Why & How to Calculate ROI of Corporate Video Production? 

Are you considering spending marketing dollars on corporate video production but are unsure if it’s worth it? You are not alone.

Corporate video production is increasingly considered a strategic step by organizations looking to improve their marketing efforts and overall brand visibility. Professional video production generally produces significant returns, making it a worthwhile investment for your marketing budget.

Did you know that 83% of marketing leaders now consider demonstrating ROI as their top priority, up from 68% five years ago?

However, dealing with ROI might feel like being stuck in the middle of the ocean: deep, confusing, and always changing. But, that doesn’t imply it’s not worth doing, even if it appears complex. It’s much simpler than you think to track the ROI of your video content and receive a high return on investment. 

So, if you are thinking of why it is important to calculate the ROI of corporate video production and how to calculate it, then this blog is all you need. So, let’s get started. 

What is the ROI of Corporate Video Production? 

The ROI of corporate video production is the value businesses get from their video content compared to their production costs. The outcomes are quantitative and qualitative. The quantitative ones include views, engagement, increased sales, profits, etc. While the qualitative ones include increased brand awareness, higher customer loyalty, and other factors that are difficult to measure. 

ROI (Return on Investment) measures whether the money spent on creating a video is worth it. It helps businesses understand if their videos bring in more value than cost. 

Keep reading to know more about why measuring ROI is important and how to calculate it. 

Why is Measuring ROI Crucial for Your Business? 

Now that you are aware of the basics of calculating the ROI of your corporate video production, it is important to understand why. It ensures that your business is getting measurable value from video marketing efforts. 

Here’s why it matters: 

• Proves Business Impact—By calculating the ROI on corporate video production, businesses can justify their costs by demonstrating how videos drive business growth, strengthen brand identity, and improve customer engagement. 
• Optimizes Budget Allocation – Understanding which types of corporate videos—such as training videos, company culture showcases, or executive interviews—deliver the best returns so that businesses can plan accordingly and allocate budgets. 
• Enhances Content Strategy – By tracking and analyzing, businesses can find out about the content, distribution channels, formats, and CTAs that work for them and capitalize on them to maximize reach and effectiveness.
• Improves Audience Targeting – With end-to-end tracking and analysis, businesses can accurately segment the audience, know what they like, and what works for them, and tailor corporate videos and strategy, ensuring they effectively engage employees, stakeholders, or potential clients for better retention and conversion rates.    
• Strengthens Competitive Advantage – Businesses today are looking to achieve the edge. And, tracking the ROI of corporate video production can help businesses stay ahead by continuously improving their content, and leveraging data-driven insights to enhance brand positioning and communication strategies.

All in all – by calculating ROI, businesses can ensure their video production efforts are strategic, results-driven, and aligned with their overall marketing goals.

How to Calculate Your Video ROI

1. Setting Clear Goals 

The first step in calculating ROI for your corporate video production is to identify your business objectives. Without defined and quantifiable goals, you will have two major issues: you will have no direction on how to develop that content, and you will be unable to quantify its success (if any) once it has been created.

To get a strong ROI from your videos, start with this basic step. What are you hoping to get out of your content? For you, what does success look like?

Your goals might be:

• Increasing Brand Awareness
• Enhancing sales
• Improving the conversion rate
• Educating the audience
• Changing Employee Behavior

Make your goals SMART.  This gives you a strong foundation on which to create and assess corporate video content performance.

2. Identifying the key performance indicators (KPIs)

Another step in calculating video marketing ROI is identifying the key performance indicators that you should consider for videos.  

• Views: This is the simplest metric and tells you how many people have viewed your videos. 
• Watch Time: This shows how much time viewers have spent on your video overall. Higher watch time means higher engagement and better results for your 
• Engagement Rate: The sum of likes, shares, comments, and other engaging qualities. A higher rate of engagement suggests that people are finding your content interesting and worthwhile to interact with.
• Click-Through Rate (CTR): This is the proportion of viewers who clicked on a call-to-action in the video. 
• Conversion Rate: This metric measures how many viewers took a desired action after, such as signing up or making a purchase, when videos were embedded on landing sites or utilized in adverts.
• Audience Retention: This indicator shows what proportion of the video is being watched by the majority of viewers. A sharp decline in views in the first few seconds may be a sign that your video isn’t successfully drawing viewers in.
• Video Shares: A higher number of shares indicates that your video content is attractive enough for users to share it with their networks, increasing its reach.

3. Track and Analyze Data

The next step is to track and analyze the data. Numerous platforms come with integrated statistics to assist you in tracking the performance of your videos.

Here are some of the popular analytics tools: 

• YouTube Analytics: Offers information on the audience’s demographics, view count, and watch duration.
• Google Analytics: Monitors website traffic and video content conversions.
• Social Media Metrics: Facebook, Instagram, and LinkedIn all provide thorough metrics for video posts.
• Video analytics: Provides comprehensive data on the performance and engagement of videos through Vimeo Analytics.
• Direct Customer Feedback: You can also track and analyze data by directly connecting with customers and getting their feedback about the corporate video production content. 

Additional Read:

About Us corporate videos: How to make them interesting?

4. Calculate Costs

To assess ROI, you must first compute the overall cost of creating and distributing your video content.

Expense Factors in Mind

• Production expenses: It includes (equipment, staff, actors, location fees, etc.).
• Post-production expenses: The post-production expenses include expenses (such as music rights, special effects, and editing)
• Distribution costs: It includes marketing efforts, platform fees, and paid advertisements, among other costs associated with promoting the video.
• Time and Labor: The time your team spends designing, developing, and distributing the video.

 5. Measure Revenue and Value

After calculating the expenses, the next in calculating the ROI is measuring the overall impact out of that video. The impact must be calculated based on your business goals. 

Like, what were your goals – is it brand awareness, higher sales, better understanding, higher engagement, etc and track the value generated accordingly? 

Generic metrics & revenue growth: 

• Tracking generic video metrics: The generic metric includes the number of views, likes, comments, shares, change in followers, etc.

• Direct Sales: Revenue generated by products or services sold as a result of the video.
• Lead Value: The estimated value of the leads generated by the video.
• Customer Lifetime Value (CLV): the long-term value of customers obtained through video content.

Qualitative growth impact: 

• Brand Awareness: A rise in recall and recognition of the brand.
• Customer Engagement: Improved loyalty and relationships with customers.
• Cost Savings: Because of content, other departments, such as customer assistance, saw lower expenditures. 

6. Calculate ROI

After determining the expenses and measuring the impact, the final step is calculating the Return on Investment (ROI) to understand the effectiveness of your corporate video. You need to look after the qualitative and quantifiable metrics. 

We will be calculating the direct impact through sales and revenue. While direct income is the main emphasis of traditional ROI, the qualitative effect is also very important for corporate success. 

• Sales & Revenue Growth: Assume a business spends $15,000 on the corporate video’s production and distribution. Following distribution, the video generates $40,000 in income through improved sales and new client acquisitions. 
• Monitor the website visitors & conversions: Monitor the growth in website visitors and assign a conversion value to each visitor. For example, if 10,000 extra visitors result in 200 new customers, each worth $50, the total value is $10,000.
• Customer Engagement Value: Higher engagement frequently leads to increased sales. For example, if the video increases engagement by 30%, resulting in a $5,000 sales rise, this is factored into the ROI calculation.
• Value of Brand Credibility: More trust leads to increased conversion rates. For instance, increased trustworthiness is considered in ROI if it results in a 5% improvement in conversion rates and $3,000 in additional income.
• Saving Money with Training and Support Videos: If a video reduces the number of customer service calls, put a value on the hours saved. For example, if making fewer calls saves $4,000 in customer service expenditures, this is considered ROI.

Total costs (production, post-production, and distribution): $15,000.

Direct Sales and Leads Revenue: $40,000.

The estimated value of qualitative impact is $22,000, which includes $10,000 for brand exposure, $5,000 for engagement impact, $3,000 for credibility, and $4,000 for cost savings.

Direct + Qualitative Value Generated: $40,000 + $22,000 = $62,000

𝑅𝑂𝐼 = Total Revenue − Total Expenses/Total Expenses × 100

ROI =  62,000−15,000/15000 ×100 =313%

7. Interpret and Communicate Results

Interpreting your ROI entails more than simply understanding the numbers. 

You need to constantly interpret and assess the impact of your video content based on your entire company’s goals, be it short-term or long-term. And, based on the results generated – you can plan your future video marketing champions and other

• Review Using Benchmarks: To assess performance, compare your return on investment to previous campaigns or industry benchmarks.
• Qualitative Insights: Take into account qualitative feedback and insights like reader comments and word-of-mouth, brand perception, social media comments, and customer testimonials.
• Impact over Time: Evaluate the long-term advantages of your video content, such as enduring brand recognition and devoted clientele.

You don’t need to just analyze the impact; it is important to visualize it as well and make future-proof decisions. Here’s how you can do it. 

• Reports and Dashboards: Create comprehensive reports and dashboards that communicate your findings clearly and concisely.
• Presentations: Use visual presentation, storytelling methods, and case studies to communicate your ROI to stakeholders effectively.
• Case Studies: Create case studies that illustrate effective video campaigns and how they affect your company.

Conclusion

So, here’s the wrap on why and how to calculate the ROI of corporate video production. Keep in mind that measuring the ROI of your corporate videos is an effective technique to know where your marketing is headed and make decisions accordingly. It is a dynamic process that necessitates ongoing optimization and a planned approach.

By consistently calculating the ROI and looking after the insights, companies can acquire important insights regarding the effectiveness of their video content. Never undervalue the importance of the insights these metrics offer; they will assist you in reaching your business objectives and making wise decisions for upcoming campaigns. 

If you are looking for a leading video production company that can help you with corporate video production and even tracking and with tracking ROI – then Krisha Studio has got you covered.