As with any marketing campaign, demonstrating ROI and monitoring KPIs is essential. Being able to track and monitor the right metrics is the key to driving better outcomes for your video marketing.
However, working out what success looks like and how to measure the performance of your video content, can sometimes feel overwhelming. That’s why we’ve put together this handy guide so you can learn how to measure and maximise your video!
We suggest determining your KPIs and ROI expectations at the start of your video creation journey. This way you can ensure that the video you create aligns with these initial goals. You can learn more about this in our 6-Step Guide to the Perfect Video Marketing Strategy.
Even if your promotional video is already made you can still define your goals for your campaign. You can align these goals with the promotional strategy for your video, and then take steps throughout the promotional period to maximise the results– so fear not!
So, let’s get into it and learn how you can maximise the impact of your video marketing.
Table of Contents
- Essential KPIs to Track in Video Marketing
- How do you work out your CTR, conversion rate, or engagement rate?
- Metrics for Different Video Content
- Measuring ROI: How to Gauge the Value of Your Video Production
- Video Marketing Benchmarks: What’s the Standard for Success?
Essential KPIs to Track in Video Marketing
The first thing to consider when tracking the performance of your video marketing is your KPIs to assess your overall campaign health. These foundational metrics apply to almost any video marketing strategy to showcase its effectiveness. These metrics may slightly differ depending on what platform you use. However, generally, you should be looking at:
- View Count
- Watch-Time
- Clicks/ Click-Through Rate
- Conversions/ Conversion Rate
- Engagement / Engagement Rate
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How do I create KPI’s, goals and objectives from these metrics?
You may not initially know where to start in determining goals for these metrics, especially if you’ve never worked with video before. Approach this by looking at what you want to achieve with your video and linking it to your overarching marketing goals & financial forecasts.
For instance, if the aim is to increase website sessions by 20%, assess your marketing platforms and see which is currently the most successful for clicks. Let’s say it’s Facebook in this example. With video proven to boost clicks, engagements and conversions on social media, the goal becomes to increase your clicks via Facebook by 20% or increase your click-through rate using video. Determining your KPI’s based on your current performance and targets is a great starting point in helping you shape your strategy.
If the advert you are looking to run is not on social media but a TV advert, there are many useful ways to set your KPIs and track performance. If you are doing a Broadcast TV Advert in the hope of increasing Brand Awareness, again look at your existing metrics and following the launch of your TV advert, look for spikes in your data for the duration of your TV and ask new leads where they heard of you.
Platforms like Sky Adsmart offer a highly targeted solution to monitoring your campaigns. You can know exactly who your video is being shown to and how that drives your leads and conversions.
Be sure to consider where you are hoping to get to, and what you want your video marketing to achieve. This will give you the answer to your KPIs. If you are working with a reputable video production company, they will be able to guide you on metrics and measures to put in place to align the video with your goals.
Our 6-Step Guide to the Perfect Video Marketing Strategy dives into setting these goals and how to track them.
How do you work out your CTR, conversion rate, or engagement rate?
Here is a brief breakdown of the calculations you can use to determine and monitor your KPI’s:
- Click-Through Rate (CTR)
The Click-Through Rate indicates how effectively your content drives traffic. The higher your CTR is the better.
Formula: (Number of Clicks / Number of Impressions) × 100
- Conversion Rate
Conversion Rate measures how well your video content converts viewers into customers or leads. You can apply this formula to any action during the promotion of your video, from lead generation activities (sign-ups, contact forms) to actual purchases.
Formula: Conversion Rate = (Number of Conversions from Video / Total Views) × 100 - Engagement Rate
Engagement Rate reflects how well your audience interacts with your content, including likes, shares, comments, and more. A higher engagement rate is what you are aiming for.
Formula: Engagement Rate = (Total Engagements / Total Impressions or Reach) × 100
Metrics for Different Video Content
Depending on the goal of your campaign and video type, other metrics and indicators can show you how successful your video marketing campaign has been. For example:
- Internal Videos
If you are running an internal communication campaign, you may not have access to metrics that you would on an external platform. To monitor the performance of your internal videos, check for engagement rate and feedback, follow up with an internal survey and gather direct insight from your employees.
- Product Demonstration/ Explainer Videos
For product demonstration and explainer videos, you’ll likely be able to use the core metrics found across your marketing platforms if shared publicly. If you are using the videos following a purchase, or if you want more context as to whether this has helped your clients, follow-up with surveys and ask for feedback to gather qualitative data on the impact of your video.
- Customer Retention
If you are utilising video to retain customer loyalty, you should monitor how many clients return for repeat business following your campaign. Work out your retention rate before your campaign and after to ensure you can quantify the impact.
Measuring ROI: How to Gauge the Value of Your Video Production
The challenge that many marketing professionals face is demonstrating a clear ROI backed by financials.
While your objective may differ depending on the campaign type, it’s likely your core decision makers will want financial detail before signing off a new project. Along with being able to predict potential revenue, there are other core ROI calculations that you should be considering and monitoring throughout your campaign.
The calculations below allow you to utilise existing customer data, as well as the spend, to predict and report on throughout the course of your project.
Remember, you should be linking this back to your original core goals. What is the main objective of your video, and how do you want to attribute this to your overall target for your business?
Here are some calculations to consider:
- Average Customer Value (ACV)
The Average Customer Value represents the average amount of revenue generated from each customer over a specific period.
Formula: Average Customer Value = Total Revenue ÷ Total Number of Customers
- Cost Per Lead (CPL)
Cost Per Lead tells you how much it costs to generate a single lead.
Formula: Cost Per Lead = Total Spend ÷ Total Number of Leads - Profit
Profit is the amount of money made after covering all costs, excluding the spend.
Formula: Profit = Total Revenue − Total Costs - Return on Investment (ROI)
ROI shows how much profit you generate as a percentage of your total spend.
Formula: ROI (%) = (Profit ÷ Total Spend) × 100 - Return Per Pound
Return Per Pound tells you how much profit is generated for each pound spent.
Formula: Return Per Pound = Profit ÷ Total Spend
Video Marketing Benchmarks: What’s the Standard for Success?
It’s important to consider industry benchmarks when deciding how to measure your video performance. This will vary from industry to industry, and therefore ensure to conduct your own research. However, here are some general benchmarks for you to consider when it comes to video marketing:
- Tweets with video see 10x more engagement than those without (Social Media Today, 2023)
- LinkedIn users are 20x more likely to share a video than any other type of post (Social Media Today, 2023)
- Pinterest users are 2.6x more likely to make a purchase after viewing branded video content (Social Media Today, 2023)
- Video marketers get 66% more qualified leads per year (Optimonster, 2019)
- Video users spend 88% more time on a website (Optimonster, 2019)
- 96% of users have said that video marketing has helped their clients understand their product or service (Optimonster, 2024)
- 78% of Marketing Professionals said video marketing helped increase sales (Social Shepherd, 2024)
- 96% of people turn to video to learn more about a product or service
- Short-form videos have been the highest trend in generating ROI for 2024 (Hubspot State of Marketing Report, 2004)
Not only is the evidence to support the importance of implementing a video marketing strategy clear, but the ROI stats support it. You can use this industry data to help shape your marketing ROI, goals and objectives.
Ready to begin your video marketing journey?
Hopefully by now you’re clear on how to determine your KPIs and demonstrate the ROI of your video marketing. It can be daunting to launch a new marketing project, especially when tackling the many sign-off loopholes. But whether you’re a seasoned specialist in video marketing, or you’re starting on your journey – video is here to stay and should be a core part of your marketing efforts.
Here at Reels in Motion, we have over 20 years of experience creating video content that delivers you ROI and supports you in achieving your business goals. Whether you’re after social media videos, TV advertising, training videos or product demonstrations – we will bring your vision to life and support you in developing your video strategy. Give us a call on 01782 454054 or click here to get in touch.
