Study Finds Next Gen Video Drives Loyalty, Consumers Punish Brands That Don’t Personalize
Consumers continue to raise their expectations for video in brand communications.
The 2025 State of Video Technology report reveals that 78% of consumers want brands to use video more, a video gap between expectation and reality has been ongoing each year of this study. But consumers don’t just want more video — they want more from video. They push for innovations like interactivity, AI and personalization.
Gen Z and high earners as well as digital-first consumers are the most interested in this kind of next generation video, making it clear that brands that want to engage these high-value demographics need to up the ante.
And these aren’t just preferences. Delivering on consumer expectations when it comes to video innovation drives real ROI. According to the data, people are 58% more likely to buy from businesses that use next gen video.
Fortunately, businesses are eager to take advantage of AI to increase their video output. An overwhelming 82% of marketers and 84% of business executives are excited about text-to-video AI tools, uniting doers and decision-makers to tackle the video gap head on.
This market study, now in its fourth year, surveyed 2510 adults across the U.S. and U.K. to uncover the latest trends. Conducted by Atomik Research and commissioned by Idomoo, it builds on past findings while adding new layers like business perspectives on AI video tools.
Curious about what’s driving video demand in 2025? Read on for the top video marketing statistics from this year’s State of Video Technology market study.
Brands Don’t Deliver Enough Video.
While nearly 8 out of 10 consumers want more video from brands, over 4 in 10 (44%) say they’ve never received video from a brand they do business with.
Since many companies use video for generic outreach like TV ads, it’s likely that such video content misses the mark on personal connection — something consumers crave and next gen video delivers.
When they do get video, though? Consumers love it — 82% of recipients are happy with what they see. It’s a low bar for brands to clear.
A look at the video gap:
- 78% of consumers want more video from brands.
- 92% of Gen Z and 84% of high earners feel the same.
- 44% say they’ve never received video from brands.
Personalized Video Outperforms Generic Video by 3x-4x
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As mentioned above, it’s not just video content that consumers are looking for. They demand next generation video that does more than traditional video content. This includes personalized video, which an overwhelming majority of consumers are interested in.
This has a direct impact on consumer behavior. The report shows personalized videos are 3x-4x more likely to boost positive sentiments and behaviors — think trust, loyalty, and feeling valued — compared with generic video content.
For example, personalized video is 3.5x more likely to make someone become or stay a customer, which has a direct impact on a company’s bottom line.
Personalized video vs. generic video
- 3x more likely to make customers recommend a brand
- 4x more likely to make them feel valued
- 3x easier to understand
- 3x more likely to build trust
Younger consumers are especially interested in personalized video. A staggering 93% of Gen Z say they want personalized video content from brands (this is part of why using video to reach Gen Z is so essential). And millennials aren’t far behind at 88%.
Consumers Punish Brands Who Don’t Personalize
We’ve been talking about the positive side — more trust, feeling valued, good vibes. What happens when brands don’t deliver?
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For one, we know personalization isn’t just desired; it’s expected. And when brands don’t personalize, consumers are unhappy. An alarming 44% of all consumers get upset when communications aren’t personalized to them. That’s even higher for Gen Z and millennials, over half of whom feel this way about generic brand comms.
The good news is that most consumers (76%) trust companies to keep their data secure. And younger consumers who want personalization more also report higher levels of trust, showing that companies can meet this expectation by showing the value they can deliver by leveraging personalized data.
Personalization stats at a glance:
- 76% trust companies to keep their data secure.
- 74% of consumers want more personalization from brands.
- 44% of consumers get upset when communications aren’t personalized.
The Young, Affluent and Digital-First Demand Next Gen Video
As in previous years of this study, younger and wealthier consumers are again at the forefront of the push for next gen video.
The data shows that Gen Z and high earners share a fierce appetite for video, including all kinds of innovation. As mentioned above, 92% of Gen Z and 84% of high earners want video, but their demand is even higher for personalized video (93% and 88% respectively).
And the same is true for interactive video where 93% of Gen Z and 86% of high earners are interested in receiving this kind of content from brands.
Percentages this high are rare in market studies, showing just how much these cohorts are clamoring for innovative video content that grabs their attention and engages them in a meaningful way.
The consumer preference isn’t just talk — it drives action. Gen Z and millennials are 33% more likely than other generations to buy from brands that use next gen video content. High-income earners are 15% more likely to do so than consumers at other income levels.
Digital-first consumers (those who identify themselves as “extremely comfortable” with technology) are also all in. They’re consistently more excited about personalized, interactive, and AI video than most: 86% are interested in personalized video and 85% are interested in interactive video.
High-value consumer video preferences:
- 93% of Gen Z want to receive personalized and interactive videos from brands.
- 88% of high earners want personalized video and 86% want interactive video.
- 86% of digital-first consumers want personalized video and 85% want interactive video.
- Over 75% show interest in AI video (76% for digital-first and Gen Z; 77% for high earners).
In short, if you want to engage these demographics, next gen video is the way to do it.
Omnichannel Is Non-Negotiable
How should brands deliver video? Email’s still king but slipping. It’s on the No. 1 spot as the most preferred channel for all brand communication — but only 28% of people put it there compared to 36% last year (and 52% back in 2022). Preferences are splitting across SMS, apps, social and more.
This is an easy action item for brands. Go omnichannel. The data shows that 74% of consumers want brands to communicate with them through multiple channels. That rises to 84% for Gen Z and 79% for high earners.
Channel preferences:
- Email is the favorite with 28% listing it as their most preferred channel.
- 74% of consumers want multichannel communications.
- 84% of Gen Z and 79% of high earners agree.
93% of Gen Z Want Interactive Video — Again
Last year, 93% of zoomers told us they were keen to get interactive videos from brands. This year, they said the same, further validating 2024 findings.
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And they’re not alone in their enthusiasm. A solid 77% of all consumers are interested in getting interactive videos from brands. Yet only 30% have actually received it. This is another video gap — a miss for most brands that means a big opportunity for those willing to rethink their approach to generic, non-interactive video content.
At 89% and 86% respectively, millennials and high earners have especially high interest in interactive video. Digital-first consumers are enthusiastic too: 85% are interested with 49% saying they’d “love it.”
Who wants interactive video from brands?
- 77% of all consumers
- 93% of Gen Z
- 89% of millennials
- 86% of high earners
- 85% of digital-first consumers
As mentioned above, these numbers are unusually high for a consumer study, hinting at untapped potential brands could jump to see big wins, especially with younger, more affluent and tech-savvy crowds eager to engage.
AI Video Is Gaining Traction
AI video is the new kid on the block when it comes to advanced video tech, so it’s encouraging to see a majority (65%) of consumers interested in getting AI-generated videos from businesses.
Only 20% of consumers say they’ve ever gotten such a video from a company, but it’s highly possible they wouldn’t know if they had.
When they do have the option to choose between text and an AI video, they choose the latter. Between an AI video generated from a document and the document itself, consumers are 2x more likely to choose the video.
Millennials lead here — 78% are into AI video. Brands can use this to simplify content creation and meet demand.
Open to getting AI videos from brands:
- 65% of all consumers
- 76% of Gen Z
- 78% of millennials
- 77% of high earners
- 76% of digital-first consumers
Note: Consumers do have some concerns about AI: 29% cited its potential lack of personalization while 61% mentioned the risk of inaccurate content (which a process called retrieval-augmented generation prevents). These concerns should be addressed by brands leveraging AI for scaling video output
Next Gen Video Helps Brands Engage Diverse Audiences To Foster Inclusion
Nearly 9 out of 10 (88%) of minority racial and ethnic groups say they want more video from brands. They’re also more likely to want personalized and interactive video than white consumers.
Why? One possibility is that next gen video improves communication — 86% of minority consumers say personalized video makes new products and services easier to understand. They’re also 2.5x more likely to prefer to receive an AI video generated from a document rather than the document itself. White consumers have the same preference, but not quite as strong.
Brands who don’t deliver on consumer expectations risk alienating these demographics. Over half of minority consumers get upset when communications are generic, especially African Americans (55%) and Hispanic or Latino (63%) feeling the strongest about it.
Demographics who feel a personalized video shows the brand cares:
- 85% of all minorities
- 87% of African Americans
- 90% of Hispanic or Latinos
- 76% of Caucasian
The mandate for companies? Prioritize next generation video in your customer communications to show you care about customers and want to make information clear and accessible.
Businesses Are Eager for AI To Create Videos
New this year, we surveyed an additional 505 business owners and freelancers to get their take on video innovation. We combined this with insights from others in fields ranging from customer service to marketing.
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What did we find? First, people want to use AI to make videos in the field they work in. For customer service, they were most likely to want to make customer support explainers. Marketeers were most likely to want to make ads.
Demand for an AI tool that turns text into video is highest for business execs, 84% of whom are interested in this kind of tech. Most (86%) also said they would increase their video advertising if they had access to an AI that could create video ads in minutes. Luckily, this technology exists today — and AI videos can even be personalized and interactive, providing the more bespoke experience that consumers (especially Gen Z) expect.
Spotlight on businesses:
- 68% of business owners are interested in a text-to-video AI tool.
- Consumers who create AI videos care most about quality.
- If they had a text-to-video AI, 50% of salespeople would make sales videos.
- With the same tool, 51% of marketers would make ads.
- 86% of execs would do more video ads if they had an AI that could make them in minutes.
Closing the Video Gap
So what’s the bottom line? Consumers, especially the young and affluent, expect next gen video. Brands who don’t deliver — and the data shows that’s most brands based on what people are (or rather aren’t) getting.
AI and personalization can deliver value fast. The report shows personalized video delivers 3x-4x times the loyalty boost of generic video while 58% of consumers are more likely to buy from brands using next-gen video. And consumers welcome AI video, especially when it makes information easy to understand, meaning businesses can leverage AI to scale video production without scaling time, budget and resources.
It’s a win-win: Consumers get what they want, and brands see measurable ROI. The tech’s here, the demand’s loud — it’s time to act. Looking ahead, 2025 could be the year brands finally catch up — or risk losing ground to competitors who do.
Want to see how next gen video can wow your customers? Click below to get in touch?
Looking for the full report? Download the 2025 State of Video Technology for additional video marketing statistics, charts, trends from past years and more. Speaking of past years, you can also access our reports for 2024, 2023 and 2022 to see how consumer preferences have changed over the years.
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