How much does a video cost?
We need a video right? At least, I think we do. I think,.. maybe.
So many of us are sure we need a video that could help our business but a bit unsure of why or how much it would even cost. I think we have had things a little backwards so let’s get the record straight.
What is the Goal?
Before we get to this I think we have a couple of other questions to answer.
Before we waste money and time on this - let’s dive deeper into the why.
The why is probably something like “I want to sell more” or “I want more views of a page or product.” Starting with your why you will be able to define your goal. When the why is more concrete your goal will be more exact.
How can we measure this Goal?
Secondly I like to direct my partners to the question of
Let’s say if we started with the Goal of “I want more views” and then ask ourselves the question ”How Many More?”. 5K, 10k? 20K? For a video campaign if we had 10,000 people viewing a campaign that would probably mean a percentage is buying into what you are selling.
According to Innovid.com Standard Pre roll video has a Mobile clickthrough rate at .05%
With that standard metric for 10,000 views that would roughly be 500 individuals clicking toward the next step of the process.
What does a successful campaign look like?
Third,
Instead of focusing on wanting more people to see this get more specific. In fact get as specific as you possibly can. Try specific numbers for a view Goal. Let’s say the Goal is 10,000 views of a webpage, it’s clearly easier to track compared to “I want more people to see this”. According to Aberdeen the average conversion rate for video is 4.8% so an estimate of 480 conversions would be the target.
Now with a view goal of 10,000 views would it still be a win if it were only 6,000? For 6,000 views at 4.8% conversion that would be 288 conversions. This is where you can go from vaguely firing at the sky and pinpointing numbers to where you are above or below the national average.
What would be your Financial Benefit?
Fourth -
I know, I know, this one seems a bit too personal but track with me here. From this previous goal of 10,000 views with an average conversion rate what is the realistic sale for each of those conversions. Remember 10,000 views with an average of 480 conversions, you know what - here’s the math for that.
If your organization could stand to make $200,000 off of this successful campaign - yet someone was originally pushing the campaign budget for under $1000 that might be an unrealistic expectation. Spending 1/200 of the profit from Marketing is an impressive feat but probably a little more unrealistic.
According to vendux.com marketing budgets are said to be at a 7-8 percent of the total gross. So to make $200,000 (if this seems to be a realistic feat for your organization) you might have to invest closer to $14,000 in order to logically make that math work.
On the other side of the coin. If you are wanting to make $20,000 as a result of a video campaign - well, 14,000 is no longer the right number. This number comes in closer to $1,400 but we get to a point where its a bit of a project for only $1400 invested.
So I will not give you a Video=Price but you do have the formulas to do some quick math and hone in on your realistic goals. Once again here are the points to think about to help you refine your video marketing expectations.
Goal of the campaign
How can we measure this Goal?
What does a Successful Campaign look like?
What is the Financial Benefit from this Successful Campaign?
For any further questions about video marketing that is what we do best.
Drop us a line at Start Here and we would be more than happy helping you hit your marketing goals.