What Is The Return On Investment (ROI) From Video Marketing?

· 10th February 2018 · 3:24 pm
When every penny counts in a marketing campaign, does video marketing offer a good ROI?

Believe me when I say videos are an important marketing strategy and should be deployed by every business.  Last year when we got a company to help us make a product video and they also provided the corporate video production to us, we hand no clue how much this was going to help our company sales. Upon the release of the video our sales not just went up by 23%, but our band also generated a ton of goodwill. Videos are quickly becoming one of the most successful techniques in gaining a significant return on investment in multiple sectors, especially when video editing softwares like www.makewebvideo.com/en/make/3d-text-intro-video are starting to gain credence in the market.

Every year, video seems to be becoming more and more powerful as an advertising strategy fit for the modern consumer. So, with increasing marketing usage, what exactly is the ROI from video marketing?

Why video?

Comscore reported that, on average, people watch 14.8 hours of online video every week. There is a huge audience base that has already adopted video marketing into their lives, and providers such as YouTube show this. YouTube is not only a video sharing site; it is the second largest search engine in the world. YouTube has over one billion users worldwide and understands the importance of online videos in communicating messages.

Videos can cover an array of tasks, from telling stories, explaining features, building brands, engaging the audience and making things clearer. Videos don’t just sell products; they sell ideas, emotions and reputations. Your business shouldn’t be thinking of whether to use video marketing; it should be deciding how their video marketing strategy will be most effective.

How to boost your ROI with video

As with any marketing strategy, accurately measuring return on investment is crucial. Every business needs to understand how every element of marketing effect their bottom line, to understand how to progress and make the business profitable and successful.


As with any digital marketing strategy, video marketing is a relatively new contender, and it can be hard to calculate the ROI. For your company to calculate whether the video marketing campaign will deliver a high ROI, the following points should be considered:

Business Goals

Does the video relate to your business objectives, is it part of your plan and does it have potential to meet your target?

For How Long?

Will your video be a short-term high-impact marketing strategy, or will it be able to be used for a long time? Shelf-life is very important in measuring ROI, as this will determine the longevity of your campaign and how many conversions you can complete in the time frame set.

Conversion Rate

How many people will your video need to convert into buyers to be profitable? Can you meet your business goals through this strategy?


Based on your calculated conversion rate and business objectives, you need to determine a realistic figure that will help to boost your profits, but which can be recovered should the campaign not be successful.

How does video marketing compare?

So far, the results of video marketing have been largely successful, when it is done right. Companies that invest huge amounts in the vague hope of their video going viral have not implemented the right video marketing strategy. While having a viral video is a goal for many, it is incredibly difficult to achieve.

We have seen highly successful companies use video marketing as a long-term strategy as videos can be seen to get good results. In a recent study, the conversion rates for sites without video is 2.9% whereas businesses that use video marketing on their website see a conversion rate of 4.8%. Videos can help to generate leads as well, as sites with video marketing require 27% fewer unique visits to generate the same amount of leads as a website without video. In monetary terms, this can be valued as £60 per lead as a cost when using video, and £74 cost per lead for those without video.

Regarding other marketing strategies, we are also noticing a distinct increase in ROI compared to television advertising. In a recent case, online adverts led to a 6% increase in sales across the whole brand, not necessarily the product that was promoted, compared to TV advertising. Online adverts are thus proving that videos can create a wider brand recognition and have a greater call to action than traditional methods.

How to ensure ROI though video marketing

With any marketing strategy, make sure you know exactly how you will measure the success of your investment and try not to change the goalposts. Stick to the objective you want to meet, whether that is increased brand recognition, increased sales or audience engagement. Monitor your marketing strategy avidly and always highlight what is working well.

Importantly, as with any strategy, it needs to be deployed well otherwise, it won’t be successful. Video marketing can be extraordinarily successful when actioned right, take the time to truly determine what you want to achieve and how you will achieve it before wasting time, money and resources on a poor product.

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