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Explainer Videos and ROI: What Marketers Should Know

October 23, 2023

Explainer Videos and ROI: What Marketers Should Know

Return on Investment. It’s one of the big questions you probably ask yourself a lot when researching. Are explainer videos good for ROI? Well, the short answer is: Yes! But of course that’s easy for us to say. We make explainer videos. But we wouldn’t if there wasn’t a need for them. And, to bring it full circle, there’s a demand for them because explainer videos are good for ROI! Last week we gave you some helpful stats around ROI, and this week we’ll go over how to really get the most out of your explainer video and get the best ROI (along with some more stats).

Some More Statistics

So, let’s get some of the statistics out of the way. In addition to the ones we’ve covered before. We found this great report from Wyzowl about video marketing in 2023. So we thought they’d be helpful for you too!

– 96% of marketers continue to value video as an ‘important part’ of their marketing strategy.

– 96% of video marketers say video marketing has increased user understanding of their product or service.

– 95% of marketers say video marketing has helped them increase brand awareness.

– 90% of marketers say video marketing has helped them generate leads.

– 92% of marketers say video gives them a good return on their investment (exactly what this blog is about!)

Have a Clear Goal

So now you’ve seen the why about ROI. But now how do you make sure that your explainer videos are good for ROI? There’s a lot of ways to work toward this. One of those is to ensure you have a clear goal for your video. Hey, that’s something else we’ve touched on before. It’s almost as though our entire blog is a great source of helpful marketing tips. But we digress…

If you want to ensure your explainer videos are good for ROI, having a focused video is important. That doesn’t mean you can’t do a general brand awareness explainer video. You can! And we make those all the time. But it’s important that your team is on the same page with what you want to accomplish. Your company probably does a lot of different things. So naturally if you’re investing in an explainer video, you’ll want to talk about all of those different things. However, a kitchen sink approach like that just makes your video feel scattered and unfocused. So it’s good to think about whether you maybe want to focus on your biggest offerings that really make your company what it is. Or you could focus on a few of your offerings that don’t get a lot of attention so you can drive sales to that. As long as you stay focused, there’s no wrong answer.

CTAs and Landing Pages

So once you have a great video, how do you use it to get conversions? How can you know what’s driving your sales and that your new explainer videos are good for ROI? Well, CTA’s and landing pages, of course! CTAs, or your call to actions, is basically what you want your customer to do after watching your video. Do you want them to call a rep? Should they sign up for a free demo? Do you just want to get them to your website? What you want them to do affects how you’ll look at your ROI. 

That’s also why having a dedicated landing page is important. Let’s say you want them to sign up for a free demo. What you’ll want to do is create a specific landing page where they can go for that demo. Then, based on the traffic to that landing page, you’ll be able to tell how effective your video is. And by giving potential customers a call to action and a dedicated place to drive them to, you’ll be able to get more conversions as well as track those conversions.

Video in Social Media

Social media is a great place to utilize explainer videos. Did you know that  93% of brands got a new customer because of a video on social media? With the rise in popularity of TikTok and Instagram pushing more videos now, it comes down to knowing how to make the algorithm work for you. People tend to spend more time looking at video (even when they don’t finish it) than they would on an image. And then the more time someone spends on a video, it ends up being pushed to more people. That ultimately leads to more clicks and shares for you, which drives sales. And that’s hopefully to a landing page where you can really see how explainer videos are good for ROI. See how it all connects?

Brewing ROI for Explainer Videos

What do you think? Are you still trying to figure out if explainer videos are good for ROI? We sure hope this blog has helped you see not only that they are, but actually how to best utilize explainer videos so you can get the biggest return on your investment possible. As you go through the process of creating a video with Digital Brew, that’s something we’ll talk about too. Where the video will live, how you’re going to utilize it, etc. And because we’re the video marketing experts, we’ll always make sure to guide you so your new explainer video converts the way you want it to. If you ever want to discuss more marketing tips, or learn a little bit more about the process of creating an explainer video, you can always reach out to us here.

Let’s Brew This!