This is something I have been experimenting with, just thought I would share my experience thus far & would love to get your insight & experience as I am quite new to this concept.
Video has proven to be a wonderful medium to communicate ideas. Currently, many email clients are slow to incorporate video within email.
I use the html5 video tag to incorporate video in email . It tries 3 video formats to see if they're supported by the email client: .mp4, .ogv & .webm (hotmail, opera, apple mail i.e. iphones, ipads etc) which I upload to my server prior. The cool thing is, if the video is supported, I have it set to autoplay when the person opens the email.
Unfortunately gmail, outlook, yahoo etc do not support html5 as of yet (correct me if I'm wrong, but my tests have shown they don't).
If the email client happens to fail on the html5 video tag, I have set a fallback to a poster image of the video which I link to the youtube version of the video.
Through split testing in GetResponse, I have found a 90% higher click through rate on the video poster image than a simple url link equivalent.
People are far more likely to watch a five minute video than read through 3 pages of sales script.
Here's an example of a GetResponse email I put together. Give it a second, the fallback poster will display first but the video should autoplay after a few seconds as it's running in a browser, not an email client: GetResponse Email Example
I would love to hear if any of you have any experience with video email marketing or any insight you would like to share. I feel video marketing has the potential to be very powerful if used effectively.
Hope to hear from some of you,