Business

5 Reasons Why Every Startup Needs an Explainer Video

Claude Harrington 09.20.2016

In the life of a business, there’s no time more critical than when you first get started. There’s also no time when it’s more important to explain what you do in a clear and compelling manner. So to accomplish the latter and help with the former, explainer videos can be an invaluable asset to a startup.

In fact, in this day and age, it’s a necessity. Here’s why…

IR- Oh!

1. Got to Give the People What They Want

Whether you’re courting a customer, an investor or a member of the press, it can be hard to get an audience. So when you finally manage to get someone’s attention, you need to make it count. And part of making it count entails speaking to them in the manner they most prefer: video.

How much do audiences prefer video over text? According to Forbes, 59% of senior executives prefer to watch video instead of reading text. That percentage is even higher when expanded to a general audience: “Where both text and video are available on the same web page,” explains Wyzowl, “69% of users would prefer to watch video to learn about a product or service.”

Figures like those reenforce what you probably already anecdotally know to be true: the best way to get someone’s attention these days is with video. But even more valuable than getting someone’s attention is keeping their attention. And that’s where an explainer video becomes even more integral for your startup.

2. Avoid being a Statistic (by using statistics!)

As a startup, here’s what you’re up against:

  • 9 out of 10 startups fail (via Fortune)

And here’s another factor that steeps the incline of what’s ahead:

  • 55% of visitors spend less than 15 seconds on a webpage (via Chartbeat)

To recap: not only are the odds stacked against startups, but (digitally-speaking) the amount of time you have to try and improve those odds is minimal.

So…how can you avoid being a statistic? By leveraging some of these stats to your advantage:

  • Visitors who view videos stay on web sites an average of 2 minutes longer (via ComScore)
  • Visitors who view videos are also 64% more likely to make a purchase (via ComScore)
  • Landing pages with video typically have a conversion rate above 80% (via EyeView Digital)

In addition to all that, startups without a video also risk a perceptual disadvantage. According to Animoto, “1 in 4 consumers actually lose interest in a company if it doesn’t have video.”

3. Know Your Customer Better (via an Explainer Video)

When we think about explainer videos, we think about their ability to help you convey information. But here’s the thing: they can also provide you with information as well.

By using a few simple metrics, videos can provide you with all kinds of insights into the personality and mindset of your prospects. It can give you a level of transparency that you didn’t have before.

This is particularly valuable to a startup for two reasons:

  1. It is, of course, always important to know your customers. But at this early stage—when you’re still figuring out who your customers are and understanding the nature of their persona—it can help you steer the ship.
  2. As a startup, you are still figuring out who you are. Shoring up your identity. And video metrics can help by acting as something like your own personal focus group.

Speaking of identity…

4. Controlling the Who

In a crowded landscape with many similar-looking products, who you are matters almost as much as what you are selling.

The difficulty with adjusting to this new dichotomy is that while the what is tangible and easy to compare, the who is a bit more abstract. It’s a combination of factors like these. 

  • Mission
  • Values
  • Tone
  • Differentiator/s
  • Corporate Narrative

Customers care greatly about these things. As do potential employees. Especially millennials. For example, a recent LinkedIn survey revealed that 74% of millennials seeking work want to work for a company where they feel like their work matters. That said, it’s a real challenge to effectively convey these things. Especially when the clock is tick-tick-ticking

So…what’s the solution?

Well, given the headline of this post, you likely already know the answer. An explainer video! But how come? What unique properties does an explainer video offer than can’t be accomplished by text, image or even in person?

The answer is twofold: story and perspective.  An explainer video presents the opportunity to use narrative and viewpoint/emphasis to impart details about the who while actually describing the what. It’s a way to present the largest scope possible in the shortest amount of time. And, if done right, a way to do so in a compelling manner.

5. It Works

Countless startups have leveraged an explainer video to create success.

Below are just a few that we’ve written about on the blog before:

What We Can Learn From Dropbox’s Famous Explainer Video

Billion Dollar Explainer Video?

Behind The Scenes: AutoMD (Whiteboard Animation)

Questions? Comments? Contact IdeaBlog@idearocketanimation.com

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