Digital video is becoming an increasingly popular form of consumption. It’s rise has coincided with that of smartphones and how often users watch digital videos through their devices. This has caused many companies to include digital video usage in their targeted internet marketing budget, but not many know exactly how to do so.

According to iMedia Connection, there are three companies using digital video to its potential: Nerdist, Nike and Hot Wheels.

Nerdist’s YouTube page is one that is very well designed, as it makes it very easy for viewers to subscribe and access other features online. Nike provides easily organized and creative videos that promote the brand as well as wellness and inspiration. Hot Wheels is in the middle of a series of short adventure documentaries, which have a “previous” and “next” button embedded in them to allow new viewers to catch up or skip ahead in the series.

But, while having high-quality videos that engage consumers is an excellent marketing strategy, placing advertisements on other digital videos can be just as important as it can open up the marketing to a wide number of consumers.

While supporting an innovative and engaging YouTube channel can help create a more loyal customer base, using pre-roll video or banner advertisements on sources such as Vevo, YouTube and even internet radio stations such as Pandora can help target the right audience based on what they may be watching and bring them to a company’s YouTube page or e-commerce site.

Regardless of the strategy, it’s clear that companies need to begin investing in digital video marketing- whether it’s through their own productions or by purchasing space on others for their advertisements. By partnering with an experienced digital advertising agency, small businesses can ensure they take full advantage of this medium.