Decoding the AI Video Boom: Why It's the Future of Digital Content

We differentiate between Text-to-Video (AI creating videos from text) and Image-to-Video (AI animating still images into videos). For simplicity, in this article, I'll often refer to both technologies collectively as AI Video Generation.

👑The King of Social Media

In 2023, the global social media user base reached a record 4.9 billion people.

An average user spends ~145 mins daily, ~17 hrs / week, on these platforms, totaling a shocking 5.7 years over an average lifespan (counting an average lifespan of 73 years).[2]

Videos are the preferred choice for most internet users over text or images, and 52% of people are more likely to share video content than any other.[3]

91% of businesses use video as a marketing tool.
96% of marketers see video as an "important part" of their marketing strategy.[5]
92% of video marketers reported that video gives them a positive ROI.[6]

90% of social media users follow at least one brand.[7]
84% of people say a great video can convince them to make a purchase.[8]
69% of consumers are less likely to skip a video ad if it's relevant to their interests.[9]

76% of users have bought something they saw on a post [10]:

• 11% buying immediately,
• 44% deferring online purchases for later, and
• 21% opting to buy in-store.

I think no further explanation needed on how significantly social media and videos influence the way we shop today.

But… Why video has become the king of social media?🤔

📢Cutting Through the Noise in a Distracted World

Attention is everything in digital marketing.
In today’s digital age, companies and marketers are on a quest to invent ever-renewing, creative strategies to captivate their audiences and stand out from the competition.

However, the digital landscape is a dual-edged sword: while digital technology has brought access to gigantic amounts of information and enhanced informed decision-making through diverse data, it severely challenges our cognitive capacities.[11]

Excessively stimulating and feeding our brain with information can overwhelm it, complicating information processing and retention, and can lead to decreased attention spans.[12]

This complex dynamic between cognitive psychology and digital technology - where our attention gets easily distracted, and information processing and decision-making are constantly challenged - indicates the need to reevaluate engagement strategies.

Herein lies the significance of integrating video content into marketing efforts, as a potent solution to the digital dilemma, offering several key advantages.

As highlighted by the Digital Marketing Institute, video content is vital [13]:

• Potential ROI Catalyst: Videos engage your viewers longer and more effectively than text alone. Moreover, they have shown increasing conversion rates and encouraging customers to take action.
• Easing Your Customers’ Choice: By simplifying conveying messages, videos help inform and educate customers about your products / services in an easy-to-understand, digestible way. This is critical in a market flooded with options, where customers usually conduct their research before buying.
• Boosting Your SEO: Video content is favored by search engines that can contribute to your brand's SEO efforts, helping increase your visibility and drive traffic.
• Fostering Brand Loyalty: The personal and authentic nature of videos - not to mention live video - builds a deeper connection with your audience, nurturing trust and brand loyalty.

🎞️Breaking the Barriers: How AI is Making Video Creation Accessible

Engaging and retaining customers has always been a fight to the death.

As you saw above, with more people using social media, there's a massive growing interest in video. But video creation is typically an expensive and time-and effort-consuming task, which also requires subject matter expertise:

• 33% of marketers who don’t use video identify lack of time as the top barrier to video marketing adoption;
• 20% of marketers who don’t use video say it’s too expensive, and
• 15% of marketers who don’t use video don’t know where to start.[14]

Businesses are looking for easier ways to make and edit captivating videos without losing quality, which leads to the surging demand for AI video generator tools.[15]

Especially for those small businesses that interact with their customers on social media (77% )[16], AI video generators are becoming the go-to tool. Given their often limited marketing budgets, this technology makes video content creation affordable and manageable, optimizing the typically resource-heavy process.

🤖Tech Evolution: Bridging Creativity and Technology

Improvements in AI technology have also been a major factor in the development of the AI video generator market.

Today’s more mature AI technology means these tools can make your videos look more realistic and interesting to watch. Plus, with larger datasets and powerful computing resources, AI can generate videos with higher resolution and more complex animations. Also, cloud-based AI video makers enable anyone to easily make videos without spending a lot on hardware or software.[20]

The tech giants, like Google Brain, DeepMind, Nvidia, Adobe, Meta, and OpenAI, collaborating with top universities such as Stanford, UC Berkeley, and MIT, are all working on improving GenAI models and enhancing the quality of text-to-video technology.[21]

🛤️The Road Ahead

99% of current video marketers will continue using video, and 96% plan to either maintain or increase their video marketing budget.[22]

The key lies in creating customizable, high-quality videos that not only meet your customers' different needs, but also evolve with your business. This way, your content stays up-to-date and aligned with customer preferences and company growth.

Looking ahead, the AI video generation market is poised for substantial growth.

According to a recent Global Market Insights report, the global Text-to-Video AI market size was valued at $0.1 Bn in 2022 and projected to reach $2 Bn by the end of 2032.[23]

Factors such as new products, strategic partnerships, company buyouts, and rising government initiatives toward AI adoption are all expected to catalyze opportunities in this sector.[24]

As these developments unfold, AI video generation is set to become a must-have tool in the digital marketing arsenal, offering innovative solutions to engage customers and drive business growth cost-effectively.

📽️Ready to boost your marketing with AI videos?

Our upcoming article will discuss how diverse sectors can leverage AI video generation!💡Stay ahead in the digital game and subscribe! To explore additional topics or use cases of AI, feel free to check out our resources here.

🔗Sources used:

[1] https://www.statista.com/statistics/272014/global-social-networks-ranked-by-number-of-users/

[2] https://www.forbes.com/advisor/business/social-media-statistics/

[3] https://blog.hubspot.com/marketing/how-video-consumption-is-changing

[4]-[6] https://blog.hubspot.com/marketing/state-of-video-marketing-new-data

[7] https://www.forbes.com/advisor/business/social-media-statistics/

[8] https://www.linkedin.com/pulse/power-video-content-digital-marketing-embrace-visual-revolution/

[9] https://www.forbes.com/sites/garydrenik/2023/10/17/consumers-want-video-ads-but-with-certain-stipulations-according-to-new-research/

[10] https://www.forbes.com/advisor/business/social-media-statistics/

[11] Shanmugasundaram M and Tamilarasu A (2023) The impact of digital technology, social media, and artificial intelligence on cognitive functions: a review. Front. Cognit. 2:1203077. doi: 10.3389/fcogn.2023.1203077

[12] Lin, Y. H., Lin, Y. C., Lee, Y. H., Lin, P. H., Lin, S. H., Chang, L. R., et al. (2015). Time distortion associated with smartphone addiction: identifying smartphone addiction via a mobile application (App). J. Psychiatr. Res. 65, 139–145. doi: 10.1016/j.jpsychires.2015.04.003

[13] https://digitalmarketinginstitute.com/blog/the-importance-of-video-marketing

[14] https://www.wyzowl.com/video-marketing-statistics/

[15] https://www.marketsandmarkets.com/Market-Reports/text-to-video-ai-market-236764144.html

[16] https://www.forbes.com/advisor/business/social-media-statistics/

[17] u/chaindrop from r/StableDiffusion (March 23rd, 2023): created by using ModelScope text-to-video

[18] https://cdn.openai.com/sora/videos/tokyo-walk.mp4

[19] Marques Brownlee - AI Generated Videos Just Changed Forever:

https://www.youtube.com/watch?v=NXpdyAWLDas

[20] https://martechseries.com/mts-insights/staff-writers/ai-video-generator-market-role-of-ai-in-producing-video-content/

[21] https://www.deepbrain.io/blog/text-to-video-ai-market

[22] https://blog.hubspot.com/marketing/state-of-video-marketing-new-data

[23] https://www.gminsights.com/industry-analysis/text-to-video-ai-market

[24] https://www.marketsandmarkets.com/Market-Reports/text-to-video-ai-market-236764144.html

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