A Guide to Measuring the ROI of Your Promotional Video Production

You’ve invested time and money into a stunning promotional video, but now what? How do you know if it’s actually working? For many businesses, the biggest challenge after a video goes live isn’t promotion—it’s proving its value. Measuring the Return on Investment (ROI) of your video production is crucial for justifying your budget and planning for future success. This guide will provide a transparent framework for how to effectively measure your video’s impact and prove its worth.

The Quick Answer: What is ROI for Video?

ROI for a promotional video isn’t just about direct sales. It’s a measure of the total value generated by the video relative to its cost. This value can be a combination of quantitative metrics (like leads, sales, or website traffic) and qualitative metrics (like brand awareness and customer trust). The key is to define what success looks like for your specific business goals before you even start production.

The Deep Dive: Key Metrics to Track

To accurately measure ROI, you need to look beyond vanity metrics like views. Here are the core metrics to track, broken down by your business goal:

If Your Goal is Lead Generation & Sales

Conversions: Track how many viewers clicked a call-to-action (CTA) button in the video or on the page to sign up for a newsletter, download a guide, or make a purchase.
Lead Quality: Are the leads generated by the video turning into paying customers at a higher rate than other sources? Track their journey through your sales funnel.
Cost Per Acquisition (CPA): Divide the total cost of the video production by the number of new customers acquired directly from the video campaign. A lower CPA indicates a higher ROI.

If Your Goal is Brand Awareness & Engagement

Social Shares & Comments: Track how often the video is shared, and the quality of the comments it receives. High engagement indicates your message is resonating.
Brand Mentions: Use tools to monitor how often your brand is mentioned online in connection with the video.
Website Traffic & Time on Page: Track how many viewers navigate to your website after watching the video and how long they stay there. Longer viewing times on your video landing page suggest a high level of engagement.

If Your Goal is Customer Retention & Education

Support Ticket Reduction: For explainer videos, track if the number of customer service requests related to a specific topic decreases after the video is released.
Customer Retention Rate: Track if customers who watch your onboarding or how-to videos have a higher retention rate than those who don’t.
Positive Feedback: Use surveys or testimonials to gather qualitative data on how the video improved the customer experience.

Calculating Your ROI: Simple Formulas and Real-World Scenarios

To put it all together, here are two simple ways to calculate your ROI.

Formula 1: Direct ROI
(Total Revenue Generated – Video Production Cost) / Video Production Cost = ROI
Example: A company spends $10,000 on a video that generates $30,000 in new sales. The ROI is ($30,000 – $10,000) / $10,000 = 2, or 200%.
Formula 2: Value-Based ROI
This formula accounts for both monetary and non-monetary gains. You assign a dollar value to a metric like a new lead, a website visit, or a support ticket saved.
Example: A B2B company spends $15,000 on a video. The video generates 50 new qualified leads, which have a historical value of $500 each. The total value is $25,000. The ROI is ($25,000 – $15,000) / $15,000 = 0.67, or 67%.

Overcoming Challenges in Measurement

Measuring video ROI isn’t always straightforward. Here are a few common hurdles and how to navigate them:

Indirect Conversions: A viewer might watch your video, leave, and then come back to purchase days later. Use marketing attribution tools to connect these touchpoints.
Long Sales Cycles: For high-value products, a video might plant a seed that doesn’t blossom for months. Be patient and look for trends over time, not just immediate results.
Qualitative Value: How do you put a number on increased brand trust? Use surveys and track metrics like social sentiment to get a fuller picture.

A promotional video is more than just a creative asset—it’s a strategic investment. By moving past surface-level metrics and using a clear framework to measure its performance, you can prove its value, optimize your marketing efforts, and drive your business forward.