Return on investment, or ROI, is a common way of measuring the success of a marketing campaign. Many executives in the c-suite connect with these metrics when formed with quantitative figures, which is why knowing how to measure it is essential in getting funding and support for current and future projects.
Capsule’s team has years of experience working with clients and their wider companies, connecting with executives about the benefits and drawbacks of measuring success through solely quantitative ROI. Our guide will help you understand what ROI means, the best ways to measure it, and how to improve that figure.
Why is it important to measure the ROI of video?
ROI is important in all sorts of marketing to understand how successful a campaign was. You can find out valuable information about what messages and imagery work for your audience and set a benchmark for future projects. Firstly, you can understand the true impact of your video in many different metrics such as views, shares, average watch time, viewer response and much, much more.
Knowing how to manage those metrics properly means that you’ll be able to see what type of videos your audience like best and where they want to watch them. It’ll help you form a framework for future projects, boost your sales funnel, adjust your marketing for the best growth, and set realistic, motivating goals.
Which Attribution Modelling Are You Using?
Are you tracking the results of the video as part of a wider campaign so the results will be partially attributed to the video, or are you using the video as a standalone investment, and all the results are directly attributed to the video?
Attribution Modelling will allow you to measure ROI correctly. You need to decide what exactly you’d like to track, whether it’s a whole campaign or just the video as a standalone investment. Take note of the pathways your client takes. Is your video the only driver to the endpoint? If not, you’ll need to keep that in mind.
Using the right attribution model by mapping your user’s journey will allow you to measure the value of different interactions so that you can allocate the budget accordingly. You can use single-touch or multi-touch models, depending on how many times a ‘high-value interaction happens in your user journey. If you’re producing video content on a tight budget, knowing how and when your audience best interacts with your content and how to attribute that success is even more important.
Key Metrics to consider
Choosing the right metric for measuring ROI and working out customer pathways is one of the most important decisions you’ll make. We’ve explained what each quantitative and qualitative metric available to you can do.
Quantitative Metrics
- View count – available to see on many social media platforms and video hosting sites such as Vimeo and YouTube. This shows you how many people opened and played your video.
- Avg. watch time – This metric is important because it can tell you about how engaging your video is, and how long your audience wants to watch a video for.
- Conversion rate – Important for attribution modelling, this shows you how many customers follow your CTA (if it drives them to a website)
- Conversions/leads generated from it – This goes further than conversion rate, and measures lead conversion too. It’s key if your video is designed as part of a specific campaign.
Qualitative Metrics
- Brand Sentiment– Also known as ‘social listening’, this tracks what the user thinks of your brand, and what sentiment they hold toward it. This can be tracked through tools like Awario who provide social listening services.
- Product/service education – This measures how well people understand your products and services, which is especially useful for explainer videos. This is trackable through word-of-mouth and feedback from your support teams on how many people need support for your products.
How To Improve Video ROI?
There are a few ways to boost your ROI and reach new and existing targets. Immediately, you can use effective call-to-action statements which drive video users to a certain end-point. This isn’t the only option, though. You can:
- Add product videos to product pages and monitor sales.
- Use keyword research to optimise your video titles.
- Repurpose your video content into smaller snippets for social media posting.
- Create transcripts to increase its accessibility.
All of these measures (and more) mean that social and search engine algorithms will value your content over less optimised content. Talk to one of our expert team today, so we can collaborate on a campaign which I’ll be much more valuable than the leads and conversions that are generated. Click here to find out more about Capsule video production services.
