Most marketing managers understand that video needs to be a part of their marketing plan. But with tight budgets and demanding schedules, it’s not always easy to convince upper management of the importance of video. You can trot out the statistics: 64% of people are more likely to make a purchase after they’ve watched a video. You can argue that the competition is doing it. You can present examples of marketing videos for even the most unlikely of industries. But eventually it all comes down to the bottom line: return on investment.
One of the great things about video is it lends itself to measurement in ways that static ads and text content doesn’t. You can collect engagement data and track attention span to determine what’s working and what’s not. Not only can you learn what leads to engagement in terms of content, but you can also collect useful information about how your video is presented. Content Marketing Institute explains how they discovered that a steep drop-off in engagement within the first few seconds of a video was actually because the video was set to auto-play on their home page. When people first arrive on the website, they are likely looking for specific information and aren’t ready to watch a video. Turning off auto-play increased viewer attention span.
The takeaway here is that you need to consider all aspects of your video marketing campaign, not just the obvious or traditional metrics. The same is true for measuring video marketing ROI. It starts with determining your campaign costs. For example, if you decide to go the do-it-yourself route, your budget will need to include a buffer of at least 20% of your projected expenses. If you DIY, you are likely to run into unexpected expenses such as having to re-shoot footage or investing more in editing. (Social Media Examiner) You need to determine how much additional revenue you expect from your video campaign and consider whether investing more in your video will result in increased sales. There are lots of tools available for determining which of your sales can be tied directly to your video campaign.
Back to the bottom line: Is it worth it to invest in video marketing? It is if it works! If you produce an inexpensive video in-house and you get great results, that’s a good investment. On the other hand, if your inexpensive video is not engaging and doesn’t result in increased sales, it’s not a good use of resources. Video does work, and there’s plenty of ROI statistics to prove it, but as with any marketing strategy, your campaign must be carefully planned, with an understanding of who you are targeting and the specific result you’re seeking to achieve. Then you must wisely invest your resources to achieve that result.
Call us today and let’s talk about how we can help you achieve better ROI for your marketing budget.