Digital video is continuing its rise to prominence and is becoming a critical tool for advertisers as a result. For most firms, there’s simply no denying that digital video needs to play some role in your business and marketing strategies. But utilizing digital video well is far harder than most realize. It requires intimate knowledge of your audience, competition, and wider industry.
Obtaining that knowledge requires market research.
Why is market research important?
Market research and the data it gives you are fundamental for developing a business strategy. Whether you’re creating a new advertising strategy or launching an entirely new business, without effective market research, you’re likely to be dangerously unaware of potential problems. This could be anything from realizing your target market isn’t right to not knowing about a key competitor.
What is market research?
A lot falls under the category of market research. It could be hiring market research experts to conduct focus groups to simply doing some of your own online research using existing data tools. In any case, it’s about learning more about every aspect of your target market, for example: who your competitors are, who your potential customers are, what forces are affecting the market, how is it changing, etc.
Primary and secondary market research
One helpful way to think about gathering market research data is by thinking about whether you want to focus on primary or secondary research (or some of both). In case you forgot learning about this in history class, primary research comes from the actual source, IE interviewing real people. Secondary research is writing others have done, so public data, reports, etc.
Generally, primary research is harder to do because you’ve got to collect the data yourself. But that also makes it very valuable when done right. So, consider your resources and how valuable primary vs secondary research will be for you.
Looking for customised reports about digital video? Then you are at the right place. Send in your requirements to email@example.com
How to gather market data in the digital video industry
There are plenty of potential traps when it comes to gathering market research data on digital video. For example, simply looking at which types of videos perform well is more likely to lead you to incorrect conclusions that could harm your strategies. To get quality data, you need to be smart about how you gather and analyze it.
Market size data
Determining the relevant market size for digital video is a two step process. It begins with figuring out the general size and demographics of your target market. So, for example, if you’re targeting 18-34 year old women in the US, that’s about 38.1 million people.
Then, you need to consider how many of the people in that market interact with relevant digital video platforms. Looking at YouTube, about 77% of people in that age range use their platform, giving you a potential market size of around 29 million. You’ll want to get far more specific and narrow than this example, but it shows you the general process of determining your market size for digital video.
Market dynamics and trend data
Once you’ve got a sense of your market, the next question is ‘what’s happening in it?’ Is there a new disruptive player making a splash? Are any demographic groups growing or shrinking? You may have a general sense of these changes in your market, but proper market research requires data. While interviewing customers is feasible even for smaller companies, obtaining primary data on broader market dynamics might be trickier.
Your best bet here is likely to rely on professional publications, research reports, or market research firms specializing in your area. However, if possible, you should try and confirm or build upon this data yourself using your own data and analytics. For example, if you find a market trend where customers are shifting towards a specific product category, check whether your own data shows the same trend. This is a good chance to discover critical details, exceptions, and opportunities.
If possible and relevant, you’ll also want to gather more granular customer data. Depending on your resources and whether you’re a B2B or B2C business, this could mean building individual profiles of customers or creating more general user personas and gathering data to confirm them. Creating landing pages and observing how people interact with them is one relatively easy way to test hypotheses and gather quality customer data. For videos, use tools to track how customers interact with them.
Other quantitative and qualitative data
Ultimately, there’s no single perfect way to do market research, which is why using multiple data sources is so important. It helps you avoid potential biases and misleading conclusions. If you’re doubting yourself, try reaching out to specialists or crowdsourcing ideas on platforms like LinkedIn.
The content marketing team at Vidooly publishes articles and blogs on current and relevant online video industry related news.