At the end of last month, the International Advertising Bureau (IAB) released a report on the current state of video marketing spending.
It’s probably no news to anyone at this point that video spending is on the rise, but the size of the shift towards video is larger than many marketers may have anticipated. As one respondent said:
“Two years ago, my video content budget was probably zero. Last year, it was maybe $2 million. In my 2016 plan, I have budgeted $15 million.”
– Product Director, Pharma (Rx)
Salesforce’s 2015 State of B2B Marketing report found similar results, with 62% of B2B marketers planning to increase their video marketing budgets in 2015. And as a result, most advertisers agree that original digital video content will become as important as TV by 2020.
But Marketers are Concerned about ROI …
Ironically enough, while advertisers and marketers are increasing their spend on video, one of the top concerns for 54% of respondents resides in proving the return on the money put in to video activities.
And sure, I mean … what else is new? “Why invest if you don’t know what you’re getting in return?” is a question we should probably all get tattooed in fancy script on the forearm of our dominant hand. In other words, as marketers, we ask it a lot.
But while we’re conscious of the need for this information, marketers frequently face situations with evidence that an activity is beneficial, but a lack of evidence as to the specific dollar value of those benefits. And without that, there’s no ROI to be calculated.
Fortunately, video is not one of these activities.
Aha! … tricky, tricky!
Measuring the ROI of Video
As you well know, measuring ROI means measuring dollars in and comparing them to dollars out. It means you need to be able to track all activities that impacted a closed deal, the cost of those activities, and the value of that deal.
Every impactful activity.
You’re likely already tracking this for things like ebooks and email campaigns. In fact, if I asked you to share the dollar volume that star white paper of yours stirred up, you could probably tell me without too much delay. You’re probably looking it up in your system right now, aren’t you? Okay – so maybe my request wasn’t that compelling … but if you felt so moved, I bet you’d be looking at reports in your marketing automation platform (MAP), CRM, or some combination of the two.
And from these reports, you’d know that your white paper drove 413 new MQLs, 224 new SALs, and 32 closed deals. Between design, promotion, and various other costs, you know the whitepaper cost you $1,000 to produce and with 32 deals at $100 each, you’re doing pretty well with a 3.2% return.
Bam. Easy. We solved that ROI problem years ago.
So why the confusion with measuring video ROI?
Because many marketers don’t have access to video data as part of their arsenal. And trying to translate 1.2 million video views into closed business is, well … not easy.
But just like marketing technology progressed to handle the up-and-coming text content that took off so quickly, it is also meeting the needs of marketers producing videos. Add a video platform that integrates with your current tech through your entire sales process and all of a sudden, video’s influence on the bottom line sits in line with all your other trackable activities. (Except, of course, that it will likely be beating this content in bottom line contribution).
See below for a snapshot of what this starts to look like for Vidyard’s video marketing.
And so, when you can start to track video activity throughout the entire funnel, calculating video ROI is actually pretty straightforward, and not at all a reason to hold back from the power of video.
Learn more about calculating the ROI of your video initiatives in this whitepaper.