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The Ultimate Guide to Video Marketing ROI

Ritika from InVideo
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8 min

According to a video marketing survey, accurately measuring return on investment (ROI) for video marketing campaigns is the biggest challenge for 44 percent of small and medium-sized businesses.

While creating, sharing, and promoting videos has become easier than ever with social media, just posting videos about your brand and hoping for the sales to go up is never going to work.

Analytics is a key component of every video marketing strategy and that’s exactly what you should focus on while creating and tweaking your video campaigns. In this article, we will cover everything you need to know about video marketing ROI in order to make every video marketing campaign by your brand a success.

What is ROI in marketing?

Why Does Video Marketing ROI matter?

By identifying marketing ROI metrics, marketers are able to define the minimum numbers that they need to call their campaign a success. Calculating marketing ROI also helps create campaigns that completely align with your marketing goals.

The video marketing data can also help data-driven teams in creating more targeted content. With traditional marketing assets like images, emails, blogs, and eBooks, you are only able to tell whether someone viewed it or not. But with videos, there is so much more data to work with. You can measure how many people have watched the video, how many rewatched it, at what point did the majority of viewers stop watching, which parts were most-watched and much more.

video marketing

Video marketing teams can then cross-reference the data from their CRM team to determine the following:

  • How video views influence deals?
  • Which prospective clients or leads have watched what videos?
  • Which videos were able to drive the most leads or conversions?
  • What were the total video views for the month quarter or year?

For instance, you can determine which videos are able to convert leads into paying customers and create more similar videos. By truly paying attention to the video marketing ROI formula, you are able to determine exactly what kind of content can make a big difference towards revenue.

Whenever you find videos that go beyond your expectations with an outsize impact – do more of it.

The Top Metrics for Video ROI

1. Lead Generation

With the right video content, you can easily attract new customers, generate their interest in your products or services, and get more targeted leads.

If you are already using account-based marketing (ABM), you can align it with your video marketing strategy to engage potential leads. You can also create different video formats specifically for potential leads – like testimonials, a quick sales video, or a product demo.

While creating videos, it’s important to ensure your content is able to capture the attention of your potential customers. At the same time, you should also make sure there is a call to action in the video that directs the customers to your website for more information.

The main metric that you should consider for lead generation is Click-through rate (CTR).

Click Through Rate Formula

The total click-through rate (CTR) or the view rate is the total number of views divided by the total number of people who have clicked on the video. CTR isn’t directly dependent on the quality of the video, instead, it gives you a clear idea about how engaging your title, call to action (CTA), and video thumbnail are.

So, if you are seeing a lower than usual click-through rate, you can try experimenting with these factors and change them up.

2. Revenue

When it comes to ROI, there is truly nothing more convincing than actual money. Revenue should definitely be one of the key metrics for measuring video marketing ROI. Although it is also important to remember that revenue is one of the most difficult metrics to track in video marketing. You might never know if a customer made a purchase after watching one of your videos.

Finding the conversion rate is one of the best ways to calculate your overall revenue for a video. In broad terms, the conversion is the number of leads or customers that you are able to gain through a video. You can calculate it directly by dividing the total number of converted leads by the total number of unique viewers that saw the video.

3. Engagement

Video engagement can be measured in terms of the action taken on the video, the total reach of the video, and the estimated watch time.

Action taken: It is when people take an action on your video — it can be liking, commenting, or sharing the video.

Reach: This metric tells you the total number of people who saw the video, even if it was for a single second.

Watch time: This is the total time people spent watching your video. Monitoring this particular metric can help you get an understanding of how people are reacting to your videos.

Though, when it comes to videos, it is also crucial to remember that money isn’t everything. Videos can be a great way to build a steady relationship with your customers and improve brand awareness. When a customer engages with your brand’s content, they are more likely to remember you the next time they make a purchase. That is why engagement is an extremely important metric when you try to determine the overall video marketing ROI.

Engagement metric

Now that you have the metrics that you should pay attention to, here is the step-by-step guide to analyze and calculate video marketing ROI. By following these video marketing tips, you are guaranteed to make your video marketing campaigns a success.

How to Analyse and Calculate Video Marketing ROI?

1. Calculate your Campaign Costs

Before you start creating videos or launching video marketing campaigns, you need to calculate the total projected costs for the campaign which would include costs to make the videos, market them, and promote them.

While you may want to hire video marketing companies for the best content, it may not be possible if you have a limited marketing budget. Moreover, you need to make sure that you are putting the maximum portion of your budget towards promoting your video content.

The best way to do that is by using a free video-making platform like InVideo that lets you create high-quality marketing videos without any excessive costs. InVideo has a user-friendly interface with thousands of professionally designed video templates that you can quickly customize to create marketing videos for your brand.

 InVideo Video Editor

InVideo supports all the major social media platforms so whether you are looking for a YouTube video editor, or an Instagram ad maker, InVideo can help you with just about everything. InVideo also has promo video templates if you are planning to add compelling videos to your company website. By turning InVideo into your own promo video maker, you can create professional-looking videos in just a few clicks and impress your audience.

With InVideo, you can upload videos of your own, add sound effects, change filters and transitions, and even add subtitles as well as annotations to your videos.

2. Decide on the Success metrics for your Campaign

At this point, you need to determine how many sales you would need from the video marketing campaign in order to break even and call it a success. For this, you need to take into account the total amount of money you are putting into producing and promoting your video, and the cost of each sale.

3. Track Sales for your Video Campaign

If you are using Facebook Ad Manager to promote your video campaign, then you will be able to directly track sales and conversions for every video that you post. You can track the number of views, total watch time, people clicking on the CTA after watching your video, and even people who rewatch your videos.

4. Optimize your Video Marketing Campaign

Based on the data obtained from the last step, you should optimize your video campaign in order to improve the overall metrics. The biggest advantage of posting ad campaigns online is that you are able to get real-time analytics and tweak your campaigns for maximum impact.

Look for any issues in your campaign metrics in order to make tweaks.

  • Is a section of your target audience responding less than ideal to your campaign?
  • Are viewers abandoning the video in the just first few seconds?
  • Is the video not giving enough conversions even with high engagement?


If you want video investments to directly translate into revenue, then that is only possible by keeping track of video marketing ROI. After all, if you are not considering all the costs associated with video production, and comparing it with the revenue that video campaigns are driving in, then you may not even know if the video investments are worth anything to your business.

At the same time, while there are a variety of ways to measure the success of a video – from watch time to view count, comments, and shares, the correct way to determine the video marketing ROI for your campaigns depends on your marketing needs, goals, and budget.

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