17 Feb The evolution of video production companies and where it’s heading
Video production companies have seen a huge evolution over the last 20 years. When Studio B Films first established itself as a video production company in the San Francisco Bay Area, there were a lot fewer creative agencies, and almost all the work we did was obtained through large agencies subcontracting their video production work to smaller video production companies like ours. Since then, a handful of changes have altered this equation, here are just a few:
The internet comes of age.
As the internet became robust enough to stream video in the early 2000s, suddenly, any company could promote themselves with video direct from their website. Up until that time, opportunities for companies to show off their corporate marketing videos were limited to trade shows, conferences, and sales meetings. Suddenly every company had access to their own distribution systems through their websites. You would be crazy not to take advantage of that marketing goldmine, so naturally, the demand for video production services went way up.
Video equipment prices fall
There has also been a revolution in video production and post-production equipment. Over the years, video equipment has gotten better, smaller and, most importantly, a lot cheaper. Over time, a really professional camera package and editing equipment came down in price, so someone could start a video production company for, say, $50,000 rather than a half-million dollars. A combination of this new demand and accessibility suddenly put the technology in the hands of filmmakers who previously couldn’t afford to start a video production company. This marked the beginning of the democratization of video, now the same guys could offer up affordable video production services
Marketers shift away from big agencies
There are lots of times when hiring a large advertising agency to produce your video productions makes sense. For example, if that video is part of a larger campaign involving focus groups, television commercials, website design, and print, it’s often helpful to work with an advertising agency that can coordinate those efforts and give all your marketing a unified look, feel and messaging.
Today, however, many companies coordinate their marketing in-house, and it just makes sense that they turn to smaller video production companies and creative agencies that focus exclusively on producing videos. Niche or boutique production companies are often run by filmmakers who have dedicated their careers to video production as a way to creatively tell memorable marketing video stories that promote brands and products. These small agencies generally bear less overhead and are a lot more affordable than a large advertising agency. Again, there are times when a comprehensive ad agency makes sense, but often it’s usually wiser to hire a creative agency that focuses exclusively on video production services.
Hybrid video production company/creative agencies emerge
Back when advertising agencies would subcontract to video production companies, they would do the heavy lifting in terms of developing creative treatments and writing scripts. Today, for video production companies to be successful, they need to be both a creative agency that creates great content and a filmmaker with the technical and creative chops to produce well-shot and edited video stories. What has emerged is the creative agency/video production company hybrid that offered focused video production services.
Current Video Marketing Trends and future of video production
So, where is video production heading? Below are some of the video production trends we imagine in the years to come.
All research points to increasing demand for video production. According to new research by Forbes, 78% of marketers believe that video has helped them attract new customers and that including a video on a landing page can increase conversions by 80%. It’s no surprise that all predictions agree that the demand for video content will only continue to grow in the next 10 years.
Here are some Statistics:
- By 2022, online videos will make up more than 82% of all consumer internet traffic — 15 times higher than it was in 2017. (Cisco)
- 81% of businesses use video as a marketing tool — up from 63% over the last year. (Hubspot)
- Mobile video consumption rises by 100% every year. (Insivia)
- A Facebook executive predicted that the platform would consist entirely of video and no text by 2021. (Quartz)
- Users view more than 1 billion hours of video each day on YouTube. (YouTube)
- 59% of executives say they would rather watch a video than reading text. (Wordstream)
- 75% of all video plays are on mobile devices. (eMarketer)
- Viewers retain 95% of a message when they watch it in a video, compared to 10% when reading it in text. (Insivia)
- 72% of customers would rather learn about a product or service through video. (HubSpot)
- 92% of users watching video on mobile devices will share it with others. (Wordstream)
Studio B Films has seen a lot of changes over the years, and we suspect that the need for video production services is only going to grow from here. While video production gear is more accessible than ever, the need for well-crafted videos that connect with target audiences is also more important than ever if marketers expect their messages to rise above the noise. Let us know if Studio B Films can help you craft your next video to keep your business relevant to your customers. While we have seen a lot of changes in video production services in the last twenty years, at the heart of every effective video has remained the same, good storytelling.