In addition to guest posting on the UpCity blog, Lemonlight is featured as one of the Top Video Production Companies in the United States. Check out their profile here.
By now, you already know investing in video marketing for your company is incredibly valuable and an important step toward growing awareness for your brand, strengthening your online presence, reaching new audiences, and converting more traffic into customers. A majority of the industry already knows it — according to a poll conducted by Syndacast, 52 percent of marketers believe video production provides the best return on investment (ROI) when compared to other types of digital content marketing.
More impressive, viewers spend 100 percent more time on web pages that include videos, and four times as many customers would rather watch a video about a product than read about it. The data doesn’t lie; video production is incredibly powerful for your business. But how do you know if your video marketing is working?
The key to accurately evaluating the success of your video marketing is being able to properly calculate its ROI. This doesn’t just mean counting how many views your video gets; calculating the ROI of your video marketing efforts involves figuring out the right metrics to track. Setting up the proper key performance indicators to achieve your specific video marketing goals first and foremost is paramount to being able to properly track your video’s success.
Step 1: Defining the Specific Goal of Your Video Marketing Efforts
The very first step in calculating your video’s ROI is defining what goal you’re trying to achieve with your video marketing. From there, you can define the right key performance indicator (KPI) to track how well your video is performing.
Some common goals most businesses try to achieve using video marketing include:
- Attract: You want to attract new customers and build better brand awareness, leaving new customers with a positive impression of your company.
- Engage: You want to keep customers engaged with the content on your site so they provide you with their information.
- Nurture: You want to nurture leads and increase the number of prospective customers buying your product over time.
- Delight: You want to educate customers on how to use your product more effectively and make them feel included and part of a community.
Step 2: Creating the Right Type of Video Content to Achieve your Goal
After identifying a primary goal for your video content, you then need to create your video. The video content you create can vary greatly in style and format, so you need to make sure you’re creating the right type of video to help you achieve your goal.
We’ve copiously researched and tested what type of videos are best for each type of business goal, and the great news is that there’s plenty of options to choose from. Ultimately, what video types that perform the best for you will depend entirely on what your audience of prospective customers reacts the strongest to.
Here’s a short list of video types you can make for each of your desired goals:
Primary Goal: Attract New Customers
- Industry Video
- Educational Video
- Before and After Video
- Product/Service Video
Primary Goal: Engage Your Visitors
- Brand Video
- Day in the Life Video
- Crowdfunding Video
- Before and After Video
Primary Goal: Nurture Your Prospects
- Social Content Video
- Product Review
- Customer Spotlight
- FAQ Video
- Event Video
Primary Goal: Delight Your Customers
- Welcome Video
- Thank you Video
- Tutorial Video
- Tips and Tricks Video
- Referral Video
Each video type has a unique style and format — check out this blog post to learn more about every individual type and whether or not it’s right for you.
Step 3: Picking the Key Performance Indicator to Achieve Your Goals
Now, you can narrow in on the right KPI to track your video’s success and ROI. If you’re looking to attract new customers, measure click-through rate (CTR) instead of just video views. Video views are the least reliable metric for tracking a video’s success. A video might have millions of views, but viewership always drops after the first 10 seconds and the video might be converting at less than one percent.
Some common KPIs you can use to track against your primary goal include:
- Click-through rate
- Views (least reliable)
Beyond these common goals, think outside of the box and hone in on more unique KPIs, like these:
- SEO Ranking
- New leads
- Social Engagement (comments, likes, etc.)
If your goal is social interactions on a specific social platform, for example, you will need to measure the engagement on that specific platform. Usually, this engagement will tend to bottom out after 72 hours, but will continue to grow over time from there.
For the best results, make multiple videos and make sure that you compare your KPIs across all of your videos by comparing the individual results video by video. Maybe one video is doing really well because of some element that isn’t in the rest of your videos. Or two videos may be performing better than another because their video format resonates better with your core audience.
Here’s a helpful graphic for determining which KPI to track for your individual goal.
Step 4: Picking the Right Analytics Measurement Tool
Once you’ve defined how you’re going to measure your ROI, you can then choose a measuring tool to help you collect and analyze your data.
Things you’ll want to make sure your platform measures include how many people are actually watching your video to the very end, at what point your viewers stop watching your video, and what your viewer demographics are.
Here are some popular tools to choose from for measuring your video marketing analytics.
Popular Paid Analytics Tools:
Popular Built-In Analytics Tools:
Some analytics measuring tools are provided by your video hosting platform, like when you host your video on YouTube or promote your video on Facebook. This data is handy and readily available, as long as you know how to interpret it. For videos you host on your homepage, you can use Google Analytics as a free tool to track how well your video is performing and use a tracking pixel to determine when a web visitor actually makes a purchase.
Step 5: Picking the Right Distribution Channels
Now, in order to properly track and calculate your video’s ROI, you need to make sure you distribute your video to the right places in order to maximize your reach.
There are plenty of places you can post your video once it’s done, but there are four key distribution channels you don’t want to ignore.
- Owned social pages: No matter your primary goal or specific KPI, post and share your video content across all of your relevant social channels to maximize your video’s reach and put your call to action to the test.
- Email marketing funnel: Share your video content in your email marketing efforts at multiple touch points, including linking your videos in your sales funnels, promoting your videos in your newsletters, and sharing your videos in your marketing emails to nurture prospective leads into becoming customers.
- Company homepage: Host your video on your homepage to help achieve better web visitor engagement, higher SEO placement, and stronger sales conversions.
- Paid advertising channels: For maximum impact, allocate an ad-spend for your video so you can target your current customers, new lookalike audiences, or retarget previous web traffic to your homepage with your video content.
Take advantage of these four main distribution channels, as each has its own unique value proposition.
Step 6: Testing and Updating Your Content for the Best ROI
A lot of data tracking might come second nature to you by now, since you’ve probably been tracking all kinds of data from your other traffic sources. However, you can work with a data analyst (or become one!) in order to better analyze and test the data you track.
This is where tracking your key performance indicator across all your video marketing efforts video by video becomes incredibly important. By reviewing your video marketing master metrics, you’ll see where your video marketing can improve, where you need to make adjustments, or where you need to lean in to certain video practices or formats.
Once you or your data analyst team have enough data to make the proper comparisons and adjustments, start altering your content to improve and increase your video’s ROI. If your primary goal is to attract new customers, you can increase your click throughs by using a stronger call to action. If your goal is to engage more with web visitors, you can create a more compelling type of video that captures your prospective lead’s attention in a faster, more emotionally driven way.
Remember, the only way to properly calculate your ROI is by tracking your KPIs against your primary goal. Don’t try to track too many things at once, or you’ll become overwhelmed — you won’t know what is and isn’t working and your results will be influenced by too many factors. Focus instead on a few KPIs and make meaningful changes that’ll move your company forward.