Calculate Video Campaign ROI Before You Start for Expert Results
In this post I’ll show you how to set the rails and stay on track with a free video marketing ROI formula in Excel.
Spending your precious video marketing budget on paid ads has the highest probability of return on investment (ROI) of any type of content marketing. Gazillions of video marketers are working towards these well-proven results.
Now you can give up the spray and pray method and start getting these consistent video marketing results:
- Email marketing with a video earns a 200-300% increase in click-through rate (Forrester)
- Video on a landing page can increase conversion by 80% (Unbounce)
- 73% of B2B organizations that use video marketing campaigns in the mix report positive results to their ROI (ReelSEO)
Cute Cats, Puppies and Vanity Metrics
Video marketing has to deliver more than delighting your customers with funny or pretty pictures. The next time you hear the words cinematic, Red, or Arri in the same conversation of how a video production will add value to your video campaign, please come back here and read this post.
Engaging video is excellent, and vanity metrics have their place. Don’t get me wrong. Many video marketers measure their ROI on views, shares, and clicks. And that might be fine.
The free video marketing ROI calculator you are about to use gets right to the results that matter most in business.
Consistent Sustainable Video Marketing Results
To get consistent ROI results from your video marketing campaigns, there has to be a system. A system that is followed before the launch of every campaign. This way, if one variable falls out of alignment, it can be diagnosed and fixed.
- Data-driven systems remove emotions and magical thinking to deliver consistency
- A value-driven numbers based approach aligns all stakeholders on the same page
- Gain more success pitching decision-makers with a direct link between video marketing campaigns and fundamental business indicators.
Key Productivity Indicators (KPI) are the driving force in this ROI formula in excel. When the KPI’s are known before, it’s easier to tweak and optimize each element after launch.
Simple (Conservative) Video Formula Overview
- 100,000 video views
- 10% CTR = 10,000 clicks to your offer page
- 1% conversion = 100 new customers
- 10% CTR = 10,000 clicks to your offer page
Free Video Marketing KPI Strategy
There are a few pieces of data you’ll need to gather about your business before using this free lead generation compass. I’ve made it super easy for you too. All you need to adapt to your campaign are the input fields with a light blue color.
Here’s a description for each of the (light blue) input from your unique business:
- Setup Cost is the total cost of video production, ad accounts, tracking, and automation
- Ad-Spend is the total amount of your video campaign budget for the entire time
- MGMT – is labor if you’re paying someone to manage your campaign
- Margin of Error – is good to have in case of external events or miscalculations
- Order Value – or average order value if you have multiple product/service
- COGS – How much does it cost you to make or deliver this item? (cost of goods sold)
- Customer Goal – How many customers do you want to win in this campaign?
- Total number of days that paid advertising will run
- Sales Conversion Rate – be conservative if you don’t have past data
- Landing Page Conversion Rate – again be conservative or do some research
- Click-Through Rate (CTR) – ½ to 2 percent is a good average. Don’t confuse with information on Adwords CTR.
Click on the link above “Download ROI Excel Formula” to use this free video marketing ROI calculator for the highest probability of return on investment (ROI). It will help you re-focus on the most essential parts of your campaigns. And troubleshoot with pinpoint accuracy. Your next video marketing campaign is going to crush it!
Savvy video marketers understand the best results come from:
- 40% of video marketing success is attributed to your audience
- 40% of KPI success comes from the relativity strength of the offer
- 20% of video marketing success comes from the design and messaging
Most companies spend 50% or more of their resources on design and messaging and wonder why their video marketing isn’t getting results.
I’d love for you to do that too, but what I really want is to help companies I work with get the measurable results that matter most. If we’re aligned and work together, my goal is to take you from just another company to the company that gets these results.