benefit of video marketing

The top benefits of video marketing with apps for CPG brands

The benefits of video marketing for CPG brands may be overlooked as this is a category of brands where the products have relatively low-price points and high competition. However, video marketing isn’t just about the product. It’s also a way to build an initial connection, increase a consumer’s recognition of a product, grow brand affinity, and increase sales.

Video marketing impacts consumers in a way that text- and photo-based interactions cannot. Video is better for gaining the consumer’s attention and turning that attention into brand affinity. Through the trust built by video marketing, brands can create ongoing relationships that ultimately lead to sales.

Benefit #1: Building an Initial Connection

Consumers are leaning toward video as one of their most preferred mediums. YouTube reported that consumers around the world watch over 1 billion hours of video a day. Brands that react to that demand with video content will be better prepared to meet consumers’ increased demand for this type of content.

In addition, video is much more likely to gain the attention of consumers during their initial viewing. In one study, video was shown to increase click through rates by 300%. As video continues to grow as an effective medium for grabbing consumer attention, so does the potential to increase brand awareness through video campaigns.

Benefit #2: Increasing Message Retention

Oftentimes, building brand awareness isn’t quite enough, as brands want more than for consumers to be aware they exist. Brands want to be top of mind when consumers are looking for a product. Someone who views a video will retain about 95% of the message. Meanwhile someone who reads content will only remember about 10%. Retention rates are high for video for a number of reasons, including:

  • Multi-media approach: The combination of images and audio creates a fuller sensory experience to the consumers, meaning they will be more likely to remember the message.
  • Multiple viewing options: With text, the consumer must actively choose to read, so they’re unable to do anything else. With video, the consumer can multi-task, listening to the video message while doing other things.
  • Emotional connection: Video is much better for setting an emotional tone than text. With video, your brand has the ability to set the tone. With text, the consumer’s state of mind can change the way they view the message.

the benefit of video marketingVideo content allows brands to create the retention needed to build brand affinity with consumers. When a consumer recognizes your brand, it creates a level of implied trust. This positive relationship between the consumer and the brand will eventually lead to sales.  

Benefit #3: Creating Brand Affinity

Video, especially mobile video, is a way to build upon a connection with a consumer in a way that leads to sales. This is something we can see as an example through Red Bull’s diverse listing of apps. The brand uses apps that offer sports-themed videos such as snowboarding, surfing, and skydiving, as well as up-to-the-minute updates.

This is a strategy that takes the approach of offering video as a service to the consumer rather than as an advertisement. In Red Bull’s case, video marketing is used to connect with a community of busy consumers—the kind of busy consumers who may be in the market for a high octane energy drink.

Through their video apps, Red Bull built a community for its brand and expanded its services. These consumers don’t just view Red Bull as a product, but instead as a brand they trust. As a result, it has seen brand affinity lead to sales.  

Boosting the Benefit of Video Marketing With Shopping Apps

These days, video is best delivered within an app, as consumers are spending an increasing amount of time on their mobile phones. In addition, mobile video allows brands to combine the impact of video with the conversion potential of incentivized marketing. Shopping apps, like Shopkick’s app, frequently combine these two methods to gain the most sales potential from a campaign.

Rewarded videos, where consumers receive points (or in Shopkick’s case, kicks) for completing videos have high conversion potential because they boost the existing impact from a video with the offer of a reward.

Video marketing within apps benefits CPG brands because it helps them get discovered and establishes a relationship with consumers while improving conversion potential.

Leveraging rewarded video through a shopping app can be a good way to speed the benefit of video marketing as it bypasses the initial discovery and retention phases of brand awareness, allowing a brand to jump straight to brand affinity, where the potential for sales is highest. The brand is not faced with the initial challenge of getting a video discovered on often overcrowded video marketing platforms because the consumer is actually seeking out the video on an app for its reward.

Video marketing within apps benefits CPG brands because it helps them get discovered and establishes a relationship with consumers while improving conversion potential. Shopping apps can help brands harness the powerful conversion potential of video marketing faster, allowing them to gain the edge on their competition.

Shopkick provides a shopping app that our partners can use to deliver rewarded video experiences to consumers. For more information, contact us.

Image courtesy AntonioGuillem




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Dima Volovik

EVP of Product and Engineering

Dima Volovik is the EVP of Product and Engineering at Trax Retail — Shopkick.

Dima Volovik is the accomplished product and engineering leader who led teams to deliver innovative and commercially successful e-commerce products, marketplaces, and enterprise solutions for Amazon, Comcast, Fandango, and Universal Music. Before joining Trax, Dima was the Director at Amazon, where he led product development and Engineering for Amazon Appstore and Amazon Prime Video, CTO at Fandango, and Paciolan, head of technology at Golf Channel/Golf Now, and Global VP of Direct to Consumer Technology at Universal Music Group. Dima’s expertise includes developing consumer products, marketplaces, and enterprise solutions.

Dima grew up in Baku, Azerbaijan, where he received his MS in Electrical Engineering from Azerbaijan Oil Academy, and he currently resides in Los Angeles, California, with his family.