24 Jul Measuring the ROI of Video Marketing: What Metrics to Track
Are you investing in video marketing but need to know if it’s paying off? Measuring the ROI of your video marketing efforts is essential to understanding the impact it has on your business. But with so many metrics to track, it can be overwhelming to determine which ones are most important.
In this article, we’ll discuss the metrics to track when measuring the return on investment of video marketing.
Establishing clear goals is crucial before tracking the success of your video marketing efforts. Your goals should be specific, measurable, and aligned with your overall business objectives.
Keeping your goals simple is crucial, a common mistake businesses make with video is that they try to do too much with one video. For instance, here is a good example of “too much”; imagine a social media video for a cake shop. The video contains an overview of all the cakes the shop sells, an interview with the owner, the history of the business, the locations they serve, the hours they keep, the type of events they run and all of the other services they offer i.e. delivery, birthdays, classes etc.
As you can imagine all of this information sounds somewhat overwhelming (especially when presented in a 60-120-second video!).
To simplify this, we would recommend focusing on one goal, in this example let’s say their goal is to get more people into the shop. In this instance, they have a new twist on a popular product. We would recommend creating a short social media video focusing solely on this product. It speaks directly to its customers, tempting them into the shop.
No doubt you have a local cafe/bakery doing this exact thing on your social media feed, and no doubt they’ve posted a similar piece of content today that has made you think about visiting because of said thing.
Tracking the ROI on this example would be measured by footfall data and the sale data in relation to the campaign.
Your overall video marketing campaign can target multiple KPIs, however, we always recommend keeping it simple and assigning one specific goal to each video.
Take a look at this case study for Greenfeathers as an example. We produced a collection of “how to set up” videos with the sole objective of decreasing their inbound support calls. The content was focused entirely on the technical support aspect, resulting in a 30% reduction in inbound support calls. This freed up their staff to handle more challenging issues. In another campaign, we created an advertisement with the exclusive aim of selling a specific product. This produced an ROI of £10 for every £1 spent. In short, simplifying your goals leads to quantifiable outcomes.
There are three main categories of metrics to track for video marketing: views and engagement metrics, conversion metrics, and brand awareness metrics.
Views and engagement metrics include the number of views, watch time, likes, comments, and shares. These metrics provide insight into how many people are watching your videos, how long they’re watching for, and how engaged they are with your content. This is great for brand awareness, educational and help-type campaigns.
Conversion metrics include the number of click-throughs to landing pages, purchases, and sign-ups/enquiries. These metrics indicate how effective your video content is at driving your audience to perform a set action, such as purchase, sign up or get in touch.
Brand awareness metrics include reach and impressions, as well as social media metrics such as followers and mentions. These metrics provide insight into how many people are seeing your videos and interacting with them.
In simple terms, ROI in video marketing is calculated by subtracting the cost of producing and promoting your videos from the revenue generated by your videos. ROI can also be measured by impact as well, for instance, this case study for CPA produced a noticeable increase in inbound calls. Our YouTube work for Greenfeathers reduced their inbound support calls by 30%. You will measure ROI based on the goals you set out to achieve at the start.
By keeping a close eye on your video metrics, it can help you identify areas for improvement, for instance, in a sales-driven ad you may notice that a certain demographic is interacting more and would thus tweak the ad audience to focus on that group.
To get the most out of your video marketing efforts, it’s important to track your metrics regularly, set benchmarks for improvement, and integrate video marketing metrics within your overall marketing strategy.
To summarise, when making video content always set clear and simple goals. Whether that be brand awareness, sales, leads or helping your audience, by setting clear goals, tracking the right metrics, and analysing your data regularly, you can make informed decisions and improve the ROI of your video marketing.
At Clear as Day Productions, we’re passionate about what we do. If you’re looking to boost your video marketing performance, get in touch with us today to find out how we can help.