Measuring Video Marketing ROI

When launching a video marketing campaign, monitoring your key performance indicators (KPIs) is essential. However, how do these KPIs relate to your return on investment (ROI)? How can you know if your video marketing campaigns are yielding substantial returns?

Content marketing is distinctive in its difficulty in demonstrating value. Even if you construct the perfect video and a million people view it, it may not result in sales. Do you consider that a success? Ultimately, it depends on your objectives.

Before creating a video, you should devise a strategy that specifies how success will be measured. Tracking your visitors throughout the buyer’s journey, from the moment they discover your brand to purchase your product, is the key to determining whether your video is booming.

However, tracking conversions from a video can be challenging if your video contains a direct call to action with an appropriate tracking link. Due to the presence of other marketing campaigns and the altering character of the marketing funnel, it is becoming increasingly difficult to determine precisely which factor converts a customer. Fortunately, this post has some suggestions to help you choose the ROI of your video.


What Is ROI?

When referring to financial investments, the acronym ROI is commonly used. It is a handy metric for contrasting the ROI of various marketing strategies. You may gauge the success of your video’s inclusion in the marketing campaign by looking at its return on investment (ROI).

Moreover, when you calculate video marketing ROI it helps you zero in on problem spots for future campaigns to fix.

All of this information is gleaned through the monitoring and analysis of the metrics you establish. The success of your campaign can be gauged by determining the return on investment. Research assures us that taking the time to measure our progress will be well worth it.  After reading all that info, you should start making videos right away.

If this describes you, realise there is a significant gulf between merely considering video marketing and mastering the medium. Despite the widespread interest in using video in marketing, you should not count on specific results if you choose this approach. However, tracking its return on investment can increase your success rate.

What Is Annualized ROI?

Annualised ROI is the average annual return on an investment over a given period. This demonstrates the venture’s overall profitability. Annualised ROI of video can assist in analysing and comparing the performance of an investment over specific time intervals.

Why Does Video Marketing ROI Matter?

Marketers can determine whether their campaign was successful by establishing a baseline of return on investment criteria. Marketing return on investment analysis also aids in developing campaigns that are in perfect harmony with those objectives.

Data-driven teams can also use video marketing data to make content more relevant to their audiences. Images, emails, blogs, and eBooks are examples of traditional marketing assets, but they only provide insight into whether or not they were viewed.

However, there is much more information to process when dealing with compelling videos. You can see how many clients have accessed the video, how many had watched it more than once, when most people stopped viewing it, what percentage of the movie was watched, and much more. The data from the CRM team can be compared with the leveraging video marketing team’s data to find out the following:

  • A look at the impact that video views have on business negotiations.
  • Find out which videos have been seen by potential customers.
  • How many leads or purchases were prompted by each video?
  • Find out how often a video was viewed in a month, quarter, or year.

This way, you may produce more content, like videos, that turns prospects into paying clients. As a result gaining a favourable proven track record. If you are keen on the video marketing ROI formula, you can determine which content will impact your bottom line most. When you come across videos that significantly outperform your expectations, you should produce more like them.

How To Measure Video Marketing ROI

Establish Lucid Goals And Objectives

Determining the campaign’s intended outcomes is the first step in calculating the return on investment for a video campaign. One possible objective is to boost brand recognition, attract potential customers, and ultimately boost revenue. The campaign’s performance can be measured in various ways, but these relevant metrics should be tailored to each target.

Ask yourself what you aim to accomplish with the live stream, promotional video, or movie before you do any planning. Outlining your goals for the video campaign can help you calculate its return on investment.

These objectives concern what viewers should do immediately following the video or at a later time. Although you likely have many objectives in mind, they can be summed up as follows for a video campaign:

  • Increasing product recognition: Is one goal of the campaign to introduce the brand to potential customers? Do you intend to let potential customers know what your business offers?
  • Creating a Profit: Is the campaign’s goal to increase sales of the brand’s products? Do you want more people to buy or show interest in your offer?
  • Enhanced focus on customers: Is the purpose of the video to inform viewers about your offerings? Do you want to educate your present clientele on how to get the most out of your offerings?

A video marketing campaign can have more than one objective. For instance, you might expect the same movie to serve many purposes (such as teaching and making money). To accurately gauge the campaign’s success, it is necessary to determine which of the two is more crucial.

Pick Appropriate Metrics

Did you know that metrics like comments, likes, and downloads can be used to calculate return on investment? The success or failure of current strategies can be gauged in part by looking at these indicators.

When measuring the performance of a video marketing campaign, marketers frequently focus on only a few hands. Popular metrics for evaluating the success of video content include the number of impressions, shares, and views.

This is mainly because many hosting providers provide free analytics tools. While these metrics can help you gauge a video’s impact on brand awareness on social media, they will only tell you a little about whether or not a video on your landing page increased conversions.

How often the video is viewed will say to us a little. That indicates the video’s interest level; it does not mention its impact on conversions. You need to know how well the page did before introducing the video to evaluate how well it does now that it is there.

Metrics should be chosen so that they are pertinent to the goals and objectives that have been established. Metrics like click-through rates, conversion rates, and income earned may be more relevant if the goal is to generate leads or drive sales.

Top Metrics For Video ROI

  • Lead Generation: Attracting new consumers, piquing their interest in your products or services, and generating more qualified leads are all a breeze with the appropriate video content. To increase the effectiveness of your video marketing approach, integrate account-based marketing (ABM). Lead generation videos can take several forms, including testimonies, brief sales pitches, and product demonstrations. When making videos, you must ensure the content is interesting enough to draw in viewers. In addition, the film should feature a call to action that encourages viewers to visit your website for further details. Click-through rate (CTR) is the most critical indicator for generating leads.  Total views divided by the total number of persons that clicked on the video equals the click-through rate (CTR) or the view rate. A high CTR does not necessarily indicate a high-quality video; instead, it shows how compelling your video’s title, CTA, and thumbnail are. If your click-through rate is lower than usual, consider tinkering with these elements and seeing what happens.
  • Engagement: Actions taken within the video, the video’s total reach, and the video’s estimated view time are all engagement indicators.
  • The action was taken: It is when viewers engage with your video somehow, whether through liking, commenting, or sharing.
  • Reach: Using this data; you can determine how many individuals watched the video, even if only for a fraction of a second.
  • Watch time: The sum of time all viewers saw your video. Keeping an eye on this measure can provide insight into your videos’ reception. However, it is vital to remember that monetary success is not everything in the video industry. Using videos, you can strengthen your rapport with existing clients and attract new ones. Customers are more likely to return to your store after interacting with your brand’s content. Therefore, engagement is crucial for calculating the overall return on investment in video marketing.
  • Revenue: Nothing beats cold, hard cash as proof of return on investment. Revenue is one of the most critical indicators for gauging a video marketing campaign’s success. Still, revenue is one of the trickiest variables to monitor regarding video advertising. It is impossible to tell if a viewer converted into a buyer after watching your video.  Determining a video’s conversion rate is the most accurate estimate of the final profit. A video’s effectiveness in generating leads or sales is measured by its conversion rate. Directly calculating it is as simple as dividing the number of qualified leads by the number of distinct video watchers.
  • View count: Track how many people are watching your video. You may get an idea of exposure and participation from this metric.
  • Conversion rate: This is the percentage of viewers who perform the intended action after watching the video and is an important metric to monitor if you want to increase sales or leads.

Select A Return On Investment Model

It is time to calculate the ROI now that you understand the significance of setting goals and identifying the metrics you need to monitor. Your video marketing return on investment can be calculated using one of three models. All of which are intricate and deep in their unique ways.

  • Absolute Return On Investment: Use this method for campaigns independent of your other promotional activities. Modifying this framework may teach you how well the video is doing. The cost per subscriber, purchase, or download may all be monitored with this tool.
  • Relative ROI: You can use the relative ROI framework to evaluate your campaign’s performance compared to other marketing initiatives. It is more involved than the first measuring model since it provides more specifics regarding where and how to invest in future campaigns. In addition, it will show you where your focus should be directed.
  • Attribution Modelling: There are more straightforward methods for gauging return on investment, but it is certainly up there with the best. It lets you thoroughly examine your content’s performance across all your marketing channels.

Set Up Monitoring Systems

Tracking tools should be used to observe how well a video does throughout a campaign. Metrics like views, engagement, and conversion rates can all be gathered using these instruments. To monitor crucial data like website traffic and conversion rates, many web admins turn to Google Analytics.

Use the analytics features offered by the sites where your films are stored. YouTube and Vimeo, for instance, both include in-depth analytics dashboards that reveal information about video views, user interaction, and demographics. Facebook and Instagram, for example, both have analytics features for video promotion. Use these instruments to monitor and assess critical KPIs.

Estimate Expenses

A video campaign’s return on investment (ROI) can only be calculated once the total cost of making and promoting the videos has been identified. Expenses like making a film, advertising, and distributing it all go under this category. To determine the campaign’s return on investment (ROI), deduct these expenses from the money it brought in.

Examine The Data

Once the metrics and costs have been determined, the results of the video campaign must be analysed. Continuing or replicating the campaign may be worthwhile if it yields the desired results and a positive return on investment. If the campaign does not achieve the desired goals, a strategy review and course correction may be for the next attempt.

Perform A/B Testing

A/B testing compares the efficacy of various video iterations and dissemination approaches. Try out different distribution channels, target audience segments, and calls to action with numerous versions of your video. Keep an eye on how each iteration is doing and compare to see which has the best return on investment.

Compare And Contrast

Comparison of return on investment to past campaigns or industry benchmarks might shed light on the efficacy of your video marketing efforts. You may then assess the results and pinpoint problem areas.

Optimise The Video Marketing Campaign

Your video marketing strategy should be fine-tuned in light of the information obtained from the previous phase so that accurate metrics can be raised. Posting advertising campaigns online has many benefits, the most notable being the ability to monitor their success in real-time and make adjustments as needed. Look at your campaign’s analytics to see if any problems need fixing.

  • Is your campaign receiving less-than-ideal responses from a subset of your intended audience?
  • Is it true that people are leaving videos after only a few seconds?
  • Is the video’s engagement rate too low, or is it just not converting viewers into buyers?

Analysing And Assessing Your Video Advertising Is Easier With The Right Tools

Thankfully, social networking sites come equipped with tools that can assist you in gathering data and making sense of what you see.

Google Analytics for Website Analysis

This Google-made app tracks and analyses how users interact with your site. By monitoring incoming data, you may quickly get a bird’s-eye view of your website’s performance. Regarding tools for analysing website traffic, Google Analytics is truly indispensable. While it does not let you track individual users, it is excellent for looking at the big picture of all your video marketing efforts or diving deep into specific ones.

Video Analytics for Analysing Videos Specifically

Using video analytics tools while executing video campaigns is crucial so you can see how well your videos are doing. Views, interactions, shares, comments, and other metrics must be tracked. Using external video analytics services like Vidooly and Wistia is recommended. However, Vimeo and YouTube’s built-in analytics tools are usually adequate.

Internal Video Analytics Tools

YouTube Analytics

Twitter Analytics

Facebook Analytics and Facebook Insights

Snapchat Ads

Instagram analytics

Other tools include Optimizely, Infusionsoft, Vidyard, and Optify. These offer a plethora of superior metrics covering many facets of video marketing and effectiveness.


Only by monitoring video marketing return on investment (ROI) can you ensure that your video spending increases revenue. After all, you may only know if the video investments are worth something to your organisation if you evaluate all the expenditures related to video creation and compare them to the revenue that video campaigns generate.

Video marketing ROI can be calculated in several ways, including but not limited to watch time, view count, comments, and shares; however, the method that is most appropriate for your particular marketing needs, objectives, and budget will vary from video to video.

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Dan Grant