We live in the same world as generative AI, a world where McKinsey believes personalization of services will become less a norm and more a necessity. Personalized video marketing is one of the many examples of how brands can leverage a blend of customization and technology to enhance emotional bonds with their consumers. 

In 2024, the use of personalized video will continue to grow as brands look for innovative ways to engage their customers and provide them with relevant and valuable content. Let’s take a closer look at how you can incorporate personalization into your video marketing strategy. 

What Is Personalized Video Marketing?

A ''personalized'' video is a marketing video that is tailored to a specific customer or customer segment. So, personalized video marketing becomes the practice of creating and sharing such videos on your brand's marketing channels, ranging from social media to websites. 

The personalization in such a video could be on several factors, such as: 

• Demographic data (age, gender, location)
• Customer behavior and past interactions
• Purchase history or interests
• Customer preferences 

Facebook is an excellent example of a company that has used personalized video in the past. If you're an avid Facebook user, you must have received a Faceversary video in which the social media company celebrates the day you joined its platform. The video would show some of your posts along with a message from Facebook about how delighted they are to have you on their platform.

Benefits of a Personalized Video Marketing Strategy

Personalized video offers a wide range of benefits for brands. 

• Increased Engagement: Personalized videos are more engaging than generic videos because they are tailored to the individual viewer. Customers are more likely to watch a personalized video and engage with the content because it is relevant to their interests. In fact, 71% of customers want some degree of personalization, and 67% will be frustrated if they don't see personalized content. 
• Higher Conversions: Personalized videos can lead to higher conversions because they provide customers with personalized product recommendations and offers. Think of your Amazon shopping sprees. You keep adding products to the cart because of the ''Frequently Bought Together'' section. The recommendations are just too good to be passed on!
• Improved Customer Satisfaction: Customers feel valued when they receive personalized content, which can lead to increased loyalty and repeat business. As we all know, happy customers equal a successful business. That's why 69% of business leaders are increasing their investments in personalization. 
• Better ROI: Personalized videos can provide a better return on investment because they are more effective at engaging customers and driving conversions. McKinsey data shows that personalization can lift your revenue by 10 to 15%. In some cases, it may go up to 25%. 

Here are a few quick facts:

1. Personalized videos boast click-to-open rates approximately 16 times higher than generic videos and have the potential to amplify conversions by up to 500%.
2. Personalized videos have a 35% higher chance of retaining viewers than their non-personalized counterparts. 
3. Wibbitz found that 98% of marketers believe personalized video improves customer relationships. Plus, 86% of consumers are more likely to make a purchase after watching a personalized video.

How Brands Are Using Personalized Video Marketing in 2024

It's no surprise that marketing personalization trends are evolving. After all, AI has entered the game. In this era of ''hyperpersonalization,'' here's how brands use personalization in video marketing. 

1. Personalized Product Recommendations

Brands are using personalized videos to recommend products to individual customers. For example, a clothing retailer might create a personalized video for a customer that showcases previously purchased items and suggests complementary items they may be interested in.

Not only that, but brands can also use personalized video marketing strategies to remind customers about certain things. Take Tesco as an example. The company created a personalized video to offer recommendations to Clubcard members about the places and things they can enjoy using their vouchers.

By providing personalized product recommendations, brands can increase the likelihood that customers will make a purchase.

2. Personalized Messaging

Personalized messaging simply means brands are speaking directly to each individual customer. For instance, a bank may use a customer's name and specific account information in a personalized video message to remind them of upcoming payments or promotions. 

Vodafone, a British telecommunications company, is popular for its super-personalized marketing and advertising campaigns that develop deep emotional connections with their users. Here is how the company utilized personalized video strategy to strengthen its messaging:

3. Personalized Offers

Brands use personalized video marketing to present tailored offers directly to individual customers. For instance, a restaurant could craft a personalized video for a customer, extending a special discount for their next dining experience. Through these personalized incentives, brands enhance the probability of customers engaging in a purchase.

A good example here is Paddington, the beloved bear. In 2018, a tweet was published on the film’s official Twitter account saying that the Paddington bear would send people reminders when the new Paddington 2 movie drops if they retweeted the tweet. 

The tweet got thousands of reposts. Everyone who had reposted got a short and sweet personalized update when the movie was released. 

4. Personalized Customer Service 

Gartner reports that providing tailored customer experiences is still a challenge faced by 63% of marketing executives. As digital marketing personalization becomes more mainstream, the issue could get bigger. 

Personalized videos can be helpful in this regard, too. By providing personalized customer service, brands can improve customer satisfaction and loyalty.

For example, a telecommunications provider might create a personalized video for a customer that walks them through a technical issue they are experiencing. Similarly, a resort or hotel may send personalized videos to guests before their arrival. The video could include their name, reservation details, and suggestions for activities or amenities based on their past preferences.

For instance, Europa-Park, Germany's one of the largest hotel resort, created a personalized welcome video to send hotel guests their booking confirmation.

Since 69% of customers want a personalized experience across different channels, such an approach can catapult a brand’s customer loyalty. 

5. Personalized Onboarding 

Brands also use video personalization to onboard new customers. For example, a software company might create a personalized video for new customers. 

These videos often walk customers through the onboarding process step-by-step, offering guidance and relevant information specific to the individual's needs and interests. Why do these videos work? Because they make customers feel empowered and informed from the outset of their journey with the brand. 

Here is a welcome video from HubSpot Culture that shows how the company welcomes new team members.

6. Personalized Event Invitations

Customers no longer want to feel like numbers. Instead, they want brands to cater to their unique needs. Personalized video invitations are one way to meet customer demands. 

Breast Cancer Now did this best when it launched its Wear It Pink fundraising event. In 2019, the charity sent personalized video messages to everyone who used the #WearItPink hashtag on social media. 

7. Personalized Content

What better example of brands making personalized content than Spotify? The music streaming service has taken content marketing personalization to the next level with its yearly Wrapped. Every user gets a personalized video that summarizes their listening habits for the year. 

Spotify even made a 2023 Wrapped video for Taylor Swift as the Global Top Artist of the Year.

The personalized video marketing strategy has not only helped Spotify retain users but also generated a lot of buzz and excitement among its user base. Other brands can also take notes. 

Conclusion

Summing up, personalized video is a go-to tool for brands that want to make their customers feel like more than mere names or numbers. Following the upcoming marketing personalization trends will keep you ahead of the game. 

Don't miss out on the use of AI in personalized video marketing as more and more relevant tools roll out.