Do The Math To Determine If Video Makes Sense
You can determine with near statistical certainty what the results of video will be, before you spend a dime. It’s easy, all you need is some basic marketing information from your website and business records.
Specifically, you need to know two things. First, what is your end goal for video? For most of our clients, the answer is converting new customers. Your end goal could also be educational, or brand recognition. Second, you need to have an understanding of how you are reaching customers now. If you have a website with Google Analytics, you probably know the answer already.
Consider the following estimate, using a fictitious Dentist Office as the client…
- ABC Dentistry receives 1000 website visits monthly on average.
- ABC Dentistry receives 50 new customers monthly on average.
- Approximately 20 customers come from walk-ins.
- Approximately 10 customers come from referrals or word of mouth.
- Approximately 20 customers come from website traffic.
- An Average Customer is worth $5000.00 over 2 years for general services.
Using the above information about ABC Dentistry with industry stats, we can determine how much video is worth to a client and how effective it is. A video package that includes a base marketing included costs ABC Dentistry $5000.00 for 5 videos, optimization and support.
- 5% of video ad viewers visit the company’s website, higher than other ad formats.
- Over 2 years, videos net 900 NEW Website clicks based on current Pay Per Click (PPC).
- For ABC Dentist, 50 Website Visits Result in 1 new customer booking.
- Therefor, ABC Dentistry spent $5000.00 and attracted 19 new clients with video.
$5000 in marketing spend nets ABC Dentistry over $90,000.00 in revenue, with very little risk. The numbers look great, and the likelihood of success is very high, because ABC Dentistry had a great website and was able to successfully convert 1 in 50 website visitors.[/fusion_text]
Extra Value From Video
The series of videos also increases visibility for ABC Dentistry on Google and are featured in that clinic’s reception area to walk-in patients. Video Testimonials captured during production also improve referrals and the clinic’s reputation as a service leader. Later on, video may be used in other ads in nearby restaurant television systems, at a local movie theatre or even on television.
The Final Result
Five unique videos cost $5000 total, split over 2 x $2500 payments. The videos produce 5000 unique impressions, 1500 full views and over 900 website clicks, resulting in the $90,000 or more in new business over 2 years during the initial campaign. Over the lifetime of the video, every additional click could result in a potentially rewarding new customer. Account for SEO improvements and reputation/brand improvements over time, which are harder to measure, and the number is higher still. With educational videos targeting orthodontic procedures, the number goes up again. Simply put, the campaign is successful, even if it only works a fraction as well as we’ve described. With additional marketing spend, the sky is the limit.
In this case, ABC Dentistry earns about $90,000.00 in revenue over 2 years with video marketing from new patients. They also improved their reputation in the community thanks to educational videos and video testimonials that build trust with new patients. Video works by converting web traffic into high value website visitors. All results are fully trackable and easy to follow. No other digital ad format provides the reliability, versatility and power of video.
The math makes sense for ABC Dentistry. Does it make sense for you?