Production staff shooting a product video

One of the most popular, engaging, and profitable types of content these days, especially on social media, is video content. With recent success and promising future prospects, video marketing is here to stay. 

If you’re considering an investment in video marketing, you’re probably wondering about its return on investment and whether it’s worth it. Here’s an easy guide to video marketing’s ROI based on the metrics you can monitor to measure its success.

Metrics for Return on Investment (ROI)

ROI is probably the most common metric used in every business to track investments and their profit. Calculating the overall ROI isn’t tricky—all you need to do is take your incremental revenue and subtract your investment’s value from it. Video offers you among the best marketing returns on investment of any content type, with up to 92% of marketers vouching for its effectiveness

However, with video marketing, ROI is somewhat tricky to calculate directly. Breaking it into sub-metrics is the best way to determine the effectiveness of your video campaign. These sub-metrics include:

1. Total Views

Total views include all views on a video, including both unique and repeat views. The total views metric is a good representation of how engaging your content was and how many people came back to watch it. More total views indicate your campaign has been effective and has left a lasting impression on your target demographic. It’s perhaps the most visible representation of your video’s popularity and tells you just how effective your video promotional ad spends or video SEO efforts have been.

2. Unique Vs. Repeated Views

A unique view is a new individual watching the video. Repeated views from the same user are not included in unique views. Unique views are considered the most realistic way to determine the reach of your video campaign.

Platforms like YouTube and Facebook reward higher counts of unique views, since this suggests a larger reach. Theoretically, higher unique views should equal higher video marketing ROI, provided a decent chunk of the viewers engage with your brand after watching the video.

Dashboard showing performance metrics

3. Audience Retention

Audience retention indicates the point a viewer stops watching the video. This can help a brand determine flaws in its content and tweak it in the future to retain the audience. YouTube offers a relative retention metric to help you track your audience retention compared to other similar videos of the same length.

If you intend to put significant money behind a video campaign, it can be a good idea to A/B test the video in a focus group or a survey to judge its effectiveness for your target audience. This will give you the best chance of earning a high ROI on your video marketing campaign. It might be a good idea to do this anyway to ensure your messaging doesn’t inadvertently offend any of your audience and land you in hot water.

4. CTR (Click-Through Rate)

The CTR is a representation of how many people clicked on the call-to-action (CTA) after watching the video. A good CTR suggests that your video campaign was engaging and successful and is usually the best indicator of decent video marketing ROI. Low CTR could either mean your video couldn’t compel enough people to click the CTA or people stopped watching before they could even reach the CTA. You might want to spend some time customizing the CTA for your audience and products. Instead of a generic “Learn More” or “Buy Now,” consider creative calls that inspire viewers to reach out to you.

Produce High-Performing Video With Proven Experts

Now that you know how to track returns on video marketing, it’s time to invest in high-quality content to ensure you engage your audience and leave a lasting impression with your video campaign. 336 Productions is a leading video production company based in Los Angeles, specializing in business video production, brand video production, and B2B video production. We pride ourselves on delivering some of the highest video marketing ROI in the business.

Contact us to level up your video marketing campaigns today.

  • Marlowe Stone

    "Marlowe Stone is the co-owner and co-founder of 336 Productions, a video agency specializing in corporate video production and branded media, producing content for government agencies and some of the world's biggest brands. She oversees the day-to-day operations of the business. Additionally, she writes, produces, and project manages many of 336's projects. In 2022, Marlowe graduated with her Executive MBA from UCI to gain new insights and knowledge. She also holds a certificate in Women's Leadership and Digital Transformation. An Orange County native and mom to two girls, Marlowe is happiest when spending time with her family and friends."

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