By Martin Hayward

As retail marketers move toward more interactive campaigns to sell products, they should be considering mobile video, a market that is rapidly growing. Here are the top five reasons why mobile video is one of the best options for retail marketing.

Mobile video is a burgeoning source of entertainment. Mobile video empowers you to engage potential customers wherever they are. By 2014, more than 500 million users will subscribe to a mobile video service. Mobile video viewing has grown a significant 52 percent in Q1 2009 from the previous year, up to 13.4 million Americans. Reports estimate that mobile video will be worth $11 billion by 2011 – and will become one of the fastest growing mobile entertainment sectors. If the retail market doesn’t explore mobile video campaigns then they will be ignoring a large audience and not attracting their customers in this new channel.

The technological barriers that were once making mobile videos impossible have been overcome. Previously, the mobile video experience was marred by buffering delays and uneven video playback. Today, video content creators can alleviate these concerns by encoding video in the correct bit rates and delivering them over the appropriate protocols for today’s smart phones. Done correctly, video encoding optimizes video performance across all ranges of mobile devices. Moreover, new content delivery technology makes it easy for retailers to leverage existing web content (demos, product placements, etc.) and deliver it directly to mobile devices.

Mobile videos haven’t been around long enough to be tainted. This gives retail marketers a fresh slate to work with. Retailers have a window of opportunity to get video content to their customers’ mobile handsets, before the market becomes overcrowded and the channel becomes noisy with product placements and commercial pitches.  

Unlike SMS and MMS messages that are often perceived by consumers as spam, mobile video is something users respond to as entertainment and interesting, making them more likely to be receptive  to hearing your message when delivered through this medium.

Information-hungry consumers want to view retail product demos, explore features, and gain a more in-depth understanding not only of products of interest, but of the people behind the retail brand. From basic “how to” instructions to in-depth knowledge sharing, video provides a platform to educate consumers about you and your brand. For example, a furniture store could produce videos of interior design tips and step-by-step instructions for furniture assembly. Savvy retail businesses are already integrating mobile video into brand campaigns and communications, inviting users to opt in to begin receiving mobile videos.

The iPhone and iPad have changed everything. Marketers are now living in the age of the iPhone and the iPad, devices that have made consumers open to — and hungry for — mobile video. These multimedia mobile devices have created the excitement needed to execute mobile campaigns. And with more than 50 million Apple iPhones and iPod touch devices sold (not to mention record breaking iPad numbers in the first month of availability), and 65 percent of all mobile browser use being performed on the iPhone, retailers would be foolhardy to pass up an opportunity to market to this huge audience.

In addition, many companies are encouraging their employees to use their iPhones to create video blogs to connect with customers. These video blogs, or vlogs, are increasingly popular. They provide customers with insights into the people who make the business run, strengthening the connection between the customer and the retailer. For example, a clothing boutique could ask its designer to do a vlog to promote a new line of clothing. Fashion shows can become viral via mobile video.

A note of caution, however: To maintain quality, Apple has restrictions on video file sizes and how they’re encoded, and will reject a video application outright if the videos don’t meet their specifications. To avoid this scenario, look for content delivery technologies that can encode videos at a lower bit rate but still maintain high quality video and audio.

Mobile video is a great way to capture the attention of prospects, and turn these into lucrative buyers. To ensure the integrity of the video presentation, be sure videos are encoded properly. Giving users the option to opt in to videos and directing them to attractive “buy now” options is a highly effective way to increase revenues and brand identity.

Martin Hayward is the director of marketing for Tewksbury, Ma.-based CDN, Mirror Image Internet. (Photo by William Hook)