Statistics on the effectiveness of video:

Internet users are 144% more likely to purchase after seeing a product video than those who did not.


Video thumbnails shown in universal search results have a 41% higher click through rate than plain text and a site with a video is 53 times more likely to land on the first page of Google search results.


According to Internet Retailer 52% of consumers report having more confidence in making an online purchase after seeing a video.


YouTube is now the second most popular search engine in the world and is owned by Google, which is the most popular one. Google Panda update favors video content


According to a recent report published on eMarketer, the U.S. online video audience is expected to grow to 190 million people by 2012. That’s 88% of the entire online audience.


A report from comScore tells us that online retail videos are also working. From October 2007 to October 2008, the number of visitors to retail websites grew by 4%. However, the number of visitors to retail websites who watched videos on those sites grew by 40%.


So what are website owners doing about the changing online trends?


In an October 2008 survey of U.S. online retailers by Knowledge Marketing, 43.3% responded saying they planned to increase the amount of video or streaming media available on their websites, making it the number one advanced site feature that online retailers plan to add to their sites in 2009. Take a look at all responses in the chart below.


More than 300,000 people have watched Authentic Holiday Films on YouTube alone


More than 83% of travelers in the U.S. use the Internet to research or book travel, according to Prospectiv’s 2006 nationwide Travel Poll.


More than half of UK internet users book their holidays directly online new research conducted by Nielsen/NetRatings on behalf of marketing agency Harvest Digital and pan-European advertising network Adviva have revealed.


Podcasting News reported in September of 2007 that the online video audience in the U.S. is now 134 million (representing ¾ of all U.S. Internet users), with the average viewer watching 68 videos online a month, or more than two per day. reports in its Oct. 2, 2007 issue that a nationwide survey by Taylor Nelson Sofres (TNS) for Google and AOL found that more than ¾ of respondents said online video was as good as television for learning about advertisers, with more than 6 in 10 respondents saying they had taken some action after watching an online video ad.


The Hospitality Sales & Marketing Association International reported on Sept 4, 2007 that a recent Travel Industry Association/Ypartnership TravelHorizons-- study found that two-thirds of online adult leisure travelers consume online video and audio clips.


The Wall Street Journal reported on Aug. 14, 2007 that Cisco says consumer video will be responsible for a significant portion of the Internet-based traffic increases from 2006 to 2011, with video streaming and downloads increasing from 9% of all consumer Internet traffic last year to 30% in 2011.


Burst Media’s 2006 nationwide survey of online video viewers found that video reaches beyond the youngest equally as likely to view online content as the 18-24 demographics, with the 35-44 and 45-54 age groups age group


A recent article in the Wall Street Journal mentions that online video is starting to become one of the best performing formats for online marketing.


A study by the Kelsey Group found that “online video can combine some of the traditional strengths of video advertising (entertaining, informative, ability to elicit emotional response) with the direct response capabilities of the Internet.”


Other studies have also found that “Streaming video delivers nearly three times higher brand awareness and message association, and more than 100% higher purchase intent and online ad awareness than non-rich media ads.”


Video also performs extremely well with Search Engines (particularly YouTube videos since the site is owned by Google). Clever marketers are already aware of the power of video in SEO (Search Engine Optimisation) and it seems search engines are moving away from text search, making searches more interactive via video.


Unlike traditional television advertising, the results of an online video marketing campaign are also measurable. Statistics are available with regard to the age, sex, location, and the followup action of viewers (eg visiting your website and purchasing a product).