Make no mistake, we're not talking about a crowned head here. In fact, the term ROI "stands for Return On Investment . return on investment "in the language of Molière. It's an excellent indicator for evaluating the effectiveness of marketing strategies. You're probably already familiar with its use. But are you using it for your videos too?
By determining the ROI of your marketing videos, you'll be able to estimate how much you've spent on producing them and how much you've earned from them. This is an important point when you consider that video content is booming, thanks in particular to its high visibility on social networks and other digital platforms. That's why it's vital to measure their impact on your business.
What's more, 87% of marketers are unanimous about the benefits of video in terms of increased sales and time spent on their website. Finally, we may be talking about a crowning achievement. That of the video format in digital communication!
The importance of measuring video ROI
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Track the performance of your video content
Measuring the ROI of your marketing videos gives you an insight into their performance. By monitoring key performance indicators, you'll be able to determine crucial elements such as the conversion rate achieved, the number of inbound leads following the sharing of your video, and much more!
Optimize the profitability of your video marketing investments
Measuring the ROI of your video marketing doesn't just mean justifying your expenditure. It also enables you to ensure the best possible profitability . Thanks to accurate analysis, you can identify which campaigns are delivering the most profitable results, and which strategies need fine-tuning.
This approach enables you toadjust your campaigns in real time, based on measured performance, and to correct elements that are not delivering the expected return. This continuous optimization process ensures that your actions are fully aligned with your objectives, and increases the profitability of your video marketing.
Optimize the profitability of your video marketing investments
Measuring the ROI of your video marketing doesn't just mean justifying your expenditure. It also enables you to ensure the best possible profitability . Thanks to accurate analysis, you can identify which campaigns are delivering the most profitable results, and which strategies need fine-tuning.
This approach enables you toadjust your campaigns in real time, based on measured performance, and to correct elements that are not delivering the expected return. This continuous optimization process ensures that your actions are fully aligned with your objectives, and increases the profitability of your video marketing.
Key indicators for measuring the performance of your content
The conversion rate, a highly tangible indicator
One of the most revealing indicators is the conversion rate. It measures the proportion of Internet users who take a desired action after watching your video. Do you want them to buy a product or service? Sign up for your newsletter or download your white paper? The higher your number of conversions, the more you'll be able to say that your video did indeed attract attention and prompt action. In short, a successful video! However, don't forget to analyze this audience to make sure it's actually your target audience and qualified leads.
Audience engagement through likes, shares and comments
In video marketing, the engagement of your target audience is generally visualized via likes (those famous thumbs-up), shares of your content and comments left. These elements show not only that your video has been seen, but also that it has elicited an emotional or intellectual response from those who have viewed it. A high engagement rate means that your video is relevant and has an impact. It's the perfect way to boost your company's or brand's reputation and, consequently, your return on investment!
Full view rate: who watched your video to the end?
When it comes to estimating the effectiveness and quality of your video, the length of time it is viewed can be very revealing. This is often provided by platforms such as YouTube. But you can also get an idea if your video is published on your website by observing the time spent on the host page. This is equivalent to the retention rate. In any case, a consistent time spent indicates that your content has held your audience's attention from start to finish! In other words, it's a sign of success in terms of content and narrative structure.
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It's worth noting that a full view rate is also synonymous with better referencing on social platforms: the algorithms will move your video up the list of recommendations, giving you greater visibility.
The number of clicks, views and subscribers gained!
Other indicators should not be overlooked when measuring the ROI of your marketing videos, such as the number of clicks, views andsubscribers obtained. These data provide valuable information about the appeal and impact of your video content.
The number of clicks will enable you to measure how many times the links embedded in your video have been visited. If this number is high, your call to action is effective. The number of views, on the other hand, measures the popularity of your video. In your analysis, you'll need to couple this number with the behavior of your audience, and therefore with conversion or retention rates. This will give you a complete picture of your video's impact. Finally, the number of subscribers obtained following viewing is an indicator enabling you to measure the loyalty of your subscribers and the impact of your latest publication on your community.
Find out more about our key performance indicators.
How can you calculate the ROI of your marketing videos?
As you'll have gathered from this article, return on investment or ROI is an important measure for determining the effectiveness of your video marketing. Here's the magic formula for calculating it:
ROI = (profit generated by video - cost of video / cost of video) x 100
Let's take an example: if a video cost €5,000 to produce and generated €15,000 in revenue, the ROI calculation would then be : ROI = (15000 - 5000 / 5000) x 100 = 200%. From this result, we understand that the video generated a return of €2 for every euro invested, i.e. an ROI of 200%.
However, be careful when estimating the cost of your video. You need to take into account direct costs such as the production and distribution of the video, but also indirect costs. The latter can include labor costs, time spent planning and managing the project, and any other ancillary costs. By ignoring these elements, you could overestimate your ROI. Let's say your marketing team spends 40 hours at an hourly rate of €50, that adds €2,000 to the cost of your video.
Last but not least, think beyond direct financial gains.
In fact, a marketing video can offer other benefits that are not financial, at least initially. They are harder to quantify, but just as important. When we think of non-financial benefits, we mean: improving your company's reputation and brand image, increasing customer engagement and loyalty, for example. To include these aspects in the ROI calculation, it is useful to associate specific indicators with each objective, such as the rate of engagement or the increase in the number of followers on social networks, and to estimate their value over the long term.
Tips to improve your return on investment
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There are several ways to maximize the ROI of your videos:
First of all, adapt your content to your target audience. To do this, you need to analyze your audience's preferences and behaviors to create tailored content. By doing this, you'll be able to define the format to use (testimonial, tutorial or explainer video), the tone and the platform on which your audience is most active. With a video that speaks directly to your target audience's needs and interests, you'll achieve a much greater impact, and therefore a higher return on investment.
Next, consider A/B testing. With these, you can compare different versions of videos or formats to identify the one that generates the best ROI. You could, for example, place variable elements from one video to another, such as the title, the call to action or propose different thumbnails, and thus determine the combination that works best to engage your audience.
Also, set up an effective video tracking system to analyze video performance data. By gathering this information, you'll be able to fine-tune your future videos. Tools such as Google Analytics or YouTube Analytics can provide you with invaluable data: time spent on your video page, conversion rate, viewing time, various interactions, and so on.
Finally, call on the services of our video editing agency. With tydeo, you're guaranteed professional-quality results. A quality that will give you the best chance of publishing videos with impact and ROI! Contact us today to find out more about our services or request a callback.
