How Much Should I Invest in a Marketing Video?

Making a smart investment in a marketing video.

The internet brought a rapid pace of change to the world of marketing, and nowhere has that been more apparent than in a marketing video. With broadband connections in more and more homes, more and more people are watching online video than ever before, giving companies a powerful new tool with which to reach customers. In addition, low hosting prices and the ever-decreasing cost of digital video cameras mean that these methods are within the reach of even small businesses or one-person operations.

Even so, creating a marketing video to present your product or idea to customers is an investment. Even if you shoot the cheapest video you can, using a smartphone camera and hosting the video on a free site, the video represents an investment of your time and effort. A more professional video, with superior production, expensive sets and paid hosting, can be a significant outlay.

The question for the prospective explainer video creator, then, is how much investment in video marketing is justified. When deciding what resources to commit to video production, there are several factors to consider.

The first and most obvious question is whether the marketing video will create a financial return on investment. If the video contains a direct call to action, it may be possible to track its effectiveness in terms of how many viewers are converted to customers. If the video exists more to raise brand awareness or create social-media connections than to achieve conversions, its direct financial impact can be much harder to measure.

Measuring the overall benefit of a marketing video therefore involves both objective factors such as sales and subjective factors such as brand goodwill. It’s still possible to measure the impact of a video, however. Comparing performance before and after the video’s release can be helpful, although other factors may enter the equation. One way to reduce some of the uncertainty in this process is to make sure to set a measurable goal before beginning the project. Maybe your goal is simply to direct viewers to your website; alternatively, perhaps you want viewers to sign up for your newsletter, like your product on Facebook or complete a survey. Whatever your goal, set it in advance and decide how you’re going to measure the results.

In order to determine your marketing video’s potential return, you’ll need to assign your outcomes a financial value. For sales, this is obviously the actual profit generated by the sale; for other outcomes it’ll be necessary to estimate. It’s important to be cautious about this estimate – it’s easy to be too optimistic when valuing intangibles, and many people find it hard to resist the temptation to make the calculation align with what they want to do already. Be conservative in your estimates.

Another factor in the calculation is the video’s lifespan. Although videos can remain online indefinitely, their effectiveness declines over time. You can extend the shelf life of a video by avoiding time-sensitive elements, but this can also reduce its promotional effectiveness. When considering video production, therefore, consider the video not as a stand-alone product but as the first element in an ongoing online video marketing strategy.

Lastly, consider potential audience factors. Online video can reach a wide range of potential customers, but this makes it well-suited to reaching certain types of markets. Local businesses such as brick-and-mortar retail establishments or similar enterprises will need to target their marketing more specifically than an online business which can benefit from reaching a geographically diverse audience.

Estimating the potential return – and possible ongoing costs – of an online marketing video can give you an idea of how much you want to invest in the production. The greater the potential financial return, and the longer the potential life of the video, the higher the level of investment you can justify.

If you’re considering a marketing video then speak to us. We can help you create a powerful and persuasive video that will boost your sales. What’s more, we guarantee it! Contact us today on 01527 910050