Measuring the ROI of Video Marketing
Measuring the Return On Investment (ROI) of your video marketing campaign may be easier than you thought. An accurate ROI is incredibly important to businesses of all sizes, as it allows you to present the benefits of your chosen strategy thanks to quantifiable data. There are a lot of options that you can and should spend your budget on when it comes to marketing, but knowing that the areas you choose are giving you the desired results is absolutely critical.
The first thing you need to be able to measure ROI is a sale. You need to work out what you have done to earn that sale, how much time and money you spent on engineering that activity, and then compare that to the value of the transaction. Simple? In some respects, yes – it’s quite methodical. The tricky part is step two – judging what is was, exactly, that you did...
Spending on video has already increased massively in 2015, exactly as it was predicted to, but does this increase in popularity and budget necessarily reflect value for your business? Major corporations will have set aside millions over the coming months and years to put towards fresh video content. Surely they are able to track the financial gain of doing so?
For an email marketing campaign, it’s easy enough. Having distributed a newsletter to your subscribers, you are then able to generate reports based on successful delivery, open rate, the most commonly clicked link and track which subscriber was most active. From this, a picture is formed of the success of your email. Thankfully, the technology for measuring video statistics has finally caught up.
During the early onset of video, it was view count that was used to measure success. Yes, a good indicator of a video’s impact, but does that really give you any idea on what financial return you are getting? The answer was no, which is why additions have been made to Customer Relationship Management (CRM) systems to revolutionise the way that video data is recorded.
Measuring ROI may seem relatively simple, but as we have already mentioned, it’s step two that takes some work. But by integrating your video into a compatible CRM system, you’re given access to data that includes:
- Which contacts or leads have viewed your video?
- How many views have you received in each month, and who from?
- How long into a video have you maintained engagement?
- Which video is performing best?
What you’re collecting through a CRM is individual viewer data, working out which completed sales are associated with contact views. This can then help you to put together a CPC (Cost Per Conversion) figure and work out precisely how much you have spent on acquiring that sale with the help of your video content. At PureMotion, we use this data to affect and adapt future projects with our clients, making sure that the videos we produce take into account trends and are tailored to meet what the data is telling us. Sometimes that’s simple, other times it takes a little more creative thinking. Either way, we are always happy tinkering to get the perfect balance.
The end of 2014 saw video help increase website conversion rates by more than 65%. This is an impressive statistic. With the latest CRM technology, we can now tell you exactly what that can mean in terms of pounds and pence, too. And that is invaluable. Contact us today to find out more.