At this point in the online marketing timeline we think it’s safe to say that having online video as part of a company’s marketing efforts is finally universally accepted. It is just the most effective way to deliver a message, have it be seen and then have it be shared with others.
Measuring online video Return On Investment (ROI) begins with understanding what the videos set out to accomplish. At Sircle we always preach that “Social Media” is just a new term for the internet as a whole. Social networks afford businesses and individuals a vehicle to easily share information and can help the word spread very quickly on any relevant content. The delivery mechanism that packs the biggest punch is video, making it such an attractive product for most. The problem is that you must make sure that the content in that video is compelling and easy to understand.
Video is a tool that can be used by various departments within a business. 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 by department can be tricky making true video ROI a tough one to map out. Ask yourself:
How many more prospects did our sales reps speak with today/this week/this month because they had a video to help explain your product more succinctly?
How many customer service issues were resolved with greater ease based on your video that explained how to use, setup or fix a product?
How many new hires were we able to recruit based on our company position video?
From a true marketing standpoint, it is not much different than a traditional marketing campaign. Comscore reports that on average a person watches 14.8 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 most 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 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 is 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 the pay per click model and the received traffic you can use the following:
Running banner 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.
To conclude, 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. However, 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.