By Neil Davidson
We work with many small businesses and entrepreneurs on video projects and are fans of the Kickstarter crowd funding website.
We noticed a trend that it always seems to be projects that have great videos that are the most successful in getting funded, and wanted to find out if there was any data to back this theory up.
We painstakingly analysed 7,196 projects on Kickstarter to see what advantages having a video gives a project owner looking for funding.
The results, as you will find out in a minute are actually astounding and have implications beyond just Kickstarter as this is effectively a study on how video influences conversion rate.
Background to the analysis
Kickstarter projects work on an all or nothing basis. The project owner sets a target amount of money that they need to raise in order to make their project happen and if they fail to raise 100% of that amount then the project fails to get any funding.
In order to ensure that our data was representative we needed to understand what percentage of projects on Kickstarter succeeded in gaining funding as this would allow us to analyse a set of projects by the same percentage, and then to look at the funded group and the non funded group to see what % of each group had a video.
For example if we looked at only videos that had gained funding we would not be able to see the effect video has in helping project owners to get funding, Likewise if we only analysed projects that failed to get funding we would not be able to see the effect of video.
On Kickstarter 56% of projects fail to get funded and 44% achieve funding – see detail here.
Therefore in order to make our data representative of the Kickstarter site as a whole, from our total of 7,196 projects we would ensure that 3,166 successfully received funding and the balance of 4,030 would be projects that had failed to get funding.
In addition to the top-line stats we looked into a range of other aspects of the data to uncover the types of projects where a video is most important and also the specific geographical areas of the world where a video is most influential in helping a project to get funded.
The research findings
The relationship is strong!
Overall we found that projects that have a video are 85% more likely to achieve their funding goal. In total 48% of the projects that have a video achieve their funding goal and 26% of projects that do not have a video achieve their funding goal.
Where are most successful Kickstarter projects based?
Being a USA based organization the majority of Kickstarter projects are from America. The locations with most projects are California (19% of total projects) and New York (13.6%). followed by Texas with 4.6% of projects and the others less.
Again; blue is with video and red is without video.
Outside of the USA there are few locations with high volumes of projects although the UK is by far the most active outside of the USA. The UK has 2.6% of projects and all other nations are less than 1% of total projects. This chart shows the effect that a video had on projects in the 4 countries with the most projects as shown above.
See below the link to the infographic giving full detail of the study: http://mwpdigitalmedia.com/blog/wp-content/uploads/2013/07/infographics.jpg
About the author
Neil Davidson (https://twitter.com/WEBPRESENTER) is the Founder of MWP Digital Media and has been working in online video since 2008. He writes 2 blogs about online video and is a regular speaker at industry events and workshops.
MWP Digital Media (http://mwpdigitalmedia.com/) are a video production company specialising in results driven video production. This means that they are not only concerned about representing brands well but also in getting them a positive return on their investment in online video.