"training video companies"
MARKET RESEARCH Fall 2008 Video Training: Topics & Trends On Video Video has become one of the most effective communication tools in business today. Using video, companies are now able to share knowledge and bring employees together, through any distance, in a simple and cost-effective manner. Video is the future of business communication. Survey Results at a Glance As training and leadership development professionals, you told us that the above is true. Yet, in training applications, your collective responses suggest that the value of video will be greater, and use of video will increase, when: § Creating video becomes easier and less costly § Sharing becomes secure and auditable § Engagement can be measured in detail Overall, you are interested in better tools and best practice advice. Summary As a software vendor whose products are used in video training applications, Wistia surveyed leaders and practitioners in training roles in order to better understand how video is being used by the industry. We sought to learn how frequently video is used in training today and what obstacles arise in its deployment and tracking. Video's unsurpassed ability to deliver high-impact and effective messaging has lead to heavy usage in the fields of advertising and marketing in the past. Currently, video is rapidly becoming equally popular in the demanding discipline of training. Our survey results clearly reflect this trend – companies are investing in video, directly leading to measurable business results. Responses showed that sales training and new -hire orientation both benefit significantly from video’s ability to quickly transfer complex knowledge. Recently, it has become increasingly simple to create video. Production costs have dropped, equipment has become more affordable, and editing tools are more accessible. Over half of those surveyed indicated that they plan to or already create video content internally. Just a few years ago, the cost of equipment alone prohibited the vast majority of businesses from producing their own video content. Despite this trend, organizations still face a number of challenges when incorporating video into their training programs. This report presents a detailed analysis of the current state of video training in the corporate environment. 1 Wistia Inc. 430 Marrett Road, Lexington, MA 02421, 781.863.0210 MARKET RESEARCH Fall 2008 Methodology and Definitions Our survey was conducted over a four-week period: from June 17 to July 15, 2008. Respondents were contacted via email and invited to participate in our online survey. They are individuals in a variety of training roles across a number of organizations. In the following detailed presentation, we use the terms Extensive, Growing, and Evaluating. These terms equate to the following response categories: § Extensive: Using video extensively § Growing: Beginning to use video § Evaluating: Currently evaluating the use of video Note Percentages may not total to 100% because the survey allowed for multiple answers to a number of the questions. 2 Wistia Inc. 430 Marrett Road, Lexington, MA 02421, 781.863.0210 MARKET RESEARCH Fall 2008 Is Video Being Used Today? The survey results matched our initial hypothesis: video is currently seen as a valuable tool, with usage continually expanding. Over 60% of survey respondents have either begun or are already using video extensively as a part of their corporate training programs. Another 36% of the survey respondents are now evaluating its use in their training programs, indicating that video training will continue to popularize in the future. Level of Video Usage Currently evaluating 36% the use of video Beginning to use video 36% Using video quite 24% extensively No plans to use video 5% Among those with no plans to use video, most cited the inability to distribute and track video content, as well as the perception that video was too expensive, as key issues. One respondent in this group noted that they found human interaction to be more effective. This brings up a valid point: when it comes to communication, face-to-face exchange or first- hand experience cannot be fully replaced by video. Yet it appears to be equally true that in today’s over-scheduled and increasingly global work environment, businesses are looking to shift communication to an on-demand format to accommodate asynchronous work flows whenever possible. Rapid advances in video technology are now making it increasingly possible to integrate video into training activities and programs; many businesses are now finding video to be an excellent way to train efficiently and cost-effectively. 3 Wistia Inc. 430 Marrett Road, Lexington, MA 02421, 781.863.0210 MARKET RESEARCH Fall 2008 How is Video Used in Training? As the next graph indicates, the majority of companies currently or considering using video feel it can be most effective in the areas of training closely related to the generation of revenue – sales training, new hire orientation, and management skills training. Respondents choosing "Other" unanimously cited technical training activities as an additional category. Video Training Uses Corporate 9% Communications Policy Compliance 9% Training Channel / Partner 4% Training Sales Training 25% New Hire Orientation 22% Management Skills 16% Training Customer Education 11% Other 5% 4 Wistia Inc. 430 Marrett Road, Lexington, MA 02421, 781.863.0210 MARKET RESEARCH Fall 2008 (continued) How is Video Used in Training? When the data is broken out further, Extensive, Growing, and Evaluating companies were found to have similar priorities in their uses of video training. Within the Extensive group, it was also noted that the use of video has a much greater strategic impact on an organization's performance when used in sales training, as opposed to its use for internal corporate communications. Corporate Extensive Communications Growing Evaluating Policy Compliance Training Channel / Partner Training Sales Training New Hire Orientation Management Skills Training Customer Education 0 20 40 60 80 100 5 Wistia Inc. 430 Marrett Road, Lexington, MA 02421, 781.863.0210 MARKET RESEARCH Fall 2008 Creation of Video Content Over half of respondents reported that video training content is or will be created in-house. This indicates an investment in equipment and skills, and speaks to the long-term potential seen for video training. While technological advances are driving prices down and making it easier for the casual user to consider working with video, the cost of equipment and the complexity of the video creation and production process are significant obstacles prohibiting many businesses from producing their own content. Content Creation Method Pre-packaged 11% content supplier In-house production 52% department Ad / PR agency 4% Third-party video 22% production company Other 11% 6 Wistia Inc. 430 Marrett Road, Lexington, MA 02421, 781.863.0210 MARKET RESEARCH Fall 2008 Creation of Video Content (continued) As shown in the next level analysis, there is greater reliance on third-party video production and pre-packaged video content vendors in the Growing segment than in the Extensive segment. Wistia identified possible causes for this divergence, including: § The increasing availability of viable, narrowly-targeted third-party video production vendors § The increasing availability of pre-packaged video content § The increasing awareness amongst Growing organizations of the experiences Extensive organizations have had with in-house production § The need to test various methods before making the financial commitment involved in in- house production Pre-packaged content supplier In-house production department Ad / PR agency Third-party video production company Extensive Growing Evaluating Other 0 20 40 60 80 100 7 Wistia Inc. 430 Marrett Road, Lexington, MA 02421, 781.863.0210 MARKET RESEARCH Fall 2008 The Challenges of Using Video One quarter of the total survey group agreed that content creation still looms as the largest challenge in using video. Even amongst organizations that cited in-house production departments as their source for content, two-thirds felt creating content was still the largest challenge. A number of comments submitted from the survey group suggest that these difficulties arise from a lack of common goals between the internal clients and the in-house production departments. As a result, getting content with the right message from internal media departments still takes too long and is often times too costly. The two most frequently cited comments in the "Other" category were the high or hidden costs of video and the difficulty in updating video content. Challenges and Concerns Security and privacy of 8% video content Content creation 24% Tracking and measuring 21% the use of video content Quality of viewing 17% experience IT infrastructure and 15% support Content distribution 10% Other 5% 8 Wistia Inc. 430 Marrett Road, Lexington, MA 02421, 781.863.0210 MARKET RESEARCH Fall 2008 (continued) The Challenges of Using Video Concerns about both tracking the use of video content and the quality of the viewing experience follow closely behind content creation for the survey participants as a whole. When looking further into the differences between the three usage groups, these issues are less of a concern for those with the most experience with video training. The importance of a robust IT infrastructure and support climate rises dramatically as the level of video experience increases. Security and privacy of video content Content creation Tracking and measuring the use of video content Quality of viewing experience IT infrastructure and support Content distribution Extensive Growing Evaluating Other 0 20 40 60 80 100 9 Wistia Inc. 430 Marrett Road, Lexington, MA 02421, 781.863.0210 MARKET RESEARCH Fall 2008 Video Distribution While respondents cited tracking issues, difficulties in collaborating with an IT department, and security to be large concerns when using video training, our survey found that the most popular distribution methods did not address or alleviate these obstacles. While 21% of respondents noted that tracking was a key concern in the use of video in training, three of the most common distribution methods – website links, posting on an FTP location, and the use of DVDs – do not allow training professionals to track and confirm the knowledge transfer. The difficulty in collaborating with an IT department, also cited as a major concern, is again not addressed by these most popular distribution methods. When comparing the major concerns for using video with the shortcomings of current distribution methods, it is clear that a new method is needed. Distribution Method Challenges § not secure Post to FTP location 12% § difficult to track Custom in-house § high hidden costs 6% difficult to maintain application § § may require IT assistance Enterprise portal links 6% § hidden costs § difficult to track Website links 28% § may require IT assistance Third-part y CDN 3% provider § difficult to track Cut and ship DVDs 18% § hidden costs § may require IT assistance LMS 17% § high hidden costs Consumer video § not secure sharing site 1% § difficult to track (e.g. YouTube) Other 9% Note In the group describing itself as currently evaluating the use of video, 75% of the Other responses to this question were “don’t know ”. 10 Wistia Inc. 430 Marrett Road, Lexington, MA 02421, 781.863.0210 MARKET RESEARCH Fall 2008 Video Distribution (continued) The breakdown of this data further reveals the use of methods that do not address primary concerns regarding video training, as well as a lack of consensus on the best methods of distribution. Among the Extensive usage group, the most popular method by far is the shipping of DVDs. However, this method does not address tracking and can also involve many hidden costs. Amongst the Growing and Evaluating groups, website links were chosen as the most popular distribution method, yet these too do not allow tracking, may involve hidden costs, require extensive IT assistance, and are not necessarily secure. This information clearly highlights the need for a new method of distribution in order for the use of video training to grow . Post to FTP location Extensive Growing Custom in-house Evaluating application Enterprise portal links Website links Third-party CDN provider Cut and ship DVDs LMS Consumer video sharing site (YouTube, etc.) 0 20 40 60 80 100 11 Wistia Inc. 430 Marrett Road, Lexington, MA 02421, 781.863.0210 MARKET RESEARCH Fall 2008 Conclusions The results of our survey suggest that there is a need to make the production, distribution, and tracking of video training content easier and more efficient for businesses, without compromising investments made in equipment and content creation skills. The benefits of using video in training are numerous, in both convenience and cost-effectiveness. However, before video can become an integral part of training in all organizations, a better way of creating, distributing, and tracking must be found. Video sharing has gained a huge foothold in our collective awareness with the advent of YouTube and the explosive growth of web video. However, cost-effective, web-based, on- demand video sharing solutions that are easy for businesses to implement and use are relatively new. Our survey demonstrates that there is no shortage of demand for video as a training tool. However, these results also demonstrate the need for better tools to bring video training up to its potential. Contact If you have any questions or comments concerning this report, please contact: Adam Zais VP Sales & Marketing 617.513.3469 firstname.lastname@example.org http://wistia.com About Wistia Wistia offers a family of software products that enable your team, company, and customers to easily share video. We provide solutions throughout the video lifecycle – from the collaborative process of reviewing and approving content, to distribution and tracking. Our customers use our products for a variety of training and other collaborative applications in industries such as life sciences, technology, and manufacturing. Wistia makes video easy, secure, and measurable. We encourage you to visit http://wistia.com to learn more. 12 Wistia Inc. 430 Marrett Road, Lexington, MA 02421, 781.863.0210