by Rachel Brougham

Created on: September 11, 2008   Last Updated: October 28, 2008

Each day, millions of Americans log onto the world wide web. And each day, those internet users are bombarded with advertisements and messages for products and services. One of the fastest growing ways to advertise on the web is through online video. Online videos can be an extremely cost-effective way to advertise your business or service.

First of all, most internet users don't have the time to read more than a couple sentences about your business. Video on the other hand is a quick way to get your message across and internet users see the video as entertainment, not effort. As long as your video is compelling, you have the full attention of potential customers.

Second, video is a useful tool in education. Instead of handing over a manual about your company or product, a video is a more effective way to drive home a point. This alone can help you save time and money.

When you have an online video, you're seen as a leader in your field. Since online video is a growing medium, those businesses who have online videos are already seen as one step ahead of the game.

It's cheaper! Online video is one of the cheapest and most effective forms of advertising out there. When you advertise in other mediums, you take the risk of not hitting your target audience. But when you advertise online, you can get concrete numbers as to who is watching your video, what website they watched it on, how many times they watched it, and so on. It's much harder to measure results through television, radio and print advertising.

Recently, coffeehouse giant Starbucks wanted to find a creative way to increase customer awareness with its products. They launched videos on their website that further explained the features and benefits of some of their products. The videos helped Starbucks have more of an interaction with their customers through product education. It didn't take long for Starbucks to notice an increased awareness of their online products and an increase in visitors to their website.

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