How Video Drives Marketing Success and Improves Your ROI

Video is the hottest media right now to build your organization’s brand and win new customers.

Want proof?

Here are just a few of the eye-popping stats from an article at

  • 90 percent of consumers say watching an informational video helps them decide to spend.
  • 64 percent of consumers are more likely to buy a product online after watching a video.
  • Real estate listings that include a video produce 403 percent more inquiries than standard text and photo listings.
  • For more stats, be sure to download our whitepaper on how video is driving business.

So, you can see that consumers really like video. But the most compelling stat on the power of video may be that 73 percent of business-to-business marketers report positive return on investment (ROI) from their video marketing programs.

Video is more than just a fun, creative way to tell your organization’s story.

An investment in high-quality video pays for itself in new customers, greater loyalty from existing clients, and more efficient sales efforts.

And these results can be measured, which is essential for getting the most from your company’s marketing dollars across what seems to be unlimited channels and platforms.

Marketers who use videos grew revenue 49 percent faster than those who did not, but the ultimate test of your video marketing programs is how increased revenue stacks up against the cost of high-quality video. After all, no company wants to see their bottom line dip while videographers win awards for creative campaigns.

How do smart businesses measure the value of high-quality video? As with any other business initiative, the first step is to identify the goals for your project.

The Main Categories of Marketing Videos

Video-based marketing campaigns tend to fall into three categories, all of which impact your bottom line and create positive ROI in different ways:

Revenue Generation

Video is a great device for encouraging customers to buy, or to sign-up for a mailing list that you’ll use to sell products to them directly in the future. One of the most commonly cited stats on video is that it increases conversions on website landing pages by 80 percent. Revenue Generation videos create ROI by increasing the volume of revenue created by the same cost of marketing efforts.

Customer Service and Education

How-to and help videos are great ways to encourage customers to resolve issues without placing costly calls to your Customer Service department. Cost-containment on customer support is the most immediate, easily measurable impact of Customer Service and Education videos on ROI. A positive experience with an educational video can also build customer loyalty and lead to repeat sales, which are always a great Revenue Generation contribution to your overall ROI.

Brand Awareness and Sentiment

Branding videos are a great way to spread the word about your products and services. Measuring their immediate impact on ROI requires tracking the lifecycle of customers who were introduced to your company through video-based branding campaigns. It’s a little more work to measure, but Brand Awareness and Sentiment videos create positive ROI by lowering the cost of acquiring great customers.

ROI Basics

ROI, as an accounting concept, is described by this equation:

ROI = (Gain from Investment – Cost of Investment) / Cost of Investment

The Cost of Investment for your video programs is easily identified — it’s your budget for producing high-quality video with either internal team members or contractors.

The Gain from Investment is a little trickier to determine. Essentially, you must measure the lift your specific marketing effort realized by including video, as compared to similar efforts that don’t have a video component. And you must know the dollar value of user behavior you are encouraging with the campaign.

For example, if you are adding video to landing pages to increase conversions, you must have a solid estimate of the value of those conversions to compare to the cost of your high-quality video content.

If the landing page is devoted to selling a product, you’d take the total revenue created by the video-based landing page and subtract the sales attributed to a similar non-video landing page with the same level of marketing push behind it.

So, your simple ROI calculation would be:

ROI = ((Revenue from Video Landing Page – Revenue from Non-Video Landing page) – Cost of Video Production) / Cost of Video Production

Finding the Gain from Investment for your video marketing programs typically requires either A/B testing of campaigns, or at least comparing your video-based campaigns to historical campaign data.


ROI is easiest to determine for Revenue Generation video marketing, as we just illustrated. Customer Service and Education and Brand Awareness and Sentiment campaigns require a little more complex tracking and calculation, but your Marketing team can find the ROI on any video campaign with current tools.

Some Simple Video ROI Test Programs

Before you attempt to measure the ROI value of your video programs, you should set goals for your investment. This requires a little homework if you have not already determined the dollar value of some events, such as click-throughs on emails and newsletter signups.

Here are some fairly basic test programs you can run to determine the ROI of video for your organization.

Use Video in Your Online Advertising

Plain old static banner ads just don’t cut it anymore. Video ads boast a click-through rate of 1.84 percent, the highest among all digital ad formats, with some ad lengths reaching an unheard of 2.5 percent CTR. Including video in your paid online advertising campaigns in one of the most simple ways to prove ROI, since online ad platforms are designed from the ground-up for A/B testing.

Use a Video Instead of an eBook

Use a video to encourage users to sign-up for a webinar or other interactive online experience, as opposed to baiting them with access to an ebook. Executives love video —  B2B marketers now use video almost as often as e-books, per CMI’s 2017 Content Marketing Benchmarks report. (Sixty percent of B2C marketers use it as well.)

Use Videos in Your Marketing eMails

Video content can increase click-through from e-mails by 200 or 300 percent. To find the ROI from such email campaigns, you’ll need to know the dollar value of the conversion (a sale, sign-up, etc.) the mail is promoting. You’ll also need to track the conversion rate that follows the increased clicks you get from the email – just because someone clicks from your mail does not necessarily mean they will complete the deal.

Video Means Business

As you can see, high-quality video creates significant, measurable returns on your investment in this powerful marketing tool. Determining the ROI of your marketing campaigns allows you to target your video marketing dollars to the areas of your business where video can drive the greatest impact to your bottom line.

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