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Calculating the Return on Investment from Video Marketing

· advertising,programmatic,save costs,singapore

According to LinkedIn, B2B marketers see videos as a medium that drives lead volumes. Approximately 75% of B2B marketers believe that videos are one of the most important content formats in digital strategy, followed by social media creatives at 60% and e-mail at 46%.

83% of B2B marketers believe videos help drive lead volumes. 86% of them also think videos produce higher quality leads.

In Singapore, majority of marketers surveyed by LinkedIn believe that videos result in better quality leads because of the variety of creative content that are displayed on video. It is estimated that 67% of B2B marketers in Singapore spent over SGD 100,000 in 2017, while 74% are planning to spend over SGD 100,000 in 2018.

9 out of 10 marketers believe that videos give their brand more room to tell a story. Marketers see videos as portraying energy (17%), inspiration (14%), information (13%) and humour (12%).

The transition to programmatic buying of display ads (which includes online videos) has allowed advertisers and agencies to target audiences more effectively using personalised creatives. For B2B clients, there has never been a better time to dynamically target specific profiles with tailored video content distributed on a large scale, and to track how viewers are interacting with them. - V.R. Srivatsan, MD for Adobe Southeast Asia.

What is the return on investment from the cost of producing a video?

Many businesses we speak to struggle to figure out how the cost of producing a video will be paid back in sales, or if at all.

  • Videos embedded on a website can result in 80% increase in conversion rates;
  • Emails containing videos have a 96% higher click-through rate when compared to non-video emails;
  • Video marketers get 66% more qualified leads every year;
  • Video marketers enjoy 54% more increase in brand awareness per year;

Calculating Video Return on Investment from theAsianIR video marketing

At theAsianIR, amongst other types of video, we produce corporate videos for clients’ websites. Strategic use of corporate videos involves placing them on pages where they can have an impact on conversion rates. A conversion might be each time a visitor completes a form, or it might be in terms of purchases.

If your goal is for visitors to fill in a form, we need to establish a value for each time a visitor completes a form. How we calculate this can be measured by understanding what value a completed form is worth to our client. For the sake of this example, let’s say that each form completed is worth SGD 30 to a client's business. If 50 visitors fill in the form in month 1, the benefit to our client will be SGD 30 x 50 visitors = SGD 1500. Assuming that a corporate video cost the client SGD 900. This is how we would calculate the video marketing ROI:

Cost SGD 1500/900 = 1.66. So our client's ROI* is 1.6 times or 166%.


* as videos can be used for a number of years in many cases, it is a good idea to look at the shelf life too when running ROI calculations.

If our client's call-to-action is to make a purchase, buy another associated product or upgrade to a more expensive product, it is possible to calculate a very accurate return on investment using the same method above. It is also worth noting that we can also calculate for our client how long it takes to achieve a payback from their investment.

Video is still a relatively forward-thinking marketing tool. We are in a position where we always have to convince others to want to spend on it, therefore we find that the ROI argument is the most persuasive that we have at our disposal.

Staggering Video Statistics

  • 82% of Twitter users watch video content on Twitter;

  • YouTube has over a billion users, almost one-third of total internet users;

  • 45% of people watch more than an hour of Facebook or YouTube videos a week;

  • More than 500 million hours of videosare watched on YouTube each day;

  • More video content is uploaded in 30 days than the major U.S. television networks have created in 30 years;

  • 87% of online marketers use video content

  • More Stats

    • 72 Hours of video are uploaded to YouTube every 60 seconds.

    • One-third of online activity is spent watching video.

    • Saudi Arabia is the country with the highest daily online video access, with 98 percent of online video penetration among the population (via statista). 
    • 85% of the US internet audience watches videos online.

    • Every second, a million minutes (17,000 hours) of video content will cross global IP networks by 2021, according to Cisco (via Forbes).
    • The 25-34 (millennial) age group watches the most online videos and men spend 40% more time watching videos on the internet than women.

    • Over 500 million (half a BILLION) people are watching video on Facebook every day (via Forbes).
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