One area of marketing that is being used more lately is video. Online video advertisements are gaining momentum because they do show a record of success when compared to other types of marketing initiatives. Explainer videos, in particular, have grown in popularity because they attract the right audiences and provide some measurable results.
Will these measurable results hold up to your accounting department’s scrutiny? It is possible! Let’s take a look at some of the ROI of explainer videos:
- Costs – the expenses involved in creating and publishing explainer videos is much more reasonable than the typical radio or television advertisement. Some of the costs to consider for your calculation should include any internal resources from your marketing group, script writing, style, design, production, and delivery. When you utilize a third-party video services provider, you may notice that the costs are often less when you consider the time it would take your team to put a piece together.
- Benefits – consider the key performance metrics that you may currently use for your marketing initiatives. These KPI’s may include some leads, the number of conversions, actual sales, promotion inquiries, contest participants and more. These same metrics can be used in calculating the ROI of explainer videos. Because the video is online you have a better means to track even more information.
- Intangibles – some items that may not pass accounting muster, but are worth mentioning, include your online reputation, search engine ranking, social media likes and shares, and more. While these intangibles are not easily measured in a spreadsheet, they contribute greatly to your brand identity and help to boost your business indirectly.
What should be a reasonable expectation for ROI of explainer videos? Most accounting firms prefer to tie marketing ROI directly to sales growth. With that formula most typical marketing campaigns can expect an ROI of a few percentage points. Explainer videos typically trend higher than traditional marketing simply because of their appeal and acceptance online. But the business should consider more than just ROI with their marketing initiatives. In a recent Forbes article, the better way to gauge marketing effectiveness is to factor the strategic intentions and their impact on the business. These intangibles, as noted earlier, can lead to business growth and recognition in the long term as the brand matures.
Launching an explainer video can be accomplished more effectively with the help of a knowledgeable partner. With the right video services provider, you can review best practices and understand what works well for video. You can also benchmark against similar businesses in other industries as well as examine your competitors to differentiate yourself.
The ROI of explainer videos can be measured, and you can be pleasantly surprised at how effective they can be.
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