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.