Tag Archives: statistics

Case Study: Direct Mail vs. Email Marketing with Video

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Originally posted on the SmartMarket Media Blog

mail-vs-videoHere are some amazing statistics from a client of ours that recently did both a direct mail post card and an online marketing video sent out via email to the exact same client base. They did both methods because they wanted to make sure all of their customers were touched and also because they didn’t have all of their customers email addresses. Due to client confidentiality limitations, we cannot disclose our client’s name.

Business Needs

The business is a service oriented operation with predominantly a business-to-consumer base. They also have a reputation as an environmentally responsible company and try to do what they can to diminish the amount of waste they create. This business was beta testing a new service which would streamline how their customer base would interact with their services. To clarify these changes, answer any questions their customers may have, etc. they needed to reach out to their entire regional customer base of about 16,000 customers. Their objective wasn’t a direct call to action for their customers – but simply to notify and educate them of the new service and to make sure their customers knew who to contact if they had any questions about the service.

Solution

Their internal marketing department had already planned to send out a postcard with a follow up brochure to their entire base of 16,000 customers. They did have over 6400 email addresses for a portion of their client base, so we suggested incorporating an email marketing e-newsletter linking to a short interactive video explaining the changes to the service and including helpful links for more information, download a PDF of the brochure or to contact someone at the company. The postcard was sent out first and the email newsletter with links to the video was sent out two weeks later.

Results

Postcards sent: 16,000

Direct replies & requests for further information: 12 or 0.075%
(responses were entirely phone calls about the program)

Costs: includes design & printing of postcard, ink jet printing of addresses and postage = $5,470*

*if you include the design & printing, ink jet printing of addresses and postage for the brochure as part of this campaign  – the overall cost was $12010.

Emails Sent: 6406

Statistics:

  • Open Rate (OR) – 43.8% or 2804
  • Click-Through Rate (CTR) – 44.7% or 1254

Direct replies & requests for further information: 146 or 2.28%
(responses were entirely email responses about the program).

The email responses varied – many were requesting further information, others were thanking the company for how clearly the email, PDF and video explained the upcoming changes to their services and a handful expressed gratitude for the company keeping their message environmentally friendly by using email with the video.

One respondent when asked about the post card remarked that they “didn’t remember ever seeing it” and assumed that they had “thrown it with the rest of the junk mail in the recycling bin”.

Costs: includes email service provider subscription*, web hosting provider & domain for landing page*, design for email newsletter & landing page to host video, PDF and FAQs about program and the online video production = $4176

* Email Service Provider (ESP), domain registration and web hosting were all yearly billing costs included in the overall budget for this one campaign.

Final thoughts

From the perspective of action the clear winner was email marketing with video which garnered a response rate that was 11x higher than direct mail. While their varied customer demographic will never allow for a completely emailed list, the results from direct responses and the ability to track the emails effectiveness through the email service providers statistical tracking data are obvious.

From a cost perspective on the single campaign its also clear that email marketing with video was obviously not only more effective but far less expensive. This is especially noticeable when you factor in that the email service provider, domain registration and web hosting costs (in the amount of $901) were all for one full year, not just this single campaign.

This brings up another important issue, which is that this service was only launched to a fraction of their customer base as part of a beta test of the program. So if they choose to open the program to a wider selection of their customer base – with direct mail all of their production costs will repeat (with the exception of their initial post card design costs if there are no edits to the content) while with email and video they will absorb a fraction of those email service provider and web hosting yearly fees and they may need to tweak the email content but other than that the second blast of this information using email marketing and video is completely paid for and they have endless distribution.

The company’s program director expressed his thoughts on how the campaign worked out by sharing, “E-mail made it so much easier for our customers to respond because they could simply click to reply to get more information. They also loved the fact that the video so clearly illustrated how the new service would work.”

Online Video Driving Automotive Recovery

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constant-contact-zak-barronIn a great article recently published on the Online Video Insider by Eric Franchi, some great statistics and insight were shared which are particularly timely given Chrysler’s and General Motors’ recent bankruptcy announcements. Perhaps as they pick which road to take the companies future on they should reassess their level of participation in social media and particularly online video.

Here were a few of the highlights from that post for the automakers to keep in mind and my thoughts on these suggestions:


“83% of new vehicle buyers visit video focused Web sites prior to purchasing a car. This means 31% viewed videos on brand, product or company sites; 24% on auto-specific Web sites, 11% on YouTube; 7%, Yahoo Video; 7%, news sites; 6%, MSN Video; 4%, MySpace; 3%, Facebook; 3%, AOL Video; and 3%, other.”

These numbers from a recent Google sponsored study highlight a few really important factors that automakers need to keep in mind regarding online video and how viewers are searching and researching online. I’d be willing to bet that in a short amount of time YouTube, Yahoo Video, Facebook, etc. will garner a much larger piece of the viewership.


“Don’t skimp on production. A full one-third of auto shoppers watch the video content on the product site.”

So once you have the viewer engaged with a demo of the vehicle, why not lead them to other videos of the same vehicle they are looking at instead of (or maybe in addition to) pages of text information? Maybe it’s crash tests…shown from different angles? Maybe keeping something fragile like an egg inside safe during the crash? You can get really creative here but the object is to keep the viewer engaged and on your site.

Think about Blendtec and how they engaged their viewers by showing them real simple demonstrations of how their blender worked by blending ridiculously common things. Many of those interested viewers became brand loyalists for them.


“Investigate the broader video opportunity. Brand and auto-specific sites only make up slightly more than half of the automotive shopper’s online experience. Creating a presence on YouTube and other video destinations will help round out the plan.”

Why stop there? While video sharing sites like YouTube are a place that I think the automakers MUST have a presence, what about Facebook, LinkedIn or smaller automobile enthusiast user groups? The automakers could use these brand enthusiasts and interested buyers for research and development. They could find out what features and options people are REALLY looking for in a car. Let the group members participate in the design of new cars, show them videos of new concepts as they are created based on the group’s input and get feedback from the group. Imagine that kind of empowerment could turn them from potential buyers into the automakers brand evangelists.

David Meerman Scott wrote an outstanding post on marketing ideas for the automakers reinvention outlining 5 simple things GM could do to accelerate their hopeful rebound. I hope GM and Chrysler read his post because it had some great ideas. Automakers will be under a watchful eye with their marketing budget, so doesn’t using a tiny portion of their bloated television advertising budget to put a creative online video and social media plan together just make sense? Obviously I think so…what are your thoughts?

Welcome to the Jungle: Quick Notes from Jeff Pulver's Social Media Jungle Boston 2009

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crowdThere is nothing better to me than getting to meet many of the people I have conversations with online in person. Social Media Jungle event organized by Jeff Pulver was no exception. There were around 120 or so attendees and he was able to assemble some of the areas best social media thought leaders to lead some amazing discussions. Here are a few quick observations of mine from various speakers at the event:

Jeff Pulver – “ Sometimes You need to be Vulnerable”

pulverThe organizer of the event kicked it off and had some great thoughts about connecting with people as people…social media isn’t a numbers game although that is how some people would make it out to be. He also assesses his relationships online regularly and has recently removed around 3,000 “friends” from his Facebook profile. He regularly assesses those that he is connected to – do they engage in conversation? Have they brought something to the relationship in the past year? If the answer is no, then he removes them.This example was to stress his point that it’s all about building relationships and you have a “social” responsibility to define yourself as a person. People don’t interact with brands – they interact with the people behind those brands. Connect with people AS people. So being vulnerable is the secret to success in social media.

Another interesting prediction Jeff brought up – He believes in less than 18 months Twitter will be sold for between 2-4 billion to either Google or Microsoft. We shall see…

C.C. Chapman – “It isn’t a numbers game. The human side of social media”

In C.C. Chapman’s presentation he built upon Jeff’s presentation focus by suggesting that you should disregard quantity of followers, friends, etc. and just focus on building trust. “Don’t forget your human. Be yourself.”

Richard Dale – “Twitter as the universal information stream: What if the Twitter stream told us every time a can of soda is sold?”

Raised some interesting questions about Twitter becoming more than it is. Will it have accounts you have to pay to follow? Will there be automated feeds to tell soft drink distributors to restock a vending machine? Automated traffic updates?

Laura Fitton – “Social Media for Social Good”

Laura talked about getting social media involved with charities such as WellWishes because she was passionate about clean water. She also brought up Twestival which hosted over 200 simultaneous TweetUps to raise money for clean water projects. The main thing she stressed is that the influencer is the idea and not the person behind it.

Justin Levy – “How Small Business can use Inbound Marketing/Social Media to Help Increase Their Business”

Justin talked about how he is part owner of Caminito Argentinean Steakhouse a steak house in Northampton MA and how he has cut their traditional ad revenues by up to 90% and had 12 consecutive months of increasing revenue – all because of social media. He also shared an acronym he made up: HELP which stands for “Hustle, Engagement, Learning and Passion.” He also added “S” for “Strategy” which is how social media “HELPS” his business continue to grow.

Chris Penn – “It IS a numbers game – thinking about what numbers actually matter”

Chris is a stats geek which I love (being one myself). His whole topic was based around “what numbers matter?” and it comes down to basic grammar the verb. Verbs carry the action in a sentence. What measurables in your statistics have verbs? You just need to define what actions are in your statistics to find what your truly valuable statistics are.

Stephen Dill – “Social Media Lessons Learned: From the perspective of a skeptical Online Marketer”

Stephen started by talking about the misconception that people feel they don’t have the time for social media. He then quoted Laura Fitton of Pistachio Consulting (who spoke earlier) as part of his presentation that “Twitter is Google Juice”. He stressed the importance of “benchmarking” on Google to measure the effectiveness of using Twitter. Stephen was competing on Twitter with a famous Confederate General who also had the same name as he did (having a famous horse jockey who won the Kentucky Derby I could empathize with his struggle). He stressed that rather than fall into the misconception that social media was a time waster, you should realize that the real power and reason behind using social media is the technology of search.

Leslie Poston -“Bringing Generations Together For Success In The New Millennium”

Leslie had a great presentation about generational engagement in social media. Her greatest point was the need for real mentoring. For “Gen Yers” to help the “baby boomers” embrace the possibilities of social media and the tools that are available as well as the “baby boomers” to help the “Gen Yers” to understand concepts and strategies they may not have learned growing up completely in a digital world.

Matthew Mamet – “Using online video to strengthen your relationship with your online community.”

Matthew talked about how social media in general is a noisy place to have your discussion but that video helps to change that because people use video to change their mood. He also had stats (again I’m an admitted stats geek) that 86% of people use video to change their emotional state. It just goes to show how an effectively produced video can reach your audience by utilizing emotional triggers.

Thanks also go to Joe Cascio, Doug Levin, Jason Jacobs, Leah Busque, Steve Garfield, Alex Chriss (also the event’s host from Intuit), Maria Thurrell and Mike Langford for sparking some other great conversations not mentioned here and to Jeff Pulver for putting on a great event!

Increased Click-Through Rate Statistics When Using Videos in your Email Marketing

How Much of a Typical Online Video Is Actually Watched?

 

 

How do people discover videos online?

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Once again TubeMogul has released some pretty awesome statistical analysis regarding how people find videos online, from embeds on blogs to video search engines. For a two-month period, they recorded inbound URLs for a sample of over 35 million video streams from six top video sites. But which sources drive the most video views? For the full report from TubeMogul Industry Analysis, continue reading here. Here are some of the highlighted statistics that I found truly interesting:

45% of viewers find a video by direct navigation to a video site (i.e. going to YouTube and searching or clicking around the featured or related videos).

No surprise here given that over 10 hours of video footage are uploaded to YouTube every minute that going directly to the video sharing sites and searching would be the top method of finding videos.

In terms of individual web sites referring traffic, no single source dominated, here are the top 20 individual referrers:

Site Share of Video Referrals
google 7.19%
yahoo 2.12%
facebook 1.93%
myspace 1.55%
digg 1.49%
stumbleupon 1.13%
msn/live 0.92%
blogspot 0.78%
aol 0.43%
reddit 0.29%
truveo 0.22%
flurl 0.21%
blinkx 0.19%
ask 0.19%
comcast 0.16%
twitter 0.15%
wordpress 0.15%
cnn 0.12%
wikipedia 0.11%
ovguide 0.06%

However, since there are a limited number of players in certain areas online, TubeMogul was able to infer that:

  • 11.18% of all traffic comes from search engines
  • 3.66% comes from social networks
  • 3.19% comes from social bookmarking sites
  • 0.63% derives from video search engines
  • 0.05% is directed from Email/IM
  • 80.88% makes up the rest of the referred traffic…of this mix it is almost completely made up of blogs from the thousands of different blogs they scanned.

Here are the really interesting facts here:

Digg beats StumbleUpon by nearly 0.4% for video referrals

I wouldn’t have guessed that. When I share videos on both social bookmarking sites my traffic from StumbleUpon is nearly triple the traffic I receive from Digg. StumbleUpon is my #4 traffic source for the website (which of course does include my blog posts) bringing in 9.97% of my site traffic while Digg is my #10 source of traffic (also including my blog posts) accounting for about 3.85% of all my site traffic. About half of my bookmarks are for videos while the other half are for blog posts (possibly even this one will end up on both). Of course this is just me and I am not profiling over 35 million videos for my statistics.

0.05% is directed from Email/IM

This I find staggering to be so low. One of the easiest and most cost effective ways to get people to share your videos is through email marketing – particularly to an existing base of people who have opted in to receive your email newsletter. In a recent post about integrating video into your email marketing campaign I found that there was a significant 175% increase in click-throughs when video content was included in an email campaign. It sounds like a lot of people are missing the boat on this possible distribution channel.

Blogs sourcing most of the 80.88% of all referred traffic in this sample.

To those trying to make a video go viral, this should be telling you to reach out to relevant bloggers who could help you tremendously with the push for video views.

0.63% derives from video search engines

This is bad news to the ever increasing number of online video search sites that seem to keep popping up promising to help your video go viral or supposedly helping you search. With less than a 1% take, that doesn’t exactly fill me with confidence. I’ve long held that most of these sites have very little value to the online video producer – this study just proves my theory.

So the real take-a-way here…

…is engaging bloggers to work with you by sharing the video with them. If nearly 81% of video traffic is coming from blogs it only makes sense to try and engage relevant bloggers to share your video. The other real key that isn’t really discussed is to make sure you optimize a video’s meta-data to ensure it can easily be found by those who are searching.

 

 

5 Question Interview: Ken George of WBUR

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kengeorgeKen George, new media production manager for Boston-based public radio station WBUR, 90.9 F.M., (one of the largest NPR-affiliated stations in the country) was bitten by the social media bug early last year.

Prior to 90.9, Ken was production editor for Masslive.com, a regional web portal based in Western Massachusetts.

After reading Ken’s blog, a chronicle of 90.9’s “web 2.0” initiatives, and following his “Tweets,” I got a chance to finally meet him at the station’s first “Tweet-Up” held in July 2008. Since then Ken has taken to organizing and hosting these events on an almost monthly basis.

WBUR is embarking on some really cool experimentation in the social media space, demonstrating a level of engagement and transparency pretty unusual for a major market broadcaster. As Ken is the mover and shaker behind this, I asked him to share his perspectives on what he is trying to accomplish for the station.

Without further ado, here is our conversation:

Eric Guerin: What prompted WBUR to get involved with social media and what websites/applications are you active on?

Ken George: We had been marginally tooling around with various social media sites like Flickr, YouTube for a number of years now. While great channels to port our new media content into, we never used those spaces to “converse” with users or listeners.

My eureka moment is a direct result of my attending one of the social media breakfasts last May. What I heard blew my mind. I left with a steely resolve to engage far more transparently and consistently with listeners via social media tools.

Twitter proved instrumental to this end. Why? I think the way it enabled almost real-time conversations. The more I Tweeted, the more followers I accrued and the more I would Tweet. A real self-reinforcing positive feedback loop.

EG: According to the most recent statistics I heard for public radio, the average age of an NPR listener is 47 and continues to trend older year after year. How does this age demographic of WBUR listeners, affect your approach to social media engagement?

KG: You’ve identified a huge problem with that question. For the most part, the “traditional listeners” are not the ones responding to our social media outreach. And frankly, I am unconvinced there is much I can do to reach those listeners via social media.

I see my efforts as helping the station to reach new markets and position itself for the future characterized by a limitless supply of on-demand content. Community will be the one trump card we can play to distinguish us from all the other guys.

EG: What are the biggest challenges WBUR faces as the way people receive news is changing?

KG: The unparalleled access to information, content, news on demand presents a huge challenge. Public radio operates best in an environment of information scarcity. When locked in your car you choices are 90.9, some innovative college programming or boatloads of crap.

This completely breaks down on the Web, where you can get all kinds of radio programs and other compelling content ad infinitium.

And of course there is the issue of money, specifically the amount advertisers (underwriters in public broadcaster parlance) will fork over to get mentioned over the airwaves. That revenue helps cover the considerable costs associated with radio production. On the web, those analog advertising dollars become digital pennies.

EG: You’ve started a monthly “TweetUp” at your studios where anyone can show up, get a tour and engage in a round table discussion about many different topics. How did you come up with the idea for this and what was the driving force behind it?

KG: The “Tweet-Ups” where a natural outgrowth of our social media experimentation. NPR resident social media evangelist (oh that term again!) It was from Andy Carvin, who among other things is tasked with getting National Public Radio affiliated stations onto the social media bandwagon, that I learned about “Tweet-Ups.”

So I thought “What the hay, let’s give it a go and see what happens.” I was dubious folks would attend, and was very gratified to see my misgivings were unwarranted. And these events have been of tremendous value to the station. The core attendees (yourself included of course) serve as a brain trust of sorts that have in no small way helped guide 90.9’s digital media efforts.

I think my strong feelings about empowering the “public” in “public radio” is what has made me a fanatic about hosting these events monthly. You folks have supported us through thick and thin. It is only fair play that you be invited in to tell us what you think (even if at times it is not necessary something we want to hear). I think that is incredibly empowering for listeners.

Speaking of events, the next WBUR Social Media Meet-Up is February 5th at 7pm and at the end of February we are hosting an “Eat Up at WBUR” – making a concerted effort to reach out to local food bloggers as part of the station’s new community-based “Public Radio Kitchen.”

EG: Being public radio you need to do fund-raising to stay on the air, how have you used your social media connections to help promote and donate to your pledge drive?

KG: We are in the embryonic phrase of tying social media to pledging. The end of the year fund drive last December represented the first time we tried using social media to solicit pledges. I would remind folks (mostly via Twitter) that the fund drive was on and direct them to a specific landing page so we can quantify the results. Our overall take via social media was small, but then the initiative was rather last minute and haphazard.

The plan is that the next time we try this we are a little more organized and consistent. We may (“may” being the operative word) even deploy “micro-pledging” applications across the social media space.

EG: Thanks for taking the time Ken!

How Much of a Typical Video Online Is Actually Watched?

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One of the frustrating things about online video view counting is YouTube and most other video sites count a “view” regardless of how much of a video is actually watched. So that got the research staff at TubeMogul thinking…how much are people actually watching before they click away?

The results from their study are pretty amazing: most online video viewers watch mere seconds, rather than minutes, of a video. All going back to the point I try to stress with every one of my clients that brevity is key. Click the image to see an enlarged graph of TubeMogul’s study findings.

For the full report from TubeMogul Industry Analysis, continue reading here. Here are some of the highlighted statistics that I found truly interesting:

Most videos steadily lose viewers once “play” is clicked, with an average 10.39% of viewers clicking away after ten seconds and 53.56% leaving after one minute.

I found this one surprising but not a complete shock. Most of our online marketing videos fall under 1½ minutes. The fact that over half of all viewers they sampled drop off after the first minute is interesting. How many were because the videos were incorrectly described or tagged and how many were just “casual browsers” checking out videos randomly. Properly titling, describing and tagging your video is one of the most important steps to getting found by the right people who are more likely part of that 46.44%. If they were looking for your content, they are far more likely to watch it to completion…as long as you keep it short.

A three minute video that has a post-roll ad in the final seconds, for example, will only be viewed by 16.62% of the initial audience, on average.Another takeaway is that overlay ads should be displayed as early as possible in a video, preferably within the first few seconds. On YouTube, where most overlay ads appear at about 10 seconds in, 10.39% of a video’s initial viewers are not likely seeing the ad.

Alright I’m going to go off on a little tangent here – I am not a fan of pre-roll or post-roll ads on video content. Personally I just think it is too much of an interruption to the viewer who clicked on a particular video to watch…NOT the advertisement tacked onto the video. I wonder how many viewers are clicking away because they are annoyed by the interruption of overlay ads on the video they are trying to watch? Especially if it is interfering with the content. Social networking on video sharing sites is all about inbound marketing or letting the community find the resources they are looking for by properly tagging videos with the keywords they will be searching for. Overlay ads to me are more of the old school of outbound marketing like television commercials, print ads, etc. a shotgun approach to hit as many people as possible with their sales pitch without regard as to whether it is hitting their target market or not. Sorry…my diatribe is over now. Anyway if you are going to engage on overlay advertising, this is a staggering reason why you shouldn’t even consider post-roll overlay advertising.

TubeMogul has once again impressed me with their industry leading research and produced some impressive results from their study. What about your own viewing habits? How long do you typically watch a video? How do you feel about overlay ads?

Using Videos in your Email Marketing Campaign

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As many of my blog readers and customers know, I am a big proponent of utilizing email marketing as part of your mix to distribute an online video created to market or promote your business, service or product. It is a great tool to touch base with your existing customer base and if that video is done creatively, is a simple and easy way for your customers to pass your message on to friends.

I have been giving regular seminars with Zak Barron of Constant Contact about how best to integrate email marketing with online video. One of the statistics I use is one I got from the Email Standards Project where their research showed that a “…screen grab was clicked on more than 5 times as often as the text link.” Of course being a video production company I latched onto these stats and used them to my benefit. I’ve seen these statistics used as part of Email Marketing Reports and also in a discussion I had on the Constant Contact User Community Forum…but then I wondered…what would my own research find? We already knew from our own monthly newsletters that we were getting really high click-throughs compared to industry standards and most were going to the new video that we sent out every month. Most of those click-throughs on our e-newsletters were also clicking on the screen-grab JPEG image (see “screen-grab sample image above) which “looks” like it will play but actually links to the video on our website rather than using the text link to that same video. Here were our cumulative statistics for our open rate and for our click through rates for 12 e-newsletters which amounts to several thousand emails going out:

Cumulative Open Rate: 48%

Cumulative Click Through Rate: 44%

So then on two occasions we decided NOT to include a video with a screen-grab link in our e-newsletter and instead sent out informative articles, upcoming events or blog posts. All good content…just no video. Our statistics for these two e-newsletters were:

Cumulative Open Rate: 47%

Cumulative Click Through Rate: 16%

It wasn’t a full 5x as often but including video in our campaigns was a very significant 175% increase in click-throughs when video content was included. Another really interesting fact is that our open rate remained virtually the same which basically means there is a 64% decrease in the number of click-throughs on our e-newsletter when we do not include video.

I hope you find these statistics as interesting and useful as I did. Now my head hurts from all that math so I’m going to have to get back to doing something creative but with these statistics in mind…have you included video in your email marketing campaign? What have your results been? Please share your own results by commenting below or pinging this blog post.