VIDEO ROI: GUIDE TO MEASURING YOUR VIDEO PERFORMANCEadmin
When it comes to measuring the return on investment — or ROI — of videos, there are a few things to keep in mind. So in this article, we’ll cover everything you need to measure the success of your video investment. ROI is a performance metric that calculates profitability. In sales, marketing and related functions, this is often a ratio of how much you spent on a campaign versus how much revenue your business gained from it. Measuring the ROI of video is valuable as it helps you identify successful tactics, which can then inform future strategy and execution, as well as where to deprioritise spend. A heads up: analytics tracking setup prior to kicking off your video efforts is key, as you’ll want a baseline to compare results to during and after any activity.
How to calculate ROI for videos
It’s mathematics time! Thankfully, calculating ROI isn’t rocket science — all you need to know is how much your video/s cost to make, and how much revenue your company gained as a result. Here’s the basic formula: The trick to this equation is attributing ‘gain’ and ‘cost’. If you’ve fully outsourced video production, then totalling your cost is easy. If you’ve created your content in-house, however, you’ll need a figure (or average figure) for how much an individual’s (or team’s) time costs in your currency, then multiply that by how many hours were involved to get your cost. It’s a similar story for gain. If the content goal you’re measuring is sales e.g. e-commerce, then accessing these numbers should be simple. However, if you’re measuring lead generation, or associated brick-and-mortar sales, then you’ll need to ensure a value is attributed for your average lead, or offline tracking is in place for in-store sales. Here are some common examples of video gains and costs below:
- Brand awareness
- Customers or Donors
- Sales revenue or Contributions
- Internal resources
- Partially outsourced video production
- Fully outsourced video production
- Paid advertising
6 ways to improve your video ROI?
1. Define your objective
Your ‘gains’ objective will be a result of your business and content goals e.g. revenue from sales, using personalised videos for prospective customers. Depending on whether you’re in B2B or B2C, your ‘gain’ metric may be leads or sales; but either way, outlining your video objective will inform the content you create, as well as how to measure its success.
It also helps to think about your prospect’s sales funnel stage in their buying journey. For example, if your video is for cold outreach, you’ll want to hook attention quickly, and ensure you introduce yourself, your company and product, and how it can help your prospect. Here, additional video metrics like percentage watched can be useful to see where people drop off, so you can adjust your script accordingly for better ROI.
2. Define your target audience
Knowing who you need to communicate with is key to creating effective video content. No matter how much time and effort you put into a video, if it’s not hitting home with your viewer/s as relevant, helpful information, you’ll never see results. So think about who’ll be viewing your video, and what they’ll want to get out of it.
3. Plan for distribution (and promotion)
Following on from #2 above, once you’ve created your video content, don’t just ‘spray and pray’. Get strategic and ensure you know where your audience lives online, so you can prioritise those channels when publishing your video. If possible, think about key words or phrases that’ll help flag your content is for them; short and sweet is good general advice for posts.
4. Use calls-to-action (CTAs)
Your audience needs to come away knowing what to do after watching your video, as guided by you; this is your call to action.
For your audience to follow this direction, make sure you outline next steps at the end of your video, as well as how they can get in touch with you — making it both clear and easy for your viewer/s to take action.
5. Measure your results
This analytics data can be invaluable in terms of simple KPIs like reach, views, audience engagement and conversion rates. In case of a donation or contribution campaign, the number of new donors, amount of money raised as well as website visits can be great indicators of a successful video investment.
6. Repurpose your video content
Lastly, the biggest tip we can give you is: save yourself time and effort by recycling your videos. Think about where you can repurpose content you already have in the archive. Instead of booking a whole new shoot, simply hire an editor to re-work the message to suit your current goals and produce fresh content to connect with your audience.