This video will take you through the tricky process of setting your budget for a promotional video production and also getting internal buy in (within larger companies) for your promotional video production.
Here is the script from the video in case you had any issues viewing the video:
Although many marketers are now considering using promotional video as a marketing tool there is still a concern over how they will get a return on their investment.
This is of course a valid concern – every marketing channel needs a financial justification based on how it supports the business.
However, getting a new idea off the ground is tricky as you have no past data on which to gauge the potential performance; this makes getting internal buy in difficult, especially within large organisations.
This video will show you how to plan correctly to give yourself the best chance possible of getting a good ROI from your promotional video production.
Firstly, what measurable metric on your website are you hoping to improve?
Do you want more traffic to your website?
Is it the conversion rate of visitors to leads?
Are you trying to reduce your bounce rate on a core page
OR are you trying to get more people to add your main product to their shopping basket?
Say for example that your website brings in £100,000 of leads per month, and the core metric that you are trying to improve is your online conversion rate. Your online conversion rate is currently 2%.
Therefore if you moved your online conversion rate by 10% to 2.2% then you can assume that this will mean a further £10,000 in leads per month.
Now, if you consider that a well produced video production will probably be good for 2 years of use.
Therefore, in this example; if a video production DID result in a 10% increase in sales per month then it would be worth spending anything up to £240,000 on it.
Before the objections, if’s and but’s please give me a second…
We do not know what the video will do for your performance until you try it but I am merely using this example to show you a way to try and judge what is a reasonable amount to spend on a video production.
Unless you are a very large corporate then you should not be spending £240,000. Video production can be done for less than £1000.
You need to run some more scenarios like this based on your current performance.
Assume various levels of uplift; i.e. for a 1%, 2%, 5% and 20% improvement in performance to determine what will be the benefit?
Produce a simple spread sheet like the one shown beside me here:
Even if your website only currently produces £1000 of revenue or leads per month then over 24 months this will be £24,000. 10% is a fair uplift to assume through using a good video so this would equate to £2400 over the 2 years and as you can get a good quality production for £1000 you would still have a business case.
There is still a risk and there is still uncertainty, but what is the risk of not trying something new and missing an opportunity?
Here is a different spreadsheet example that analyses a business case based on an objective of increasing web traffic using video and how this will affect the bottom line.
Firstly; be clear on your objectives.
Then run some realistic scenarios to understand your aims
Finally; Set a budget based on a realistic projection.
If you have any specific questions then you can leave them below this video. At the end of the video do not forget to hit the subscribe button to get more online video marketing tips delivered direct to your inbox.