Does a multilingual video pay off? Learn how to calculate the ROI of your videos!
Before you invest in video marketing, there's always the question: does video marketing really pay off?
The answer is yes! Two different studies point to the same direction. One study by the Aberdeen Group shows that video marketing professionals are expecting a 54% higher brand recognition. And also the Social Video Forecast indicates that 76.5% of marketing professionals and owners of small companies are receiving better results with video marketing.
The advantages don´t stop here, as a multilingual video is not only more efficient in transmitting a message but it is also more economic. "In the case of multilingual videos, there is a distinct advantage in the production costs, as it is way more economic to produce one video in two languages than to do two videos.", explains Marcel Ghiraldini, professor for digital marketing and vice president of Growth & Strategy at Math Marketing.
The facts mentioned above leave no doubt in the efficiency of multilingual video marketing. But how do you calculate the outcome? In digital marketing you can calculate almost every advantage of an online strategy.
Today we'll talk about ROI - Return On Investment - in multilingual video content marketing. The ROI calculates the profit or loss from a marketing strategy done in a certain time period.
An important step to calculate the ROI is to define your company's video marketing objectives. This marketing content includes vlogs, interviews, tutorials, presentations, demonstrations, product analysis, testimonials and advertisement.
If you want to achieve a certain goal, like increasing your views on the videos, you'll need to calculate the financial value of every action - views, shares, comments, etc.
The ROI formula is basically composed of the investment costs and its turnover. Those two variables don't come alone, they come with a series of data that will help with the calculation.
The investment is based on the following costs:
- Video hosting service;
- Content production - dubbing and translation;
- Employees - salaries;
- Promotion and distribution channels - social media, e-mail, landing pages;
- Paid distribution channels - Facebook Ads and Google Adwords;
- Image data banks;
- recording equipment for video and audio;
The turnover data depends on the goals you've set for your strategy, but mostly they include the following:
- Views and page views;
- Views on website;
- Organic traffic;
- leads conversion rate - total number of leads / total number of views *100;
- Number of sales;
- Number of customers;
- Clients conversion rate - total number of clients / total number of leads *100;
- Average customer turnover / leads / website views / video views;
Most of these data can be analyzed with the aid of tools like Google Analytics. You will need to set a financial value to each of them.
ROI formula = turnover - investment / investment
Let's assume you invested R$ 40 million for multilingual video marketing in one year. During this time, the strategy generated 120 sales with an average value of R$ 500 per sale, meaning the turnover sums up to R$ 60,000 (120*500 = 60,000). Now let's put those numbers in the formula:
ROI = 60.000 – 40.000 / 40.000
ROI = 20.000 / 40.000
ROI = 0,5
If you prefer your result as percentage just multiply the result by 100. In this case, the ROI would be 50%. So for every invested real into the strategy, you'll receive 50 centavos back in profit, which is a very good result!
The formula never changes, only the values according to your applied strategy and investment.
I hope you can profit from this article!
Wilgen and the alugha team!