One of the biggest questions we get about video marketing campaigns from our audience is, “What return on investment (ROI) can we expect for the money we’re spending?” I completely relate to this question, because at the end of the day, what you invest in your marketing strategies, should work… plain and simple!
Now, while marketing is not an exact science, it is getting better, especially now that we’re able to compare side by side which marketing mediums are the most effective. Today, this data is so extensive, making it easier to determine how to structure your marketing for the very best bang for your buck.
According to eMarketer, a leading digital marketing research company, video marketing offers one of the best ways to maximize return on investment (ROI). “Video increases conversion rates, encourages sharing, and creates a more engaging experience for the consumer.” (PreviewNetworks)
If video is not included in your strategy, you’re leaving money on the table!
But how can you determine the ROI on video marketing? There are a number of ways that you can measure the success of online videos and these will depend on your goals. But we like to simplify the calculation by thinking in terms of breaking even.
The reason? Because one of the great things about video is that after you break even, your video continues to work hard for you to generate more sales, creating an infinite return on your investment.
Here’s how: Ask yourself, in order to break even on the investment in a video, how many customers or new sales will you need to generate? For example, if a new relationship is worth $10,000 and your video cost is $10,000, you only need one customer to break even! Additional sales you receive based on the video is an infinite return.
Long after your video has been produced and you have made back your initial investment, you can continue to use it as part of your marketing strategy. There are some videos produced 2 years ago that are still driving traffic and generating sales today!
If this makes sense to you and sounds like a good way to leverage your marketing budget, let’s talk! Feel free to contact us at 215-525-4561 or email: firstname.lastname@example.org