According to a study by AOL Platforms, YouTube is more effective than any other social platform at both introducing products to new customers and converting sales. The report found that YouTube has the strongest influence on the first and last stages of the buying cycle.
Incase you are wondering, here are the different stages of the purchase funnel:
First – This is the consumer’s introduction to the product. This is how they find out about it. TV is usually credited as the first stage, because of its national reach.
Middle – There are a lot of touch points in the middle stage: Non-brand and brand searches, and re-targeting clicks are all considered middle stage interactions. In the middle stage, brands are basically trying to remind the consumer that they are (or at least were at some point) interested in the brand‘s product. These mid funnel reminders could be banner ads that appear on webpages the consumer typically visits.
The middle stage of the customer path is rarely credited with conversion, because it is hard to prove. The first stage has a sort of “love at first sight” relationship, which is more easily attributable. There is even an “only” stage (orange on the graph) where a consumer is introduced to the product and immediately converts to a purchase. This is straight-up impulse buying, and easy to identify.
Last – Typically, this is the last channel the consumer is exposed to before purchasing. Search advertising is a common “last stage” channel, because the consumer can search Google for the product and be quickly given avenues for purchase, such as the brand’s website, Amazon, or their pick of online vendors.
What does all of this mean? It is important to analyze where in the purchase funnel your resources are. AOL gives the example, “…if a brand’s priority is acquiring new customers, it should probably invest more heavily in channels that are traditionally stronger first touch points, rather than middle or only touch points, as it will want to generate product awareness first before trying more direct response ad channels lower down the sales funnel. This is why you often see large, new product marketing campaigns kick off in the U.S. right before or during the Super Bowl.
The customer journey from product introduction to conversion can be long or short, and finding the right combination of middle touchpoints plays an important role in driving sales. In other words, it’s important to optimize campaigns across all touchpoints in order to maximize the ROI.”
At Transformation Marketing in Lincoln, NE, we are the all-in-one advertising agency. Whether you want to produce a video featuring your new product or service, or you want to increase your social media exposure… this is what our team does all day, everyday.