How big is the U.S. online video ecosystem? How about $135 billion. That’s the number video editing application Magisto reveals in its report “Video’s Payday: The Modern Marketing Dilemma and the State of Business Video,” which came out today.
That figure includes funds spent on video capture, creation, hosting, distribution, analytics, and staffing. It’s the whole enchilada.
The growth of online video has been nothing short of “meteoric,” the report says. In 2017, U.S. businesses will spend an average of $20,000 in the area.
By far the bulk of the spending comes from smaller companies—those with under 100 employees. These companies will collectively spend $122 billion this year. Companies with between 100 and 499 employees will spend $9.1 billion; those with between 500 and 1,000 employees will spend $1.6 billion; and those with over 1,000 employees will spend $2.2 billion.
As a point of reference, the report points out that advertisers will spend $71 billion on TV commercials this year and $83 billion on digital advertising.
To show how quickly online video marketing is growing, the report says that 84 percent of marketers will create more business videos in 2017 than they did the previous year. Additionally, 60 percent of businesses spend a quarter or more of their marketing budgets on video.
“Companies are spending billions to try and find effective and genuine ways to reach customers amid a new set of rules defining brand engagement,” says Oren Boiman, CEO of Magisto. “Video is proving a primary choice because it fits across earned, owned, and paid media, and almost any place customers are consuming content. It is both authentic and familiar to them. As consumers seek to define or re-define their own relationship with brands, video lets marketers meet them on their own turf.”
These companies aren’t just creating one or two videos over the course of the year, either. The report finds that 56 percent of U.S. businesses create videos at least weekly, while 26 percent do so daily.
One interesting demographic note: The heads of the marketing departments are likely to be generation Xers (between 30 and 45), while the people they’re trying to reach are largely millennials.
Magisto got its numbers by surveying over 500 marketing decision-makers at U.S. companies of every size. For more results, download the full survey for free (no registration required).