5 Reasons Why Startups Need Explainer Video
Your startup faces three key challenges if you want to make it out of the garage and onto the stock exchange:
- Let people know you exist
- Convince them they should care
- Differentiate yourself from others in the industry
A startup explainer video can do all of these things and more. By presenting your startup in an accessible, engaging video, you quickly establish who you are and what you can do for the customer. Here are the top five reasons why every startup needs an explainer video.
1. Video captures attention
Whether you’re courting a customer, an investor or a member of the press, it can be hard to get and keep their attention. Fortunately, video is a natural attention grabber. The combination of sound, color and movement is harder to ignore than a still image or a block of text.
While you can write a beautiful blog post about your revolutionary new product, the numbers show that a 2-minute startup explainer video is likely to garner more engagement. According to Forbes, 59% of senior executives prefer to watch video instead of reading text. The general public is even more excited about video. Wyzowl found that when text and video were both available, 69% of users prefer to watch the video. And explainer video is at the top of the list of video types they want to see.
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.”
Finally, video is more likely to be shared. On popular social media sites like Facebook, video shares are on the rise. That’s good news for your startup because it means that if you can capture the attention of one person with video, they’re likely to spread the word about your new business.
2. Video closes the deal
Including a startup explainer video on your website can help keep visitors engaged. While a visitor will spend an average of 1.5 minutes on a page without video, they’ll stay twice as long on pages with video. That means that adding an explainer video to your landing page can improve your SEO ranking and share more of your message with someone who might otherwise have clicked away.
That extra minute and a half is valuable. Once visitors have watched your video, they’re much more likely to buy your product or service. According to a Vidyard survey, 70% of marketers say that video provides better conversion rates than other content. Google confirms that what these marketers believe is true in the marketplace. A survey of YouTube’s skippable video ads found that 35% of campaigns saw a lift in purchase intent after viewers were exposed to a single ad, even if they didn’t watch the whole thing. Among people who watched at least 30 seconds of the ad, purchase intent increased in 61% of campaigns.
In short, creating an explainer video should be among your top priorities if your goals are to get more people interested in your startup or make more sales.
3. Explainer video helps you know your customer better
Most of the time, we think about explainer video in terms of how they help you convey information. Most people don’t think deeply about how explainer videos can help startups collect information, but by tracking video metrics, you can learn a lot about the people who are interested in your startup.
Social media sites like Facebook and YouTube, and video hosting sites like Wistia, share user data to can help you get to know your customers and investors better. This is particularly valuable to a startup for two reasons:
- 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 make more content of interest to them.
- As a startup, you are still figuring out who you are. Video metrics can help you test ideas and know if you’re heading in the right direction.
4. Explainer video tells your story
In a crowded landscape with many similar-looking products, who you are matters almost as much as what you are selling. While the what may be tangible and easy to compare, the who is more abstract. An explainer video can help your startup convey less tangible ideas like:
- Corporate Narrative
Customers care about these things. Specifically, they care about whether your mission, values and story fits with their views of the world. According to a survey by Cone Communications, seven out of every 10 Americans believe companies have social and ethical responsibilities. These consumers make at least some of their purchasing decisions based on how well your message aligns with their beliefs.
An explainer video can tell the story of your startup and convey your values. It’s perhaps the most effective way to engage customers, investors and potential employees on an emotional level. Because you can convey multiple levels of meaning in a single frame, video gives the best bang for your buck by presenting story and product simultaneously.
5. Startup explainer video works
Countless startups have leveraged explainer videos to rocket them to success. Well-crafted explainer videos have launched their startups out of obscurity and into IPO territory. Here are a few examples to inspire your own startup explainer video.
If your startup wants to capture attention, boost awareness and start telling its story to the world, Idea Rocket is here to help. We craft engaging live-action and animated videos for businesses at all stages of development.