how video helps your bottom line

Let’s get down to brass tacks: the ultimate goal of any business is to generate more revenue. And in order to generate more revenue, one tried-and-tested way is to acquire more customers. You acquire more customers by delivering value on a foundation of trust. And video is one of the most effective ways of doing both those things.

As you create video content which delivers value and clear information to your prospects, your bottom line will grow as you receive more qualified inbound leads who trust you and want to do business with you. Read on to understand the qualitative and quantitative ROI of video production.

1. Define the initial cost of investment (a).

2. Define the net return from investment (b). 3 Subtract (a) from (b) to find (c).

3. Divide (c) by (a) to find (d).

4. Multiply (d) by 100 to find the ROI %.

The above calculation determines the exact shillings and pence you make from an investment into video production, but there are other qualitative returns. Such as…

• Conversion: video has the highest conversion rate of any other form of marketing.

• Shares: great video connects with your target audience, and a share can be as good as a referral.

• Cost-to-profit: analyse your marketing funnel, where prospects make a purchasing decision, and what role video played. By determining where leads are coming from, you can focus on that space with more video.

• Views: the number of people watching your video gives you an idea of what is working, and what isn’t. Hone in on what your prospects respond to in order to generate more leads.

• Engagement: by discovering the drop off point of a video, you discover what turns audiences off and you can further develop your marketing messaging.

Video marketing is used by over 86% of businesses, and with good reason. Take a look at some stats on video marketing.

• Nearly 90% of video marketers find video provides a positive ROI.

• About 87% of marketing professionals said video increased their website traffic.

• 83% of marketers have stated that video boosts their lead generation efforts.

• 4 out of 5 video marketers said they saw a video ROI specifically in their sales numbers.

• 91% of marketers are pleased with the effect of video marketing on their social channels.

If you’re already creating video content but you’re not seeing results, consider the following points to improve your ROI.

1. Identify Your Target Audience Who are you speaking to, exactly? What are their demographics and psychographics? Where do they sit in your funnel? What call to action will make them act? Know this, and your videos will communicate more directly and generate better results.

2. Create Achieveable Goals. Identify measurable, achieveable goals which will give your videos direction and metrics to measure.

3. Do A/B Testing Create multiple videos about the same subject but from multiple viewpoints. By doing this, you’ll be able to compare how videos do depending on their angle, and develop future videos to focus on what works.

4. Understand Distribution Determine the best place to share your video content, and you’ll see a better ROI over time. Creating social media packages will help for the likes of Facebook and Instagram; and a splash page video will help welcome visitors to your website.

While you should do everything you can to add video to your marketing strategies, you shouldn’t do it without a clear plan of action in place. Understanding who you’re speaking to, what the goals of the campaign are, and how you’ll measure those goals mean that you can afford to invest time and money into video production and reap the rewards when you stand out from your competitors.

A good video production company can help you develop and create videos which are designed to convert.