Did you know that 55% of online users watch at least one web video every day?
Online videos have become one of the most powerful ways to increase sales and profits for businesses of all sizes. If you are struggling to increase your bottom line, online videos may be your saving grace.
If you’re looking to increase revenue, you have three options:
- Increase the traffic to your site
- Upselling your products or services
- Use online video to increase conversion rates
Among those three, online videos are by far the most effective.
In fact, web video can increase your conversions by up to 1,400%.
How Promotional Videos Increase Conversions
It’s no big secret that incorporating web video production into your marketing strategy will greatly increase sales, but by 1,400%? Don’t take my word for it. Let’s let the numbers do the talking.
- A landing page with a video will convert up to 800% higher than the same landing page without a video. (Funnel Science)
- Potential customers are 85% more likely to make a purchase after watching a video on your site than those that do not watch a video. (Internet Retailer)
- On average, videos are shared 1,200% more times than text and links. (Simply Measured)
- Promoting your products or services is 6 times more effective than online or print ads. (Atlas)
- Online video gets customers through the door. Four out of ten shoppers will visit a store in-person or online after watching a promotional video. (ReelSEO, 2012)
- Using an online video as a “call to action” can increase conversions by up to 30%. (ConversionXL)
The bottom line: Visitors are more responsive to videos than any other media. We like to see products at work. We like to hear from representatives of the companies we are considering purchasing from. Videos make your brand seem more “human.” They also get your point across in a more meaningful way and in a shorter amount of time.
Measuring ROI in Web Video Production
Even just a small increase in your conversion rate can improve your bottom line. Although the cost of creating promotional video content has become more affordable, you may still be concerned about the return on your investment.
Measuring the success of your online video investment starts with knowing what your goals are. What are your objectives? In this case, the goal would be to increase conversions. For any commercial company, improving sales and revenues should be the ultimate goal. This can be done by comparing the following:
- Total number of video views > Total number of generated leads > Total number of “actual” leads > Sales > Revenue
Let’s use an example to illustrate the point. You purchase a web video for $1,000 and you receive a total of 20,000 views. This means you spent just 5 cents per view. This is immense exposure that can skyrocket any marketing campaign. When we break these views down further, you may have converted 5 percent of your views to leads. This means you spent a total of $1 per lead. Not bad for highly targeted traffic.
If just 30 percent of these leads were actual people interested in your service, this means the real cost per lead would be $3.33. If you had a 10 percent conversion rate, you would be paying $33.33 per actual converting lead. For a quality sale that is worth $500 or more over the lifetime of a customer, this is an impressive 1,400 percent on return. With this being a rather small lifetime sales figures, this may mean even higher ROI. For just a $1,000, this is a solid investment.
It is also important to remember that ROI doesn’t always have to equate to dollar figures. You also need to consider the increase in brand awareness. If people are talking about your brand on social networks and sharing your video content, the extended reach you gain can be just as valuable.
To truly get the most out of your promotional videos, you need to work with true professionals that understand how to create video content that increases conversions. We can help you get started. Name your budget and fill out our online form today to receive an instant reply. Even if you are on the other side of the world, you’ll receive a response in just 8 hours or less.