It’s 2017, and the demand for video is practically insatiable. Businesses all over, from established conglomerates to local start-ups, are subscribing to one of the most affordable—and most proven—forms of marketing/advertising. And as any good economy goes, supply has gone up to meet demand. We may not be at the point where the former outnumbers the latter, but the rise in video production houses and independent video editors is dictating the future of Long Beach video production. Specialization may be the new key to survival.
Positioning—Easier To Find
According to One Market Media, the newer video production companies may begin specializing “in specific business verticals like health care or real estate.” This puts them in an advantageous position.
A brand or company that doesn’t know the first thing about video marketing and production will try to be as specific as possible when searching for a potential partner. Ergo, a Long Beach video production company that offers specifically ‘health videos’ or ‘real estate videos’ will be found much faster than a production house that only fits the ‘video production’ requirement.
For example, a health insurance brokerage that’s only just trying out video marketing will probably search for ‘video production companies insurance broker’ or ‘insurance brokerage video production.’ If your firm is specifically predisposed to producing videos about insurance, brokers, and insurance brokers, they’re more likely to choose you—especially when compared to a production house that simply offers video.
Exclusivity Allows Higher Prices
Becoming the go-to provider for quality videos in a certain field means you can stand to raise your fees. Focusing on one niche gives you the opportunity to familiarize yourself with it and build more experience in that area, as compared to production houses that cover every niche. Entrepreneur Corey Pemberton on Screenlight writes that you can charge higher rates based on the specialized knowledge you gain in your chosen area.
“Quality clients are happy to pay premium rates that only you can deliver,” he writes, acknowledging the fact that customized products often cost more than generic items. In a similar way, video production companies that are specific to one or two niches give present themselves as a company tailored to a potential clients’ exact area of expertise.
The Problem With Generalization?
The argument that can be made against specialization is that you have lesser clients to choose from and you run a risk of remaining locked in that niche forever. Both are easily addressed—and not necessarily true. The first concern, regarding lesser clients, can also be viewed as lesser competition.
If you’re a generic Long Beach video production house, you may have 100 potential clients. You may also have 100 competitors. To keep this illustration simple, let’s say 20 of those potential clients are insurance brokers. If you specialize in creating marketing videos for insurance brokers, you catch the attention of those 20 brokers. Let’s say of the 100 competitors, only 5 specialize in the insurance niche.
The first instance—being generic—works out to an ideal 1 client per competitor. The second instance—which is specialization—works out to an ideal 4 clients per competitor. Specialization may mean a narrower net, but you’re the only one fishing in the pond.
For the second concern, it’s important to remember that specialization is especially crucial while you’re establishing a name for yourself. According to Pemberton, “specialization is a shortcut to building your reputation.” In a year or two, after you’ve proven yourself and your production team, you can add another niche—like real estate, architecture, and etc. You may even switch niches if you’re so inclined. You are only as limited by specialization as you allow yourself to be.
We’re approaching that point where a Long Beach video production company that offers one-size-fits-all products may not be enough to get the phone ringing. Focusing on a specific niche or niches may prove more advantageous, profitable, and educational in the long run.