Today, Brightcove and Demand Metric released a first-of-its kind Interactive Video Benchmarking Study. It’s filled with helpful, actionable research and reveals one surprising misconception – while marketing professionals report amazingly high levels of effectiveness and satisfaction with Interactive video, they curiously struggle to answer this simple question:

WHAT IS THE ROI OF INTERACTIVE VIDEO?

The answer actually is quite simple. And we’ll show you how to calculate interactive video ROI using specific examples from our customers.

First, let’s summarize the key findings.

KEY FINDINGS

  1. Interactive video is mainstream. 32% have begun to use the technology.
  2. It’s owned by Creative Marketers. 60% are Marketing, Creative or Content Mgrs / Execs.
  3. The average annual spend is $30k – $40k annually.

And buried inside the report is the final, and we think most important, key finding:

  1. The more you use Interactive Video, the more you find applications and benefits for it. Look at page 21 of the report. 68% of people who use interactive video see the importance as growing. 2% see it as shrinking. That’s rare for a new technology.

THE MEASUREMENT PROBLEM

OK. So people use it. They love it. They want more.
There are clear benefits and activities.

So calculating the ROI should be easy, right?

Here we reach the measurement problem. Right now, what stats do you normally track for your videos? Number of views? Average view time?

These are nearly useless when using video for marketing and determining ROI.

This lack of measurement and accountability has been the core frustration that our customers voice over and over again. Flint McLaughlin, CEO of MECLABS said it best, “I’ve had a vision of the HapYak interactive video platform for 20 years. I’ve been looking for something that lets video transcend its own limitations.”

Calculating Interactive Video ROI

At HapYak, we notice a different focus on video analytics from our customers. They treat video like the rest of the web. They,

  • track click-through-rate (CTR) from a video to a landing page
  • track submission rate of in-video polls and surveys
  • track the true engagement of individual leads and prospects (including dwell times, skips and rewatches of specific sections)
  • track direct answers to questions (at a user and audience level)
  • track viewer navigation rate to specific sections of the video (“Oh, interesting. This prospect watched the benefits and pricing section of the video twice.”)

That’s the power of the medium of interactive video. Behind each interaction is a data point and each data point feeds a system of intelligence that lets you track leads, prospects and customers like never before and calculate its ROI.

PLANNED APPLICATIONS OF INTERACTIVE VIDEO

The report identifies the top four current or planned activities of Interactive Video which are all fundamental to one’s sales and marketing strategy.

MECLABS: MIDDLE-OF-THE-FUNNEL V

MECLABS develops real-world research to help businesses get better use out of sales and marketing technology and resources, including Internet marketing, website optimization, and lead generation and nurturing. Their research has been cited in 13,000 sources including The Economist and Harvard Business School.

Four years ago they focused on disseminating their research through the medium of video. They built a studio. They hired video professionals. But something was missing: A way to track their success.

Luke Thorpe, Senior Manager Multimedia Production put it plainly. “We knew in our core that video was effective but we had no way to prove it.”

So they decided to create interactive videos with in-video surveys and focus on Submission Rates of those questions as the core metric for their video success.

In video quiz example

MECLABS has developed very clever ways to subtly introduce these surveys into their videos. And then they use the specific answers to nurture leads through marketing automation.

Because they have a wealth of data to value a qualified lead by, they can finally connect the activity of a video viewer to established marketing metrics. Goodbye views. Hello leads.

And according to Luke the uses of interactive video are expanding across the business. “Marketing, sales and training will all be using it.”

Bottom-of-the-Funnel Video

MECLABS is a clear example of a trend revealed in the Demand Metric report.

When you look at the benefits of Interactive Video, the more they use the technology, the more the benefits are focused further down the funnel.

Interactive Video Benefits Infographic

And of course, the further you go down the funnel, the easier it is to quantify the success. What’s the value of qualified lead to you? A demo with your sales team? A new customer?

As Flint McGlaughlin laid out in his vision, Interactive video is an enabling technology – allowing video to transcend its own limitations and produce direct quantifiable business results.

Calculating Interactive Video ROI

So let’s bring it back to you. How can you calculate the ROI of your Interactive Video rollout?

At HapYak we serve more interactive video than anyone but YouTube – with 425 million interactive video data points tracked this year alone.

We’ve begun to dig into this data and reveal simple benchmarks you can use to estimate and calculate ROI. These initial Benchmarks are taken from 13 million interactive video views.

Benchmarks Interactive Video Infographic

We use these benchmarks internally to estimate the number of leads and qualified leads we’ll generate per 1000 views.

1000 views * 62% Submission Rate * 5.5 Qualified Leads per 100 Submissions = 34 Qualified Leads.

These Qualified Leads activate the sales cycle. We alert the inside sales team when leads have indicated strong interest from the video and push these qualified leads into our CRM, Salesforce.

Properly integrating this technique with Marketing Automation and Email Marketing systems results in a steady stream of qualified leads for a predictable price.

It’s important to note that these are early days when it comes to interactive video benchmarks. Specific CTR, Submission and Navigation Rates will emerge for each type of video – top, middle and bottom of the funnel.

We’ll be refining our benchmarks with this in mind and will be sharing these values publicly to help us all determine the ROI of interactive video.

Facebook
Google+
https://corp.hapyak.com/resources/calculating-interactive-video-roi/
Twitter
LinkedIn