5 Steps Guide For Measuring The ROI Of Video Marketing

Today, video marketing is one of the most sought-after forms of advertising. Videos are an easy way to connect with your local or international consumers. However, just because videos are easier it does not mean that they bring you the required profit. It all comes down to ROI. As a business owner you must determine if you will get a return on investment (ROI) by using videos. If you are not getting any returns then you are simply wasting your resources. In order to determine if you are getting any returns you need to measure your video marketing ROI.

  

Consider the following steps for measuring your video marketing ROI:

  

1. Set Realistic Objectives

What actions do you want people to take after viewing your video? Always have a clear understanding of your overall objectives before launching any form of campaign, video or otherwise. Having an objective is the most important point of executing a successful campaign.

   

Note that different businesses have different objectives and you will need to evaluate your goals for every campaign you launch. For instance, you can launch a campaign this month to drive sales for a new product launch and then launch an informational campaign that educates and builds brand strength the following month.

   

However, if you do not identify your goals you will not be able to measure your success. Ultimately, video campaigns serve as just one piece in your conversion funnel. You are probably using videos as a small step in a larger strategy. A true understanding of performance and ROI begins by knowing what to measure.

 

2. Determine Your Measurement Model

You can measure your video campaign ROI using one of three models. Each of these models has its own intricacies requiring various levels of depth. The models include:

  

Absolute ROI

Use absolute measurement when your video marketing campaign stands on its own. This way you will get an insight into the video’s performance independent of other media. This model will help you track metrics like

• Cost per subscriber
• Cost per purchase
• Cost per download

This type of model focuses on your video marketing campaign’s performance as compared to other Medias. For instance, the success of a YouTube campaign compared to the TV ads you run on a regular basis. This type of measurement is a bit complicated but using it will provide a deeper insight into where and how to allocate your budget in the future.

 

Attribution Modeling

This is one of the best models of ROI measuring. But it is also one of the most complicated models in analytics. Basically, the model involves measuring the impact of your video on every individual marketing channel you use as well as every stage of your buying funnel.

   

3. Understand The Distribution Methods

You should know how and where you will distribute your video before spending time and money creating one. This will help you make other decisions in ROI measurement such as how to analyze success across multiple channels. There are various places to share your video online. However, the challenge is trying to track and measure each place you distribute.

If you are starting out you can focus on:

• Your business’s YouTube channel
• Your social network profiles
• Your email newsletter
• A page on your website (a campaign-specific landing page)

Your overall marketing campaign objectives and target metrics should ultimately drive your choice of an analytics system. The market has various tools that can help you evaluate the interaction of your audience with your video and allow you to examine things like:

• How many people watch your videos to the very end
• At what point do people stop watching your video
• Your viewers demographics
• The number of times the video gets shared

These aspects provide an insight that you can use to plan future campaign developments based on your current success. Note that you can measure ROI through social interactions, downloads, shares, new followers, engagement from target demographic and other metrics.

   

5. Consult

Find someone to help you in the measurement process once you establish the metrics that you need to track and how to track them. This makes your measuring process much easier. Sometimes working with a qualified professional can help make complicated analytics simpler. In addition, you can always consult with your video production team on a regular basis. Reviewing the analytics may help you uncover changes and adjustments that you need to make during the campaign.

   

Conclusion

The first thing you need to do is determining your goal for your marketing video. Then you can determine how you are going to measure if you have successfully met your goals. If not, identify opportunities for improvement, rinse and repeat.