And that’s what consumers want.

Let me reiterate, just to be clear, I’m not saying that stitched photo videos are the BEST form of video marketing. But, for those dealers who have yet to make the commitment to full motion inventory videos, or who don’t want to pay a service to create them, my suggestion is that stitched photo videos are, at minimum, the most essential inventory marketing piece these dealers can have.

Why?

Because the data proves it. They increase VDP Engagement from your shoppers, raise your Time on Site (which Google loves), and they generate more leads than SRP's and VDP's that only have still photos. Is that enough reason? I would certainly think so, especially if your dealership is already taking those multiple photos of the vehicle. If that's the case, stitched photo videos are the most straightforward solution and are very effective.

One last point that should be mentioned here: one of the most important reasons you need an inventory video (stitched photo or full motion) is to get your Value Proposition, Testimonial, and FAQ videos in front of the shoppers at that phase of the buying cycle. There is no other way to get this rich video content in front of the shopper while on the SRP/VDP, other than using the Inventory Video as leverage. This is the most critical time for that video content to be viewed!