There’s no denying it: Video is one of the hottest topics on the web. From short videos to product demos to webinars, videos are in demand among all demographics.
Gen Z, for instance, loves TikTok. Not only is it their top platform for watching short-form video, but they’re even relying on it as a search engine. Meanwhile, millennials spend their free time (roughly 1.5 hours per day) browsing through streaming services. Even older demographics love video. Over half of baby boomers watch online videos, mostly on Facebook.
But it’s not just consumers who enjoy video. Businesses across industries are leveraging video content and getting real results. According to Wyzowl, 95% of businesses see video as an important part of their marketing strategy, and 93% say it’s given them a good return on investment.
It’s obvious businesses value video marketing. Conversions, customer trust, user stickiness — these are just a few of the benefits driving the popularity behind video marketing. We’ll dig deeper into how video delivers these better business results below.
The Rise of Video Marketing
How has video become the popular digital marketing tool it is today?
It all began with YouTube. Google bought the platform less than 2 years after its launch, hoping to tap into the power of the site’s viral videos. Spoiler alert: It worked. Video marketing took off, and businesses began to use the website to get their products in front of billions of viewers. Today, YouTube is an advertising powerhouse:
- YouTube generated $50 billion in combined ad and subscription revenue in 2024.
- Video advertising on YouTube has a potential audience of 2.54 billion users.
But marketers aren’t leveraging video content just because it’s popular — they’re doing it because creating professional videos has never been easier. The video production process can be as simple as using a smartphone and a video-hosting site. In fact, some of the most popular videos are shot with just an iPhone.
With short and simple videos growing in popularity, it’s now feasible for both small businesses and large enterprises alike to reap the benefits of video marketing.
Here’s just one example of a personalized marketing video that worked. It was a heartfelt thank-you from the Canadian Red Cross to their supporters. It showed donors why their support mattered instead of just telling them.
The video generated a whopping 17x ROI compared to the control group without video. When we say “video marketing works,” this is what we mean.
Why Video Marketing Works
Audiences can’t get enough of video, and top platforms have taken note. Instagram has an entire section dedicated to short-form videos, while Facebook overhauled its feed to be more like TikTok. Businesses, too, have caught on, with nearly 90% using video marketing.
But what makes video so effective for brands? Below, we break down the key benefits that show why video marketing works so well.
1. Video Speaks to the Brain
When it comes to sharing information, humans are wired to respond to what they see and hear. Our brains process visual and auditory cues faster than text alone, which is why video is such an effective communication tool.
According to behavioral science, our decision-making involves 2 systems in the brain.
- System 1 reacts fast, almost automatically, processing audiovisual information and generating emotion.
- System 2 is slower but analytical.
Video speaks straight to System 1, using visuals and sound to grab attention, tap into emotions and nudge people toward action, often before they even think about it.
In other words, video doesn’t just tell your audience something — it shows it and makes them feel it. For marketers, that means your message lands faster, sticks longer and builds a deeper connection with your audience.
2. Visual Storytelling Builds Trust
Customer trust is incredibly valuable — especially during times of high stress and uncertainty.
Think back to the pandemic, for instance. A whopping 74% of customers expected brands to communicate their efforts to deal with COVID-19. Many were asking: Could consumers trust banks to help with their financial issues? How would airlines handle a surge in cancellations?
That period was a chance for businesses to build trust among customers — or break it. One of the most effective ways to win customers’ confidence? By telling a story that resonated with their emotions, not their wallets — and the best storytelling tool available is video.
This marketing campaign from Dove is a great example. To show their commitment to helping, Dove pledged to donate over $7 million in support of healthcare workers. That alone would be impactful, but to show customers the emotions behind their mission, they put their message in a powerful brand video.
The story highlighted healthcare workers in need of support, tugging on customers’ heartstrings and driving deeper connections — critical for building trust. As we mentioned earlier, humans respond first with their feelings. Video amplifies that response. In fact, 87% of consumers say video quality impacts their trust in a brand.
By combining emotion with high-quality video, Dove didn’t just win hearts — they strengthened confidence and even won 2 awards at the Cannes Lions International Festival.
3. Video Marketing Boosts Conversions
It’s one thing to get lots of video views — it’s another to turn those viewers into valuable leads or customers. It’s not a far-fetched goal: 87% of people have been convinced to buy a product or service by watching a video about it.
This video from Entain is a great example of how video marketing increases conversion rates.
Looking to encourage customers to redeem an exclusive reward, Entain was curious as to which medium would work best to deliver the special offer. In an A/B test of messaging players in a text pop-up versus a video, the video won by a landslide: 88% of customers redeemed their reward offered in the video.
Why did it work so well? A video doesn’t tell the viewer why they should take action — it shows them. Eye-catching visuals and audio work together to create a more convincing, immersive experience that appeals to customers’ buying decisions. Plus, the video was personalized for each customer, making the offer feel relevant and compelling.
This kind of dynamic, tailored content is what we call Next Generation Video. It goes beyond the one-size-fits-all approach of static video, giving each viewer a uniquely relevant experience that drives action. No wonder consumers are 58% more likely to buy from brands that use Next Gen Video.
4. Video Improves Your Current Customers’ CX
Video marketing is perfect for your current customers. Whatever you’re trying to communicate, sending your message in a video that’s fun to watch and easy to understand improves the customer experience. In fact, 78% of consumers say they want brands that communicate with them to use video more.
You already know what your customers want, so why not put your data to work with a video that speaks directly to their needs? A Personalized Video does just that, driving up to 9x more conversions.
Tailoring your video marketing strategy to every single customer is easy with a Personalized Video platform. Combine video creative with your customer data — or let your customers fill in their own data with Interactive Video. The result is a hyper-personalized video 100% unique to every individual.
Check out this Personalized Video campaign from AutoNation as an example. This video is full of details personalized to the viewer, including their name, the year they became a member and their car model.
Adding personal touches is a powerful way to wow and delight your current customers, which drives retention and customer loyalty for the long term. Videos like these turn routine communication into an engaging experience, showing your customers that your brand understands and values them.
5. Explainer Videos Break Down Complex Topics
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Sometimes, even the simplest tasks can feel overwhelming — especially when your customers are navigating complicated products, services or processes. That’s where explainer videos come in. They break down complex topics in a way that’s clear, engaging and easy to follow.
Think about logging onto your account with your bank. It’s confusing to navigate. You end up leaving the site, frustrated and annoyed. It’s a common point of friction for many customers — one that leaves them with a bad impression of your business.
Now imagine your loan servicer emails you a video explaining how to use your account, such as the one below from Chase. You have a step-by-step guide at your fingertips and can learn how to access and use your account in under a minute. It’s short. It’s clear. Plus, you can watch it at any time.
The above scenario is just one of many examples of why video marketing is effective in explaining any and everything to your viewers. In fact, 78% of people prefer watching a video to learn about a product or service over materials like articles, ebooks and infographics. How-to videos even have the highest average engagement rates, regardless of length.
Another industry that often deals with nuanced topics is higher education. The beginning of the school year is exciting, but there’s one step students dread: dealing with financial aid. It’s confusing, time-consuming and stressful.
To make the process easier, Lewis University sent out the following financial aid explainer to its students.
Students often receive pages upon pages of policies and deadlines when it comes to their financial aid, causing information overload. This video, on the other hand, gave students a clear explanation of their financial aid in a matter of minutes. Plus, engaging visuals and scenes from campus life made the entire experience more engaging and enjoyable.
6. Video Is Perfect for Social Sharing
Videos reign supreme on social media. From YouTube to TikTok to Instagram Reels, video content is what users want across platforms. Just take a look at the numbers:
- Video accounts for nearly half of all time spent on Facebook.
- 74% of consumers say they engage with ads on Instagram Stories.
- 82% of video marketers use social media to share their videos, with the channel achieving the highest ROI of any other video marketing channel.
Converse is one business that’s reaching its audience through eye-catching videos on its social media platforms. Wouldn’t this product video make you pause as you’re scrolling through your feed?
Perhaps the best thing about video is that they’re super shareable. According to AP, 70% of consumers say they’re likely to share a video on social networks.
One of the most shareable types of videos we see time and time again is highlight reels. Users receive a video recapping all of their best moments that they can then show off to friends and followers. It’s humblebragging made easy.
For businesses that aren’t sure what their viewers want to see, Interactive Videos, such as this one from WW (formerly Weight Watchers), allow viewers to hand-pick what they’re most proud of.
Every viewer received their very own video that they could customize to their liking, straight from the video player. Viewers could then share the achievements they’d hand-picked themselves with followers. Not only does this increase sharing, but it also celebrates each member’s accomplishments, boosting brand love.
Interactive Video is especially helpful when you don’t have customer data to personalize with. By letting customers customize their experience, they share their preferences voluntarily — easily, enjoyably and in a way that gives you richer first-party data.
7. Video and Email Work Well Together
Customers click through blocks upon blocks of text as they check their inbox. To spark their interest, you need your email marketing campaigns to be full of content that will actually engage them.
Including video content helps your email campaigns stand out among the sea of messages your customers receive. They pack a punch with visuals and audio that tell an attention-grabbing story. Something as simple as including the word “video” in your subject line can even boost open rates by 6%.
Video can make any message exciting. Delta, for instance, was able to turn air travel into a visually stunning story with the power of video. Imagine receiving this in your inbox. It’s short. It’s engaging. It’s personalized with your name.
As we touched on before, videos are also incredibly effective in driving conversions. Sending your customer a video like this can increase their chances of clicking on your CTA, taking their customer journey beyond your inbox.
Did you know? When it comes to what’s inside the email, Gen Z and millennials both prefer video content — over 80% more than other generations.
8. Search Engines Love Video Content
Search engines are designed to give the end user the best search results possible — and these days, that includes video. Search results featuring a video thumbnail now make up 30% of all organic searches — up 72% since 2023. Meanwhile, the number of short-form videos appearing in search results has jumped 183% in just 2 years.
It makes sense, then, to use video in your content marketing strategy. It can increase your SEO ranking and bring in more organic traffic and potential customers.
Video marketing also boosts user stickiness — a metric Google uses to determine rankings. It makes sense. A user chooses to spend time on a page because there’s value in what’s being said. These pages are most often those that include videos, meaning your pages should, too. Research shows internet users spend 1.4x as long on pages with video as those without.
It’s not just traditional search engines, either. Younger generations are now using social video platforms like TikTok as search engines, looking for answers, reviews and how-tos. By creating content for these platforms and linking back to your site or landing pages, you can reach a new audience, boost brand awareness and attract new customers where they’re already searching.
Do More With Next Gen Video
We’ve spent a lot of time talking about why video works — and it does, undeniably. But what if you could take it even further?
Enter: Next Generation Video. You’ve seen them — some of the videos we’ve showcased above fall into this category! Next Gen Video can be personalized to an individual, interactive so viewers can customize their experience and even AI-generated. The result? Video that does more while costing less in time, money and effort, boosting your ROI across the board.
Our Next Generation Video Platform is built for this kind of innovative video, capable of rendering a few million Next Gen Videos at a time. And if you want to streamline the creative process even further, Lucas AI Video Creator is a game-changer.
Lucas only pulls from your approved content, ensuring every video is accurate and visually aligned with your brand. For instance, Lucas recently created an AI Personalized Video for Longboat Mobility. Even with revisions and back-and-forth approvals, the entire process only took 4 days.
But projects can be done even faster. Our in-house lead gen expert created a full series of video ads in under 10 minutes.
Quick fact: Consumers see the appeal of AI video, too. They’re 2x as likely to prefer receiving an AI-generated video from a document than the document itself.
Video Marketing for Better Business Results
Video marketing is both popular and powerful — but with so many companies using video these days, how can you stand out? By taking your video campaigns to the next level with Next Generation Video.
Next Gen Video works harder than traditional video, doing more to impress your target audience and keep them engaged. More importantly, it’s designed to drive results, helping you get the most out of your investment.
We’d love to show you how our full-stack open platform makes it easy to create dynamic, hyper-personalized video campaigns. Get started by scheduling a 15-minute call.
