Ask any marketer what they think about video. They’ll probably jump and say, “awesome.”
Video marketing has the potential to amplify conversion rates. Just ask the team at Demo Duck who boosted conversions to a CrazyEgg landing page by 64%. The result? Incremental revenue of $21K.
Video marketing works because we’re drawn to visual content. Here are some stats that explore this claim:
- 90% of information transmitted to the brain is visual, and visuals are processed 60,000X faster in the brain than text. (Sources: 3M Corporation and Zabisco via HubSpot)
- 188.2 million people in the US watched 52.4 billion online content videos in December 2013. The average American spent more than 19 hours watching online video. (ComScore)
- Viewers spend way more time on pages with video (Source: MarketingSherpa via HubSpot)
The problem with videos is that they’re expensive to produce. A five-figure spend will scare any budget-conscious marketer.
The solution? Focus on ROI – not how much you’re spending. A $10K investment is worth it if you expect to earn $50K in return.
The following framework can help you analyze the ROI of your video marketing:
Step 1: Learn to look past video views
Video views are important for gauging the popularity and reach of your campaign. This analysis, however, is only the first step. At the end of the day, your spend needs to be profitable. Every penny spent needs to translate into exponentially more pennies earned.
When quantifying the success (or lack thereof) of your video marketing campaign, you need to focus on actions that yield revenue.
Keep in mind that this process is not easy. Marketers are equal parts analytical and emotional. It’s natural to feel excited when you see that people are absorbing – and seemingly enjoying – your content.
Hold yourself to higher standards by focusing on conversions, transactions, and interactions instead.
Step 2: Optimize points of conversion
Conversions don’t happen by accident. They’re carefully planned – ahead of time.
Video marketing is more than just ‘advertising’ or ‘brand promotion’ – it’s heavily integrated within your purchase funnel and UX. Focus on specific opportunities for your videos to drive action. Here are some examples:
- CTAs within your video— Ensure that there are ‘clickable’ opportunities during and right after your videos play. CTAs should be bold, clear, and easy for audiences to identify.
- CTAs in proximity to your video – Most likely, your videos are integrated within your website experience. Make sure that it’s easy for audiences to transition from ‘viewer’ to ‘customer.’
Not sure what points to optimize? Talk to your customers. This type of qualitative research can help your marketing team understand the incentives that your audiences care about most. The more you understand your customers, the more empowered you’ll be to tailor your messaging and conversion opportunities to them.
Step 3: Audience engagement rates
At what points are your customers converting? What percent of the video is being watched?
Engagement rates can help you refine your marketing message.
Something that you may not know about marketing videos is that they can be A/B tested and optimized. Even if you create an animated explainer video, you can work with the agency or consulting firm to create different variations of the final version. Videos are editable.
Monitoring engagement rates can help you develop these A/B tests to truly ensure that your marketing is aligned with what your customers care about most.
You can make sure that you’re targeting the right audiences with the right messaging at the right time. Remember that online marketing requires specialization – not a one-size-fits-all approach.
Final Thoughts: Prioritize long-term value
Conversion funnels are complex. For B2B brands especially, prospects will need time – and space – before becoming paying customers. An important metric to watch is lifetime customer value – coupled with changes in monthly recurring revenue.
How have you quantified the ROI of your video marketing spend? Share your perspectives by leaving a comment below.
Video Marketing for B2B: How to Quantify Your Investment