Video Marketing: What Small Businesses Need to Know

Video has won. The data is overwhelming.

93% of marketers now report positive ROI from video — the highest Wyzowl has recorded in 11 years of their annual survey. 89% of businesses use video as a marketing tool. And when consumers want to learn about a product, 78% prefer watching a short video over reading text or viewing images.

But here’s what most video marketing advice gets wrong: they assume you have a production budget. Most small businesses don’t. They have a smartphone and limited time.

Good news: that’s often enough.

Why Video Works

Before we get tactical, let’s be clear about why video matters:

Conversion impact: Video on landing pages can improve conversion by 86%. Sites using video have 4.8% conversion rates versus 2.9% for those that don’t.

Trust building: 91% of consumers say video quality impacts their trust in a brand. That number is up from 87% last year — quality expectations are rising.

Lead generation: 87% of video marketers say video has helped generate leads. 82% say it increased web traffic.

Engagement: YouTube Shorts leads short-form engagement at 5.91%, followed by TikTok at 5.75%. For comparison, static posts on most platforms see 1-3% engagement.

The question isn’t whether video works. It’s how to do it with limited resources.

The Types That Matter for Small Business

Not all video content is equal. Here’s what actually drives results:

Short-Form Social Content (Reels, TikToks, Shorts)

What it is: 15-60 second videos for social platforms

Why it works: Algorithms favour video. TikTok gives accounts under 100k followers an average 7.5% engagement rate — impossible to achieve with static content.

Cost: Essentially free (your phone, free editing apps)

Best for: Awareness, reach, showing personality

Reality check: The first 10 videos you make will probably flop. That’s normal. Consistency matters more than individual performance.

Explainer/Product Demo Videos

What it is: Short videos showing how something works

Why it works: 99% of video marketers say video helps increase user understanding. If your product or service is hard to explain in text, video solves that.

Cost: DIY (£0-100) to professional (£500-2,000+)

Best for: Website homepage, product pages, sales process

Reality check: These don’t need Hollywood production. Clear audio, decent lighting, and a focused message beat expensive production with unclear messaging.

Customer Testimonials

What it is: Customers talking about their experience

Why it works: Social proof on steroids. Real people are more convincing than any copywriting.

Cost: £100-300 DIY, £500-1,500 professional

Best for: Website, sales materials, case studies

Reality check: One authentic testimonial from a happy customer outperforms ten polished corporate videos. Authentic beats perfect.

Behind-the-Scenes Content

What it is: Showing your team, process, workspace

Why it works: Humanises your brand. People buy from people.

Cost: Essentially free

Best for: Social media, building connection

Reality check: This content feels weird to make at first. “Who cares what our office looks like?” But audiences love seeing the humans behind businesses.

Educational/How-To Content

What it is: Teaching something valuable related to your expertise

Why it works: Establishes authority, drives SEO (YouTube is the second largest search engine)

Cost: Varies — can be DIY with planning

Best for: YouTube, building trust, SEO

Reality check: Long-form educational content requires more planning but has longer shelf life than social clips.

What Things Actually Cost

Let’s get specific about video costs:

DIY with smartphone:

DIY production time:

Professional production:

The gap between DIY and professional has shrunk dramatically. A smartphone from the last 3 years shoots better video than professional cameras from a decade ago.

The DIY Quality Checklist

You don’t need expensive equipment. You need:

1. Decent audio (most important)

Bad audio kills videos faster than bad visuals. A £30 lapel mic improves audio quality 10x over phone’s built-in mic. If people can’t hear clearly, they won’t watch.

2. Good lighting

Face a window. Natural light is free and flattering. Avoid harsh overhead lights and backlighting (window behind you). If you want to invest, a ring light (£20-50) handles most situations.

3. Stable footage

Use a tripod or prop your phone against something. Shaky handheld footage screams amateur. Exception: intentionally dynamic content for social media where movement adds energy.

4. Clean background

A plain wall or tidy bookshelf beats a cluttered background. What’s behind you communicates something — make it intentional.

5. Clear message

Know your one point before recording. Rambling kills videos. Write a simple outline: Hook → Main point → Call to action.

The Honest Numbers on Results

What can you realistically expect?

For social short-form (Reels, TikToks):

Engagement rates drop as video length increases. Videos under one minute see 50% average engagement. Over 60 minutes drops to 17%.

For YouTube:

For website video:

Most marketers (73%) believe videos between 30 seconds and 2 minutes are most effective. Shorter than 30 seconds is hard to convey value. Longer than 2 minutes loses attention for most marketing purposes.

When to Invest in Professional Production

DIY works for a lot. But sometimes professional production makes sense:

Invest professionally when:

Stay DIY when:

The Biggest Mistake: Waiting to Start

The most common video marketing failure: “We’re waiting until we can do it properly.”

Meanwhile, competitors are posting imperfect videos and building audiences.

68% of marketers who don’t currently use video plan to start in 2025. The biggest barrier? 37% say they don’t know where to start.

Here’s where to start: Pick up your phone. Record yourself answering one question a customer asks. Edit it (CapCut is free and good enough). Post it.

The first video won’t be great. Neither will the fifth. But by the twentieth, you’ll have a library of content and know what you’re doing.

Platform-Specific Realities

Different platforms have different dynamics:

Instagram Reels:

TikTok:

YouTube:

LinkedIn:

Facebook:

AI in Video: Where We Are

51% of marketers have used AI tools for video creation or editing. Here’s what’s actually useful:

Useful AI applications:

Overhyped AI applications:

AI makes good video better and faster. It doesn’t turn bad strategy into good results.

Getting Started: Week One Plan

If you’re convinced video matters but haven’t started:

Day 1-2: Setup

Day 3-4: First video

Day 5-7: Commit to consistency

That’s it. By end of week one, you’ve started. The learning curve is steep at first, then flattens.

Measuring What Matters

Video metrics that matter:

View counts: Vanity metric. Good for ego, not business decisions.

Watch time/retention: Are people actually watching? If most drop off in 3 seconds, your hook isn’t working.

Engagement rate: (Likes + comments + shares) / views. Indicates content resonance.

Click-through: For videos with CTAs, are people taking action?

Conversion impact: For website videos, does conversion rate improve when video is present?

74% of companies measure video ROI using engagement metrics. 48% use conversion rates. Focus on what ties to business outcomes.

Is Video Marketing Worth It?

The data is clear: yes. 93% of marketers report positive ROI. Consumers prefer video. Algorithms favour video.

But it’s worth it when you commit. Random videos posted occasionally won’t move the needle. Consistent video marketing — showing up weekly or more, learning what works, improving over time — compounds dramatically.

If you can commit to that consistency, video is probably the highest-leverage marketing activity available to small businesses right now.

If you can’t commit consistently, don’t half-do it. Focus your limited time elsewhere.

Looking for help with video strategy or production? Our video production services help small businesses create video content that converts. Let’s talk about what makes sense for you.