Whenever I talk to other entrepreneurs about video marketing, the same question comes up again and again.
“How do I know it’s going to be worth it?”
I get why that is. Unlike other forms of content marketing, video comes with a hefty barrier to entry. It’s not as easy as banging out a blog post, or creating an infographic, or putting together a slide deck, or even recording a podcast.
Producing a high-converting explainer video for your business takes exponentially more time, energy, and yes — money. Even if you’re outsourcing it, it’s still a considerable investment on all three fronts!
And investments should never feel like gambles.
You can’t afford to play guessing games with your hard-earned marketing dollars — or your team’s time and effort. So if you commit to using video to grow your business, you want to have a clear roadmap to success!
For starters, you want to define what success even looks like for your company’s unique situation. You need to ask the all-important question…
What kind of return on investment can you expect from your explainer video?
Let’s break it down.
(Heads-up / spoiler alert: at the end of this article, I’m sharing our new free tool designed to help you calculate your explainer video ROI in <2 minutes. Does that sound like something you could use? Then click here to try it now.)
Cracking the code of explainer video ROI
Even with all the analytics tools available today, measuring the ROI of video marketing campaigns — explainer-focused or not — is still surprisingly challenging.
And the #1 reason for it is, most business owners don’t look at the full story their sales and marketing data is telling them. They create a video, watch it go viral, pop the champagne and proclaim the whole thing as a success…
…even though their actual lead growth hasn’t improved.
Or they go a step further and do measure the conversion rate on the video, see that it brought in hundreds (or thousands!) of new leads… pop the champagne etc etc.
But then it turns out that very few of those leads turned into paying customers, and there was barely any impact on their bottom line.
And so far I’ve just been talking about measuring existing return on investment — not calculating the potential ROI!
Bottom line is (pun intended): if you want to accurately predict how your explainer video will perform for your business, you need a holistic, data-driven approach. Look at the full picture that your business KPIs and marketing metrics present, not just the most obvious elements.
Now, normally this would involve quite a bit of time and a bunch of (gasp!) math… But my team and I put our heads together and came up with a simple, effortless way to help you calculate the ROI of your explainer video — fast.
Solution: use our free Video ROI Calculator! (~2 minutes)
Video ROI Calculator is our new free tool designed to give you an accurate ROI estimate for any explainer video you want to produce.
All it takes is 2 minutes of your time and a basic knowledge of your essential business and marketing metrics — and you’ll be able to evaluate the success of your future video well before you start creating it!
We structured it as a simple step-by-step questionnaire, for maximum ease of use. Just input the relevant metrics into each field, and get an instant ROI estimate for your explainer video. All the number-crunching is done on the back end, so you don’t have to worry about it yourself.
Wanna give it a go? Then click the link below to access the Calculator!