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Saturday, March 30, 2013

If a picture is worth a thousand words, what is video worth? Literally.

Guest post from Video and Beyond blog.  

Just over a month ago, Kulin Strimbu of Trip Television asked me to be a guest blogger on Video and Beyond.  She knew that I have a passion for all things related to marrying buyers and sellers (aka distribution in "travel speak").

I have to admit, I didn't know much about video (at least as it relates to distribution) before I started writing for this blog, but in the past month I have gotten a rapid education and I am hooked.

So today, I want to get serious with you about the effectiveness of an integrated video strategy to sell your products and services.   If a picture is worth a thousand words, what is video worth?  Literally.

I grew up in an era of watching Carol Burnett and remember thinking how clever it was that she ended all of her shows by tugging on her ear.  It was her signature and it was her way of acknowledging someone special in her life.

I didn't understand marketing then, but four decades later, in all of my own blogs, I end my tomes with "Stay Tuned".   That signals that the industry that I belong to (travel) is ever changing.

When I took on the guest blog role on Video and Beyond, I encouraged Kulin to do the same and come up with her own "signature line".  That line is "What are you waiting for?".

Well, it is time to cut to the chase.  While we want you to keep coming back and sharing our musing about the topic as regular subscribers to our blog, but as my old friend Timothy O'Neil-Dunne would say, I am gobsmacked (that is British slang for astonished) that the conversion stats alone don't already have you running toward an integrated video marketing strategy.  Kulin's phone should be ringing off the hook right now.

So let's look at the numbers.  I happen to run a number of online travel booking sites (affiliates of the major OTAs).  So, I have some empirical evidence to work with here.

For an organization selling $10 million in annual hotel room sales, to increase conversion by 1% would yield over $38k dollars per month in revenues.   That is $456k per year in incremental revenue.   That is an amazing ROI, even if we only incorporated video for our top selling properties (which most of you know generated the bulk of the revenues for any business).

While your numbers may vary, depending on whether you are working with merchant/wholesale model sales , a retail commission model or whether you are the supplier, if you don't know what every 1% of conversion is worth to you online, run do not walk to your calculator or spreadsheet and figure it out.

-->You are clearly going to have to do your own math, but Invodo says that shoppers who view video are 174% more likely to purchase than viewers who do not.

Did you hear that?   174% more likely to purchase!

I'm going to borrow Kulin's line today and at the same time, I'm tugging on my ear for good measure.

What are you waiting for?

Chicke Fitzgerald
distribution afficianado





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