3 POINTS TO HELP DETERMINE A VIDEO CAMPAIGN BUDGET
Being a growth company, you’re striving to eventually create a predictable engine that helps grow your enterprise, as fast as possible. If money were no object, video would be in the mix, no questions asked.
But the term “video” is used so loosely these days.
Are you talking about a video sitting only on your website, speeding up your sales cycle for unique visitors? Or a video that is effectively driving NEW visitors to your site/outlets in order to ignite your entire funnel?
Either way, how do you budget for a quality video campaign? And how do you make it work within the budget of your entire marketing mix?
The variables that affect cost of a video are:
Duration– How long will your messaging stay the same? For most scalable companies it may be 18–24 months. The video(s) will be created as part of an ongoing campaign across premium publishing sites, paid-social and other alternative placements.
Target — Are we reaching a broad or narrow target, or perhaps a bit of both? This will affect the strategy and the number of videos needed to reach your specific customer segments and their various touch points. Their mental and emotional state must be matched by your video.
The rest of your marketing mix — Do you have a healthy diversification of marketing tools in your arsenal? Video should not be 100% of your marketing budget obviously. But it is incredibly effective at the top of your funnel when it reinforces your other marketing activities, like: seasonal offers, launches, PR tie-ins, events, direct response and keywords; although it may very well take over or completely replace aspects of your current mix over time. Most scaleups are relying WAY to much on bottom funnel SEO and SEM.
SEARCH DOES NOT SCALE.
Setting up realistic KPIs will help determine the campaigns performance, however, quantitative values alone can’t tell the full story. Important qualitative data can be achieved through surveys and retargeting campaigns to truly feel the pulse of the campaign. If customers don’t bite right away, but there may be a piece of information that would make “no” into a “yes.” So a video that handles sales objections, positions your brand and inspires and ignites the imagination?? rarely happens on a $3500 video budget… (Although there are plenty of freelancers who will try.) The point is… Customer acquisition and ROI makes the cost of a higher-end video irrelevant. What is key is scalability and growth once the test is proven. If your back is against the wall to prove to founders/investors that your company will indeed grow… then you have to go for it.
Of course, most of us operate on a top-down, fixed budget. We know what we have to spend; we just need to know what we can get for it. The truth is, video campaigns can be quite affordable investments. The trick is to find the right ratio within your marketing mix.