7 In 10 SMB’s Are Achieving A Positive ROI With Video Marketing

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Although small businesses aren’t the earliest adopters of technology, they believe video will affect how they market in the coming years, particularly when it comes to social media and social advertising. And SMB owners are already seeing results with video marketing: 7 in 10 SMB owners, who have been using video marketing on social networks, are achieving a positive ROI, according to a recent survey, among 1,000 small business owners (SMB), by cloud-based video creation service Animoto.

Animoto found that more than half (55%) of SMB owners created or commissioned a marketing video in the past 12 months. Of those, 74.1% said their video marketing efforts directly impacted their businesses. Not surprising, nearly two-thirds (62.6%) of SMB owners, who have been using video marketing, are planning to increase their spend on video in the next 12 months. (Full infographic at the end of the article)


Key Reasons For Using Video As A Marketing Tool

More than half (54.7%) of SMB owners participating in the Animoto survey revealed that they are using video to stay relevant and believe it has become a “must-have” for effective marketing. 40.7% of SMB owners believed that the use of video makes them stand out more on social media. More specifically, slightly more than two-thirds (69.4%) of SMB owners use video marketing to find new customers and more than half (55.1%) indicated they use video to raise awareness for their brands. 5 in 10 SMB owners (52.9%) aimed to increase sales with video marketing. 

SMB Video Production Resources

Due to the growing understanding of the effectiveness of video marketing more SMB owners are producing video than ever before. Animato asked SMB owners whether they perform video production in-house or outsource to a third party. 11.2 % said they outsource video capture, 8.2% video editing and 6.2% outsource photo shooting and editing. One can suspect that budget constraints were the primarily reasons why so few SMB owners were open to paying an expert to handle video marketing for their firms. 

SMB Video Production Tools

Today, smartphones with HD cameras are widely available and relatively inexpensive and SMB owners are taking advantage of this tool for shooting photos and videos. It is therefore no surprise that the survey data points out that smartphones have become the most popular video capture tool for SMB’s, ahead of DSLR and point-and-shoot cameras. The Animoto survey data revealed that nearly two-thirds (63%) of video capture and half (50.7%) of video editing is performed on a smartphone. Today only 10.4% of SMB owners use stock photography and 5.2% use stock video. Over a quarter of SMB owners have turned to mobile editing tools as well.

SMB Video Distribution Platforms

Facebook is the primary social media platform for SMB owners to share and distribute video content. 40.3% of SMB owners indicated that over the last 12 months Facebook had been their social media platform of choice for sharing video content over the last 12 months. YouTube came in second with 18.5% of SMB owners rating it their preferred social media platform for video distribution.

Social Media Advertising Used By SMB Owners

As video advertising options across social media platforms continue to grow SMB owners are increasingly focusing on social venues such as Facebook, YouTube and Instagram. The Animoto survey data revealed that 39% of SMB owners spent money to advertise or boost content on social media platforms. When Animoto asked SMB owners where they’ve paid to advertise videos in the last 12 months, 63% cited Facbook, 33.7% YouTube, 14.3% Instagram, 6.2% Pinterest and 9.2% LinkedIn. 

Type Of Videos SMB’s Are Promoting On Social Media Networks

Among SMB owners who are planning to spend money on social media video advertising, product videos were the most popular video type. More than two-thirds (64.2%) of SMB owners said they paid to promote Product Videos on social networks in the last 12 months. 44.3% said they paid for About us/Team videos and 44.8% paid for Company Overview videos.

YouTube is the social media platform that is projected to see the most growth in paid video promotion by SMB owners. 33.7% of SMB owners paid to promote video on YouTube in the last 12 months; 45.3% of those that plan to spend money to advertise on social media in the next 12 months plan to spend on YouTube. 


In the early days of online video marketing, video views were held in high regard. Today, according to the Animoto survey data, only 14.1% of SMB owners look at video views when determining the success of social media video campaigns. The top-3 success metrics currently used by SMB owners to determine campaign success are the number of new customers they acquired (39.8%), social engagement (17.3%) and website traffic (13.2%).

Barriers To SMB Video Marketing Success

17.6% of SMB owners participating in the Animoto survey, who aren’t using video marketing, revealed they had not used the marketing tactic because it was too time consuming and too expensive to implement. However, SMB owners do understand the importance of video sharing on social networks, which is why two-thirds are planning to invest more in video marketing, and new marketing hires skilled in video, in the next 12 months.

Social video marketing and advertising