Research Study Proves the ROI of Video
An Aberdeen Group research study on the ROI (Return on Investment) of video reports that on average, 92% of respondents report video as a component of their content marketing. The number by itself isn’t too surprising. When compared to the other types of content development companies consider though, it is by far the most important type of content. For example, company-authored white papers are second behind video with only 74% of companies saying they intend to use them. Everyone is shifting to video, but are they doing it well and is it paying off? That’s where the ROI question comes in.
To answer the question, the study compared the companies that used video as a component of their content marketing to companies that didn’t. They found that the average website conversion rates for companies using video was 4.8%. Non-video companies had an average conversion rate of 2.9%. The difference doesn’t seem that significant. What could 1.9% amount to after all?
Aberdeen made some assumptions to quantify the difference based on information from respondents. The result was that the non-video users would spend an additional $8000 (£4857) on average to obtain the same number of leads. Therefore video reduces the cost per lead.
On the other side of that same coin, the video users would require 37% fewer unique visitors to achieve the same number of leads (unqualified). In terms of ROI, less cost per lead and fewer visitors to obtain those leads are both important factors that ultimately impact company revenue.
While these numbers are all averages and calculated based on a variety of statistics and companies, they make a good case that investing in video can definitely increase conversions, leads, and the bottom line.
Are you using video yet? If not a great place to start is by looking at our market sectors list which will give several examples of how video benefits businesses in a number of sectors.