Measuring Return On Investment (ROI) of your video efforts begins with understanding what the videos set out to accomplish. If you go into the process knowing that video is more likely to be consumed than other forms of content it can change your POV a bit and better shape the conversation.
Video, is a tool that can be used by various departments within a business to help “market” their message. Sales, HR, Customer Service and Marketing all can benefit from the positive attributes of a well-positioned video message to tell their story. Attributing a direct ROI to video and breaking that down by the department can be tricky, making true video ROI a tough one to map out.
Let’s say you have a PowerPoint presentation that your salespeople use in pitches and/or in their email or LinkedIn solicitations for new business, how would video perform instead? Assuming you have a great product, with compelling unique selling propositions (USPs) clearly laid out in this presentation, perhaps a video format would produce higher consumption rates? It is a big commitment to sit and read through a long sales deck, but an animated video that brings the hot buttons to life might be worth 60-90 seconds of the end consumer’s day. If you can increase consumption rates, then you increase your sales conversion potential, which directly impacts the ROI of your sales team’s efforts.
When putting out any social media content, the major platforms (READ: Instagram and Facebook) will reward your video content over still images. So if you are measuring the performance (reach, engagement etc.) of your content, especially your paid efforts, then a video is going to deliver you more for your dollar, also known as a better return on your investment.
From a true marketing standpoint, it is not much different from a traditional marketing campaign. Comscore reports that on average a person watches north of 25 hours of online video a month, so it’s not the matter of trying to prove that online video marketing is effective. The Executives at every business, however, want to know that the marketing dollars are achieving the highest value and ROI while receiving the desired results.
So how do you measure ROI of online video?
- Know your objectives.
The essential component of executing a campaign successfully is having clear goals. The simplest way to measure return on what you’re investing is knowing your target audience and what message you are trying to deliver. Your objectives may vary. For example, if you’re trying to promote product sampling, your objective may be to have individuals register for a coupon on your website after viewing the video. If you want to increase exposure and awareness of your brand or business, you might be simply looking at views to measure the total exposure of the campaign. Dividing cost, by views can give you a cost-per-view metric. Know what you want to see happen before you start.
- Social = Sharing = Exposure.
Remember, ROI doesn’t necessarily have to equal a dollar figure. It can be social interactions, shares, conversations around your brand and recommendations by your brand ambassadors. If your video is getting shared by your target demographic and this audience is recommending your video to their friends, the reach and engagement are just as valuable as a dollar figure. Make sure you give them the opportunity to easily share your video!
- Don’t be afraid to get creative.
Measuring online video ROI isn’t always an exact science and with a non-traditional platform, you have room to come up with creative and different ways to validate your efforts. Online video can often drive traffic back to your website and one way is to look at what that traffic would have cost if it had been acquired by a push advertisement.
For example, comparing a pay per click model and the received traffic you can use the following:
Running ads on a website with $3 per click which results in 300 unique visitors to your website. This traffic of 300 people to your website is then worth $900. Although this approach offers an easy dollar figure, it’s crucial to note that the difference in pay per click banner ad traffic and organic post video engagement differs greatly and the value through organic engagement is much higher.
Online video enhances and creates the most engaging online user experiences. When it comes to ROI, the measurement metrics differ greatly depending on the specific goals. Success lies in the ability to target a specific audience based on demographic, geographic and contextual parameters. Being able to speak the language of your target audience and deliver a strategic message in a simplified format is a sure fire way to increase business. So grab your camera, and let’s do this…