by Scott Black, TimePiece, PR & Marketing

Given that an automobile is typically the second largest purchase that an individual makes, it has an emotional connection with consumers that is far stronger than with other products. People love to customize their vehicle with performance parts, cosmetic touches and comfort features.

The current economic turmoil has been especially hard on the auto and parts industry. Companies are scrambling for a smarter way to stand out and tap into the passion of consumers who are interested in buying their products.

Survival requires bold thinking and a new playbook. Manufacturers, especially of those that offer niche or enthusiast oriented products, should embrace digital strategies. Given the low cost and instant delivery, it is a critical ingredient to compliment traditional marketing activities.

While many organizations are building dynamic web sites, jumping on the social networking bandwagon and sending email blasts out like candy at Halloween, they are missing a new opportunity to significant connect. The missing piece of the puzzle, the one that could significantly change the way their business is perceived, is on-line videos.

The Dawn of Video
On-line videos, often called "video on demand" offer one of the most creative, cost-effective and innovative ways to break through. When properly managed by a multi-media marketing firm that understands the fundamentals of good storytelling, the results can be remarkable.

Videos allow organizations to connect with the media through their PR program and more importantly, directly to consumers. Bypassing the filters imposed by talking heads and self-appointed experts by communicating in this medium has been a proven road to success.

For decades, the cost of film production, as well as limited and expensive distribution, meant that few companies could invest in video. Extended versions of commercials, such as Ford Motor Company's "The One" that introduced the Ford GT was "leaked" on the Internet. But they rarely provided little more additional content than the TV spot.

With the rise of cable TV, reasonably priced satellite options and fiber optic systems, there were few broadcast options for videos. Even TV outlets are fragmented and depend on the content value of a program to attract large audiences at a precise moment. The risk and expense required to market with video was simply too high.

In addition, video production equipment was expensive and complicated. Production houses could command premium fees because the barriers to be in the business were high while the pool of qualified talent was small. In an economy ruled by supply and demand, video production companies could name their price for those with pockets deep.

The Digital Filming Revolution
Over the past several years, a convergence of technology has leveled the playing field for small companies who understand the power of video.

"Many trace the meteoric rise in the popularity of the car collecting hobby to Barrett-Jackson's debut on the SPEED Channel," said Steve Davis, president of the Barrett-Jackson Auction. "By putting all the action of our fantastic, automotive lifestyle events on TV, even more people were encouraged to get involved. This powerful medium has had an incredible impact on our business and industry in general. The proof is in the number of other auction companies that have tried to emulate our broadcasts over the years."

The quality of digital video equipment has made quantum leaps in terms of quality and ease of use. What once cost tens of thousands of dollars to purchase high definition cameras, big memory editing computers and software can now be obtained with much smaller budgets. Now, small marketing firms can afford to equip their creative teams with versatile, lightweight video systems sporting hard drives from names like Sony, Panasonic and Hitachi instead of hiring crews from a production house that cart around $100,000 beta tape video cameras. The savings in batteries and video tape alone have made these digital handheld cameras more cost effective than the previous technologies.

It's now possible to integrate music, still images and video from multiple sources to create a sharp, informative and entertaining video short. Instead of filming for weeks on location, running up production costs with expensive shots or hiring celebrity talent, a marketing firm can quickly turn a piece out that is can be a relevant, compelling and timely as an ad in a digital edition of the newspaper or local TV station.

When this equipment is wielded by people who know both how to create a video, and most importantly how to tell a compelling story, the result is genius.

"Videos that once were pitched to our dealership group for $25,000 plus, often not including distribution, can cost less than a third of that budget," notes Kurt Fegraeus, managing partner at Aston Martin of Dallas. "By integrating the video assets made available from Aston Martin with shots and interviews done in one day at the dealership, we created a video that feels like a high dollar production for our discriminating clientele that can be viewed on-line by thousands, or even tens of thousands."

A Broadcast Revolution
The second significant change has been in distribution of videos. While many corporate sites include their commercials, the explosion in on-line videos over the past two years has altered the face of marketing

"What USA Today did to the newspaper, YouTube did for television," stated Aaron Cook, vice president of VROOM Creative. "The international distribution of video y popular online web sites has forever changed the way people are informed and entertained. The expectations for production quality, with widespread acceptance of online videos has created a tremendous breakthrough. Now it's ok to broadcast a video that offers a great story but does not have a Hollywood or Madison Avenue finish."

Today, YouTube is no longer the only game in town. Anyone can upload and view videos on Meta Café, photobucket, Ustream.tv, Qik, Kyte or Flixwagon. And a new generation of sites like Cinsay offer exciting "channels" to broadcast videos. These sites integrate video series produced by small independent groups who depend on sales of products into their business model instead of relying on click through advertising. Much like the sales of t-shirts at concerts, the merging of entertainment and merchandising in a singular platform has created new distribution opportunities for companies that are not restricted from selling products on-line by franchise laws.

The rise of 3G "smart" phones and new wireless streaming technology has made production and distribution of on-line videos more important than ever. Consumers are hungry for short, entertaining videos to amuse and inform them while on the go.

While website visitor data is not ideal for measuring the use of mobile video, Qik's traffic increased by 200% within a year.

According to Erik Linask, Group Managing Editor of TMCnet, "I've come to believe that there is a future for mobile video — and I imagine it can easily extend into the business world as well."

It's Still a Medium
The low cost video production and explosion of distribution channels presents organizations today with an unprecedented opportunity to rev up their marketing, spend their dollars judiciously and measure their success. But this does not mean that companies should just turn on the camera in a digital video suite. It's a bit more complex.

"People make videos come to life, not just technology," adds Cook. "Just like social media, they can't just be blatant commercials. They need the same elements as any good narrative, along with great visuals to bring the story to life. And the messaging should be consistent with the organization's other tactics, such as ads, web sites and press releases."

Thus, the smart investment is to work with a nimble marketing firm that can build a two to five minute video based on a story. And the work needs to be easily viewed on the web, available for distribution on DVD or downloadable.

"No one should launch a product today without the use of news releases, images and video," says Jim Owens, Shelby Automobiles vice president of marketing communications. "This digital approach is the best way to tap directly into the enthusiasm for your product and leverage traditional marketing strategies such as publicity campaigns, experiential programs and advertising. On-line videos are becoming as much a part of a marketing campaign as the press release and sales materials."

To learn more about on-line video campaigns, contact Scott Black at sblack@tprm-usa.com or visit www.tprm-usa.com.