In the last few years, many businesses have asked me the same question:
“How do I find that video marketing is giving good or bad ROI?”.
Few years ago, I wrote an article: “How to measure social media campaign ROI”.This article will concentrate on embedded videos on your product/services pages, more than videos on social media.
It might look like mission impossible at first, but practically, measuring ROI of video is very simple and easy. To get accurate results, you need A/B testing, control group and of course time.
For many years companies are trying to create brand awareness through video marketing, some are producing few a year, others hire videographers and produce hundreds. Well, it very much depends on the business niche and business model, but on the other hand everybody wants to know, “is video marketing and production waster of time or now”? I hate writing much, so let's go straight to the essence of this topic.
Run Different Control Groups and A/B Testing
The impact of video can be found easier with measuring and tracking behavior of different control groups. Two control groups:
products with videos
products without videos
Without a doubt there are a lot of metrics that will appear in your stats and analysis, but let's just concentrate on sales for now. The simples comparison is to check how higher are sales on products with videos vs products without.
Realistically, you can't get accurate result in 1-2 weeks. You will need at least 1-2 months, to get reasonable difference.
Due to fact that analytics and measuring ROI is always time stretched, a good idea is to go deeper into different metrics and control groups at the same time:
videos with music
videos with narration
genre (by genre I mean action, drama, comedy, etc... “fun sell”)
Talking about possibilities and reasons, I have to admit that I've track results on a website for about a year. Pages with videos used to have higher conversion, however the strange fact was that very small percent of buyers have actually watched the video. Simply the video have built credibility and authority.
The impact of videos on web pages is also related to SEO. I can't say that pages with videos are tolerated differently and get higher rankings, but I can say this – often bounce rate is lower and time spend on page is higher. Track and analyze everything.
This might sounds a bit odd and honestly I doubt that many companies have done that. During the video production, sometimes 2-3 variants of particular video are produced. Try A/B testing of different versions of same video. Sometimes, insignificant changes make big difference – for instance background music.
Though one thing is for sure, be consistent as soon you get decent numbers of what works, what doesn't work and how your video marketing is performing.
I know that most companies don't even try to measure ROI of video, I know than about 30% of businesses doesn't bother with online video production and marketing strategy. However with or without measuring and analytics – videos have great immediate and long term impact. Most visitors and potential customers will see your business more trustworthy.