ROI can sometimes feel a bit like an ocean - deep, confusing, and ever-changing. But using video as part of your communications strategy, whether internal or external, is actually a great way to both boost your ROI and make it easier to calculate.
The proof? Firstly, 52% of marketing professionals worldwide say that video has the best ROI of all content types.
And secondly, video is different to other kinds of content. No matter where it goes online, you can always track its audience engagement metrics, which means you have more data on your side to work out the ROI of your video content. That's why 43% of video users can capture content metrics across all external channels - website, blog, and social - while only 16% of non-video users have this ability.
So even just using video will likely increase your overall marketing or internal communications ROI. But there's always room for improvement! By upping the ROI of your videos you'll be constantly getting better returns for your spend in the future.
Wait, what exactly is ROI?
Time for a reminder. Here's the formula used to calculate ROI:
So to improve the ROI of your videos you need to either reduce their cost or increase their gain. Because we believe the best results come from investing money into great video content (we're a little biased), we're going to share with you our 5 best tips to boost the gains of your videos.
Here's how to improve the ROI of your video content, so you can sail across that ocean towards the tropical island of your video goals (and hopefully some mojitos and palm trees, too).
1. Really understand your audience
There's no way you can create good video content without first understanding your target audience.
Remember that your videos aren't really about you at all - they're about your audience and their needs. This audience could be your customers or your employees, but the fact still applies.
Unless you consider how to provide genuine value to your audience, your video content won't be useful for or engaged with by them. And without initial engagement, there's no chance of getting a good return on your investment in video.
So take the time to understand your target audience and let this inform both your creation and distribution strategy.
2. Create a distribution strategy
You'll never get a good ROI on your video content if it isn't watched in the first place. So you need to think about your target audience, and how to ensure your video reaches them on the channels they use.
By effectively distributing your video content, whether externally or internally, you'll make sure your video gets watched, engaged with, and ultimately gets results. This is the foundation of future success - all the goals you want to achieve with video begin with your video content being seen. And the more of your target audience you can get to watch your videos, the better ROI you'll receive.
Be sure to spend time on planning where you'll use and share your video content, from uploading it to YouTube to screening it for your employees.
3. Use Call-to-Actions
Once you've got to grips with your audience and how to reach them, you need to think next about what you want them to feel, think and do after watching your video.
If you want viewers to take action once they're done with your video content (and you most likely do) then make sure you include a Call-to-Action, or CTA, at the end of your video. Don't leave your audience's actions up to chance. Give them direction by letting them know what you recommend they do next, whether this is visiting your site, filling out a form or putting an item in their basket.
By guiding your viewers towards your desired action, you'll be able to directly track and improve the effectiveness of your videos. And that, in turn, will increase ROI.
4. Repurpose and reuse your videos
You repurpose other kinds of content, so why wouldn't you repurpose your video content too?
To get maximum ROI from your videos, don't just use them once. Reuse them across different channels and in different ways. This will depend entirely on the type of video content you produce, but could involve slicing your video up into smaller parts and sharing on social media, writing blog posts around your video, or reusing footage in other videos.
By reusing your video content you'll get more bang for your buck out of the videos you do have, meaning you'll spend less on producing new videos. And as long as you always keep in mind your audience and what they find useful, the options for repurposing your video content are almost limitless.
5. Always track your results
Lastly, you should always always keep track of how your video content is performing. This will allow you to work out your video ROI more effectively, and plan for better results in the future.
At the very least, you'll want to measure:
- Play rate - A measure of whether the video was viewed once it loaded. For example, a 70% play rate means your video was watched 7 out of 10 times it loaded. A higher play rate means your video is more relevant on the channel where it's displayed, and viewers are more attracted to clicking play.
- Average engagement - This is the average of how much of your video viewers watched in total. An average engagement of 85% means, on average, viewers watched 85% of your whole video. The higher your engagement, the longer your audience is watching and finding your message useful and/or enjoyable.
- Click-through rate - A percentage of how many viewers of your video clicked on the Call-to-Action. If your video click-through rate is 67%, then 67% of all watchers clicked on your CTA. The higher your click-through rate, the more viewers are taking your desired action after the video ends.
But don't get lost in your statistics. Continuous improvement is the goal here. Use them to learn about what went right or wrong with your latest video, and how you can make even better video next time. By doing so you'll be improving the gains, and therefore ROI, of your video content.
There you go - those were the 5 steps you should be taking to boost your video ROI. Use them to navigate the sometimes uncertain waters of ROI and achieve bigger and better things with video. Good luck!