Advertising against the tide: Impact of short-form videos on consumer engagement

by arslan_ahmed | March 1, 2024 5:36 pm

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By Steve Leslie

The pool and spa industry saw one of the biggest economic booms ever during the pandemic. People could not travel or leave the house, and money was cheap. Further, because of demand, the consumer was at the mercy of the business. This meant companies could be more selective with their customer choices, and marketing campaigns played a relatively minor role. Fast forward to the latter half of 2022 and the “gold rush” was subsiding. However, this does not have to be a bad thing. Despite any negative connotations, there is value in exploring the changing landscape, pinpointing competitive advantages, and emphasizing the necessity for adaptation within the pool and spa industry.

One of the biggest changes amongst homeowners over the past decade has been a shift away from answering the phone. Though pool and spa industry professionals may prefer the personal touch of a phone call, it is not the first choice amongst homeowners.

In 2017, the CRTC released a study indicating more than 30 per cent of Canada’s population had registered to Canada’s “Do Not Call” list, with more registering each day.¹ A news story from October 2021 furthers this behaviour. A hiker was lost on Colorado’s tallest mountain for more than 24 hours. Search and rescue teams were reaching out, trying to call him on his cell phone, but could not get an answer. He was eventually found, and when asked why he did not pick up, he said it was because he did not recognize the number.² Imagine being lost on a mountain, in survival mode, and still refusing to answer the phone for fear of spam. This is just one example that shows how much people hate unsolicited phone calls.

The intensity of people’s aversion to these phone calls may be found within the infamous trademark by author and sales trainer, Jeffery Gitomer. He stated, “People don’t want to be sold, but they love to buy.”³ This is why people have a hard time entering new vendor booths at trade shows, because of the fear of walking into a sales presentation. They would much rather check out a product online. In fact, nearly 60 per cent of all consumers do some online research before they consider even reaching out to a company.⁴ Navigating the online world might appear daunting, but it does not need to be. Much like building an inground pool, the landscape for marketing and communication may change, but the core principles remain the same. It all comes down to understanding the customer’s preferences.

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Attention is the new currency

According to a recent study by Wyzowl.com, 73 per cent of consumers prefer a short form video to educate themselves on new products and services.⁵ A large majority of studies point to the use of video being the best form of marketing across many industries. One can see this by simply looking at the social media platform trends over the past decade.

Every major platform, including text-based platforms such as X (formerly known as Twitter) have embraced the use of video for their users. The reason is because video captures the most attention, which keeps people engaged on the platform for longer. If a business can capture someone’s attention long enough, the viewer is more likely to buy. One of the best platforms to use for this reason is YouTube. According to a study posted by SproutSocial.com, people who spend time on a brand’s YouTube channel are twice as likely to make a purchase.⁶ In fact, Neville Medhora (owner of Kopy Group LLC) recently stated YouTube provides the best quality traffic to their website. Those who visit his website after watching a YouTube video, “have very high sign-up rates, and very, very high purchase intent.” He also goes on to say, “They take it more seriously and there’s more of a connection that comes from YouTube traffic.”⁷

During an interview between NFL Hall of Famer, Shannon Sharpe, and long-time entertainer, Steve Harvey, the two discussed a fascinating interaction Harvey had with Denzel Washington. Washington pointed out to Harvey the profound connection viewers have with TV stars, opposed to movie stars. The reason was because viewers invite TV stars into their homes more regularly, creating a bond similar to that of a relative.⁸ Now that most people have adopted different streaming services for entertainment purposes, including YouTube, this is where the competitive advantage can be found. A business could develop an “entertainmerce” approach (combining entertainment with e-commerce) by creating their own “TV show” on YouTube.

If video creates a bond with viewers, then a company can pre-build a connection with potential customers before the customer even steps foot in the store. One of the simplest methods for creating content is paying attention to the conversations customers are already having and the questions customers tend to ask. Producing videos that address these questions not only results in valuable content, but it also has the potential to significantly reduce the time businesses spend explaining details over the phone.

Before the pandemic, the author created several YouTube videos to help homeowners when selecting a liner. Most of those videos received at least 2,000 views, with one having more than 14,000 views (and counting).⁹ While these videos appeared amateurish, they grabbed significant attention. If just 20 per cent of the average views resulted in time saved from a two-minute phone call, the estimated time saved is roughly 13 hours (i.e. 400 views x two minute phone call = 800 minutes or 13.33 hours). In relation to the few hours invested in creating the videos, this translates to a remarkable 300 per cent return-on-time. Establishing a video resource library not only contributes to an improved customer experience but also provides an additional avenue for suppliers to establish a connection with new employees in advance.

Consider a scenario where a business brings on a new customer service employee unfamiliar with the industry. During the initial learning curve, this new employee will require guidance and support. This is where a video resource library would be perfect, as people retain 95 per cent of information in video format opposed to just 10 per cent of information from text.⁶ A supplier could create a YouTube channel, or video resource library on their website, to help aid in troubleshooting and answering various questions about their product. This gives the new employee (and veteran employees) a tool they can use to either learn from, or pass along to their customer to help answer questions. This approach presents an excellent opportunity to gain a competitive edge in areas where other businesses are currently not focusing.

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As the industry enters a more bearish cycle, and talks of a possible recession remain looming, it is important to focus on the positives. Forbes published an article back in 2019 titled “When A Recession Comes, Don’t Stop Advertising.”¹⁰ This article sums up nearly a century worth of data specific to bad economies (including the Great Depression). The study indicates those who pushed forward with advertising during these times saw the most success. A specific mention of Amazon during the 2008 recession was mentioned, who grew profits more than 28 per cent in 2009. Indeed, in the April 2010 issue of Pool & Spa Marketing, Dana Simpson from The Pool Shoppe, in Hamilton, said: “In talking with my peers at various shows, those of us who maintained or were able to increase sales in what was supposed to be a weak economy, did so because of an increase in advertising.”¹¹ The typical mindset during a recession is to pull back, which may equal a smaller advertising budget. This creates an opportunity for more aggressive businesses to expand into this market share, previously held by their competition, as demonstrated by brands in the aforementioned article.

The most interesting variable moving forward will be the role of social media during the next recession. A smaller advertising budget no longer means a decrease in marketing, but rather, a more tactical approach.

The power of video

Throughout this article, the focus has been on creating awareness around video and how valuable it can be for businesses, even those with a small marketing budget. The quality of the video does not have to be cinematic. In fact, the more raw and real, the better. People have become accustomed to the styles of traditional advertising, which is why many reach for their phones at the slight hint of an ad (or feel disdain whenever they cannot “skip” the ad on their phone). This is where the enormity of understanding social media comes into play.

The most powerful example of why businesses need to focus on leveraging social media videos can be found with the cranberry drink company, Ocean Spray. This company has been around for more than 90 years, and with nearly a century of ad campaigns, the single, most successful one came at the hands of an American potato farmer. This random guy shared a video of himself skateboarding down the road, listening to Fleetwood Mac, drinking a bottle of Ocean Spray cranberry juice. This video went viral, generating significant attention for the beverage company. Even Ocean Spray’s CEO took notice and various people recreated their own version of the video to help spread its popularity. Eventually, Ocean Spray rewarded the potato farmer with a new truck.¹² With millions of views, Ocean Spray saw a massive influx of sales as a result. This campaign incurred no cost, relied entirely on organic reach, and surpassed any advertisement the company had undertaken in its nearly century-long existence. Such is the impactful potential of video.

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Though Ocean Spray may be an extreme example (no one should rely on a video becoming viral), the idea that businesses no longer need to only leverage expensive media platforms is huge. Companies have all the tools necessary to capture their audience’s attention for free if they are willing to embrace video as a key component to their branding and marketing efforts. Video allows businesses to do something one time and see an infinite return-on-investment (ROI). This media also contributes to pre-building connections with people, without having to say a word. Further, videos helps to build credibility and establish expertise. With more and more industries adopting video as a core branding and marketing tool, having a video resource library will become as valuable as having a website. Countless studies show the influence video has in creating brand awareness, and building customer loyalty. For all these reasons and more, it is safe to say those who refuse to accept and embrace video may find themselves left behind in the coming years.

Notes

¹ Refer to the Government of Canada CRTC website, under “Taking Part” section at crtc.gc.ca/eng/DNCL/rpt170929.htm[5].

² See the article on Global News, “Lost, missing hiker didn’t answer rescuers calls because it was an unknown number” by Chris Jancelewicz, globalnews.ca/news/8328728/missing-hiker-unknown-number-no-answer[6].

³ Vist the Jeffrey Gitomer official website, “People Don’t Like To Be Sold But They Love To Buy” Trademark registered November 12, 2002, www.gitomer.com/people-dont-like-to-be-sold-but-they-love-to-buy[7].

⁴ See “Think with Google,” at www.thinkwithgoogle.com/marketing-strategies/search/global-online-shopping-research-statistics[8].

⁵ Visit the Wyzowl website, “10 Video
Marketing Statistics That Will Blow Your Mind” by Jemma Melvin, www.wyzowl.com/amazing-video-marketing-statistics[9].

⁶ Refer to the SproutSocial website, “40+ Social Media Video Marketing Statistics For 2023” by Tracey Witt, sproutsocial.com/insights/social-media-video-statistics[10].

⁷ See Neville Medhora’s post on LinkedIn,
www.linkedin.com/in/neville-medhora-654749/recent-activity/all[11].

⁸ Vist Club Shay Shay’s YouTube channel for
the video, “Denzel Washington Teaches Steve Harvey the Difference Between A TV Star and a Movie Star | Episode 78,” youtu.be/LNbYf6UaFbo?si=Uiyj5bhbhrW0B_Wc[12].

⁹ See the video, “2019 Butterfly Effect” on Highbury Pools’ YouTube channel, youtu.be/msI-Pw6eCNU?si=BVoziDA6rF2Diirh[13].

¹⁰ Read the article in Forbes Magazine, “When A Recession Comes, Don’t Stop Advertising” by Brad Adgate, www.forbes.com/sites/bradadgate/2019/09/05/[14]
when-a-recession-comes-dont-stop-advertising/?sh=6dbbc5604608.

¹¹ Refer to “State of the Industry” article by Jason Cramp in Pool & Spa Marketing, page 10, April 2010, www.poolspamarketing.com/publications/de/[15]
201004/index.html.

¹² Visit the Business Insider website for the article, “Ocean Spray gifted a truck to the man who went viral skateboarding while drinking cranberry juice and lip-syncing to Fleetwood Mac” by Isabella Jibillian, www.businessinsider.com/ocean-spray-ceo-tiktok-fleetwood-mac-cranberry-juice-dreams-truck-2020-10?op=1[16].

Author’s note: For a more detailed explanation of this article, including more specific examples relating to the pool and spa industry, please check out Episode 001 of The PromoMinds Podcast–Marketing Tips From Denzel Washington on YouTube, Spotify, or Apple Podcasts.

Author

Steve Leslie spent eight years in the pool and spa industry as a sales and marketing manager. Currently, he is the host of The PromoMinds Podcast on YouTube, Spotify, and Apple Podcasts, and specializes in helping to bridge the gap in communication between businesses and customers. He can be reached at info@PromoMindsMedia.com[17].

Source URL: https://www.poolspamarketing.com/trade/features/advertising-against-the-tide-impact-of-short-form-videos-on-consumer-engagement/

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