How To Measure Conversion Of Online Video Campaigns13 min read
When it comes to measuring a video ad’s success, views aren’t everything. This article is the fourth in series to support marketers that want to learn how to measure video marketing ROI. Our mission is to help you identify the right Key Performance Indicators (KPIs) of video marketing campaigns and ultimately achieve clarity around measuring ROI at each stage in your funnel.
The ultimate goal of performance marketing is conversion. Conversions are additional actions that a customer takes. Popular examples are online sales, lead generation, sign-ups, downloads, installs, and subscriptions. Conversions occur after multiple interactions, as a customer moves along their journey through awareness, engagement and finally action. Nurtured buyer journeys lead to more sales and higher conversion rates. This leads to better performance.
Conversions happen either in-session (I see, I click, I buy), over time (multiple sessions), or over platforms (multi-channel retargeting conversions).
Growing Top-line Revenue
Direct sales are the result of video marketing that drives immediate purchases, sign-ups, downloads, installs, and eCommerce.
To measure the value of conversions you need to know the Lifetime Value (LTV) of each conversion. The LTV is an estimate of the net profit of the entire future relationship with a customer. And to measure the profitability of each customer you need to know the Customer Acquisition Cost (CAC) which in video marketing includes the cost of media, software, and services.
To measure downstream retargeting conversions, track the number of pixeled users who have visited a landing page, and then, track the conversions of those retargeted users.
Measuring The Value of MQLs
For most B2B considered purchases, conversions are leads rather than direct sales.
Calculate the Value of a Marketing Qualified Lead:
Start with the value of a customer (LTV). For instance, if your LTV is $20,000, a healthy price to acquire that customer is a 25% Customer Acquisition Cost (CAC). 25% of $20,000 is $5,000. Our experience with B2B conversion rates has shown that you should spend around 20% of the CAC for a Sales Qualified Lead (SQL). 20% of $5,000 is $1,000 for an SQL. Then take the typical conversion rates from MQL to SQL of 20% and apply that to your SQL; 20% of $1,000 is an MQL target of $200.
Another way to calculate how your company values MQLs is to view other lead generation channels. For example, check out content syndication providers (like Ziff Davis, IDG, Tech Target and others) to find out what they charge for MQLs.
Quora is a good benchmark of MQL data too, and a recent analysis found that MQLs for B2B technology run from $50 to $250 per MQL.
To increase the value of MQLs, optimize form fills on landing pages. The more qualifying responses marketers get from prospects, the more work is put on automation and predictive marketing. There needs to be a balance, however, asking too many questions leads to fewer conversions.
Remembering the type of content that led a customer to provide their contact info reveals valuable information about what they are interested in. Therefore, for content qualified MQLs, track the topic interests in white papers, reports, and guides (deep content). Then, feed this information into marketing automation like Marketo, Eloqua, HubSpot for lead scoring.
Measuring Value of Expansion and Retention Campaigns
Video Marketing Automation targets existing customers for expansion and upsell.
According to some marketing analysts, it costs approximately 5 times as much to acquire a new customer than to retain one. This implies a higher margin on upsell and cross-sell. And, since the probability of selling to an existing customer is 60%, compared to the probability of selling to a new customer is 5%-20%, this leads to higher CTR and Conversion rates.
Existing customers are 50% more likely to try new products, and they typically spend 30% more compared to new customers. This means that cross-selling is critical for growing margin. Further, increasing customer retention by 5% increases profits 25-95% growing LTV.
Measuring Value of Campaigns vs Offers
It’s important to discreetly track the performance of campaigns. To measure the effectiveness of a campaign, track the number of clicks on offers to a landing page. This shows how effective your campaign is in reaching the right audience and presenting the right offer. To measure the effectiveness of an offer, track the number of people who complete a given action. This shows how effective your offer is, regardless of the campaign’s effectiveness. You don’t want to confuse offer performance with campaign performance.
The effectiveness of a campaign is measured by how many people are targeted with relevant content that, subsequently, click and view a landing page. When the user reaches a landing page they evaluate the value of the offer; if the offer isn’t valuable enough, then no conversion happens. This is measured with a low conversion rate. To improve ROI performance in this case you should swap the current offer with a more valuable offer, such as a free trial or a demo. More valuable offers have a higher probability of conversion.
Boost Conversion by Adding Retargeting
Valuing Retargeting Multi-Channel Conversions
A proven model in scaling conversions is combining video advertising with retargeting advertising. This is critical for conversions that occur over time and common with considered purchases like B2B and financial services.
Multi-channel conversions use highly targeted first-touch advertising combined with retargeting (targeting only those people who have seen your ad). This allows you to use cheap retargeting display advertising to convert users over a longer window of time. Advertisers leverage this with costs per conversions running between 5% – 25% of the original CPC. Some Brite customers have found that adding retargeting to video targeting can improve CTR by 20x. Generating the ‘first touch’ in a buying decision is the most difficult interaction with a customer. It’s difficult to find the viewer who will be interested in your product in the first place. This first touch is a critical point in which your customer becomes aware of your offer, and an advertiser engages with them. Once this is done, advertisers should employ other cheap and broad retargeting tools to convert users over time.
How Multi-Channel Conversions Work
The typical user-flow looks like this:
- A user is targeted and shown a video ad via YouTube TrueView.
- An advertiser presents an offer that leads to a landing page
- The user is pixeled on the landing page by a retargeting system (Google remarketing, AdRoll, Criteo etc).
- Over time a user is retargeted by display ads across a retargeting network
- This can lead to a user’s converting
Generating the ‘first touch’ in a buying decision is the most difficult interaction with a customer. It’s difficult to find the viewer who will be interested in your product in the first place. This first touch is a critical point in which your customer becomes aware of your offer, and an advertiser engages with them. Once this is done, advertisers should employ other cheap and broad retargeting tools to convert users over time.
Retargeting relies on first-touch interactions.
These first touches originate from awareness campaigns. An advertiser can measure the value of pixeled users through downstream conversions by evaluating the volume of retargeting display landing page visits (or downloads, sign-ups etc). Measure this with Google Analytics or with a specialized provider like C3 Metrics or others.
To accurately track attribution over time, measure the trailing 90 days of conversions. Tracking attribution is important in capturing longer buyer cycles. Your purchase process and lifecycle of purchase decision will govern your conversion window.
To measure the effective Customer Acquisition Cost (eCAC) combine the cost of TrueView with retargeting advertising. Use multi-channel attribution (MCA) tracking software that models attribution across multiple touches to have better insight into attribution.
Fortunately, at Brite we’ve made it really easy to measure ROI of your video marketing on YouTube. Our technology helps marketers target, optimize, and automate YouTube campaigns to generate and measure revenue from your video marketing. Try it for free for 14-days.
All the things you need to know about generating revenue with video marketing In 2018.
We’re sharing the best opportunities in video & helping you avoid the big mistakes. Sign up to get updates from Brite's video marketing growth blog.
You might also like…
Over the past year there have multiple incidents of brand safety issues that have plagued YouTube. Much has been said on what, if anything, YouTube can do to address these issues and regain the trust of large-scale advertisers. And to that point, the argument could be...
Warning: this may ruin your existing video marketing plan. Imagine you’re at work—project management to-do list and Slack app open on your laptop, while the real estate on your monitor is crowded with note taking/blogging apps, spreadsheets, and marketing automation...
Awareness is the front line of marketing. A typical customer today does not contact sales until he or she has self-discovered and consumed content. As the popularly quoted saying goes: 70% of the buyer’s journey is complete before a buyer even reaches out to sales. To...