The annual State of Video Technology report looks at how businesses need to communicate if they want to truly connect with their customers. Video is important, but it’s not just about making a slick commercial and calling it a day.
It’s deeper than that. Over 2,000 consumers across the U.S. and U.K. participated in this market study. We pulled out some of the highlights below, but you can download the full report here to dig into the data.
Or if you just want to watch the top takeaways, you can do that in under 65 seconds with the video below.
(Fun fact: We made the video above in a matter of minutes with our AI video generator.)
Demand for Video Rising Year Over Year
We know consumers care about video, but we can also see consumers care about it more each year. In 2024, 83% of consumers want more video from brands — it was 81% last year.
People want visual. And not just any visual. It’s video they’re looking for.
Especially when faced with complex information, video helps people understand your message. A majority (54%) of respondents said they prefer brands use video — even more than written text — to communicate complex information such as details of a new program or service.
And that makes sense. Our brains process audiovisual information better. It’s clear, engaging, maybe even a little fun.
But here’s the disconnect. Only 19% are actually getting video frequently from brands.
That’s a huge gap. Consumers are asking for it, but it’s not happening. And that’s a missed opportunity, especially when you consider the power of Next Generation Video.
Next Gen Video Influences Consumer Behavior
What is Next Generation Video? Think interactive, personalized, customizable by the user, even AI-powered. This is about the experience, not just watching.
Over 80% of consumers are interested in video with interactivity. That’s up from 79% last year. And an overwhelming majority of Gen Z — 93% — say they’re interested in it.
It means you’re not just watching but instead participating. Imagine a product demo, but you can click through to the features you care about. Or a travel video, but you can customize the itinerary based on what you like to do. Choose your own adventure, so to speak. Wondering what that could look like? Have some fun with the video below.
Engaging, visual content is always more memorable. We’re hard wired for that, especially when we get to control the experience, which is why there’s a growing interest in user-customizable video as well. It’s up from 72% in 2023 to 77% this year.
And these preferences can influence purchase decisions. When a brand uses Next Gen Video tech that leverages interactivity, user customization or AI, twice as many consumers say they would be interested in purchasing its products or services.
This is higher for younger customers (72%) and high earners (74%), two early adopter cohorts that lead the charge for consumer trends. It makes sense. Those who are younger have grown up expecting that kind of control and customization when it comes to the content they engage with. And those with more disposable income can seek it out.
Personalized Video 3x-4x More Effective
In the market study, consumers were shown both a personalized and non-personalized video so they could compare them. After seeing these, they shared how this kind of video content would affect them. Just like last year, Personalized Video was over 300% more likely to build trust and loyalty compared to traditional video.
Think about it. A brand takes the time to tailor something just for you. That means something. It’s like a handwritten note versus a mass email — night and day. It hits us on a psychological level, making you feel seen and understood.
And that builds connection, which makes the tie back to loyalty a given.
Data doesn’t have to be a barrier either. Just personalizing with the first name in a video can have a wow effect.
Consumers also said they’re willing to share data with brands they do business with. Gen Z, in fact, were the most willing to share their data — if it means getting those personalized experiences. They want that value exchange.
It’s not enough just to personalize an email in your CRM. Brands need to step it up to get noticed.
Consumers Ready for AI
AI is everywhere these days, including video content, but most brands still aren’t leveraging it. Yet over 75% of both Gen Z and high earners (the earlier adopters) are keen for AI videos from brands.
For a full breakdown of the data, check out our interview with MarketingSherpa about Gen Z and millennial interest in AI video.
Some consumers reported having concerns about AI. These range from the lack of personalization to the risk of inaccuracy. The solution? Make sure the quality of the video content you share, particularly it being accurate and on message, is up to par with your other brand content
Consumers also said they’d rather have an AI video than a document with the same info. They were 2x more likely to choose the AI video when compared to a document. And the best part is that the video they chose was made in minutes from that same document with the help of AI. So you can give people what they want without extra effort on your part.
U.S. and U.K. Consumer Differences
It’s interesting to note that Americans are a bit more gung ho about Next Gen Video. Americans are even more likely to want more video from brands. They also get more of it, though it’s still not enough.
And they’re more into interactive and AI-generated possibilities.
In the U.K., consumers still want video, but they’re more measured in their enthusiasm for new tech. So while 77% of U.K. consumers want Interactive Video, a whopping 86% of U.S. consumers say the same.
But there are some similarities. Over two thirds of both groups said Next Generation Video would increase their likelihood of buying a brand’s products or services. And the vast majority of both groups (around 8 out of 10 consumers) say they want more video from brands.
Takeaways
With consumer demand for all video content rising, Personalized Video building those deep connections, and AI changing the game, there’s a lot for video marketers to keep track of. What’s the takeaway?
Simple. The future of video is about the consumer experience. It’s not about you or your brand — not really. It’s how you can put your customer in the spotlight. Share a message hyper-personalized for them or let them put their own spin on their content. (Maybe let them humblebrag a bit.)
Because even though it’s called the State of Video Technology, the tech only matters in relation to the human element, making content that’s easy for people to understand and fun for them to engage with.
Videos that don’t just get watched. They get talked about, remembered, shared.
So as you’re figuring out your own video game plan, think about it. How can you leverage advanced video technology — personalization, interactivity, even AI — to tell your story and connect on a deeper level?
The future is waiting.
