Video marketing on the Internet is a widely untapped and vastly misunderstood resource. Notice that I use the word "untapped." It's not as if it's not being done on a broad scale; it's just not being done effectively.

Let me clear up a few points by doing a little FAQ on the subject.

What is video marketing?

Using video distributed via Internet to reach your market and tell a compelling story about your brand, product or service -- that is the short definition.

How does it differ from other forms of marketing?

It does not differ in essence; you want to reach the right people with the right message. Internet video is just a different medium. That is the difference. Targeting is much more difficult, messaging trickier.

What companies or organizations use video marketing?

Almost all of them, the smart ones anyway.

What are the advantages of Internet video marketing as opposed to more traditional media?

Great question! Let me list a few.

1. Economics -- For a few thousand dollars, you can get production and a full year of distribution. Running a quarter-page newspaper ad for a week will cost more in most markets. Running an ad on television -- even locally -- will cost much more.
2. Potency -- You may not get a quarter of a million impressions (or you might get many more), but the impressions hit hard. For one thing, you are not limited to 30 seconds or a quarter page. For another, you can build a high level of trust by providing interesting, entertaining, and informative video content, not just an ad.
3. Pull -- If your video marketer knows what they are doing, your video is kind of like a Yellow Pages ad in that it pulls people who are looking for what you offer. Say you own a bicycle shop in Tuscaloosa. Five people looking for Tuscaloosa bicycle shops and viewing your video are likely to result in at least a couple of sales.
4. Synergy and Piggybacking -- People looking for restaurants in Tuscaloosa will find your bike shop in the "related videos" box. People looking for cool bicycle videos will also find your video. Moreover, your video can be used to drive people to your website. There you can engage in full-spectrum marketing: Special offers, interactive community, more videos, or tips and tricks for bicycling in Tuscaloosa. Your video exists in a web. Casting a strategic and wide net is the key.

Those are just a few of the advantages of video marketing. There are others.

What kind of results can I expect?

It depends on your business and the effectiveness of your video. You need to work the numbers out for yourself, but I always tell my clients to expect results, not miracles.

One thing that you can count on is a high level of response due to the pull nature of the medium and the strength of the impressions. Of course, if your video stinks, all bets are off.

A few red flags when considering doing business with a video marketing company:

Since video marketing is relatively new and not widely understood, there are some sharks out there. These are people who...

• ... make guarantees. Sure, I could guarantee my clients 120,000 views in the next year. You can buy views for a penny or two. Is that serving my clients? No. Nobody can guarantee you top search engine rankings, either. I can show you previous results, but nobody knows how things will shake out for any given piece of content.
• ... offer little creative direction. A lot of companies offer cookie-cutter videos. Remember that this is marketing -- the story you tell and the people you tell it to are everything. Make sure to check your video marketer's previous work, and ask yourself this question: "Am I intrigued enough to learn more about or try this company after viewing the video?"
• ... charge way too much. You should not be paying more than a few hundred dollars a month for distribution and promotion of your video, and it should be distributed widely (as in, way beyond YouTube) for that price.

In sum, the web+video = powerful marketing tool. It is inexpensive, it pulls people who want what you have, and its effects last for as long as your video remains online.

Every business large or small should try it for at least one campaign.