Video marketing is one of the fastest growing content marketing trends, accounting for 69% of all consumer traffic in 2017. Therefore, it would be a good idea to incorporate this trend into your marketing strategy. Video has a higher conversion rate than any other medium as it has a powerful psychological influence over viewers. Still not convinced? Look at the statistics:
- 74% of marketers say video content is more effective than any other marketing medium
- 73% of consumers are more likely to make a purchase after watching a video
- 96% say online videos are helpful when making purchasing decisions
- 71% say watching online video content leaves them with a positive impression of the brand, service or company.
Now that we have established that video content can heavily influence purchasing decisions, how do you make a video campaign come to life financially? When launching an ad campaign on YouTube, it can easily seem very overwhelming to determine an appropriate budget. This is especially the case if you are not familiar with Google Adwords or what a bidding process entails. However, it is not too complicated if you break down the components.
Many businesses today use Google Adwords. Utilizing Google Adwords is beneficial for companies because it allows them to have total control over their budgets. Google Adwords operates on a cost-per-view system (CPV), which is a way of charging for an advertisement based on the number of views or interactions it received. One major benefit of using Adwords instead of other bid-based platforms, is its cost-per-impression feature (CPM). Essentially, Adwords will not charge you for the view if the user does not watch the first 30 seconds or interact with the advertisement. With this feature, you you can ensure that you are only paying for ads that are actually watched or interacted with by users.
The first step towards determining your CPV, is deciding on your monthly budget. If you set your monthly budget at $300, then you must divide that number by the average number of days in one month, $30.40, yielding a budget of $9.87 per day. After this step, you have 2 options:
- Divide your daily budget of $9.87 by the number of views you hope to receive each day. For example, if you determine that one view is worth about $0.15, then you would input your CPV as that amount. With that number, you could get about 65 views per day.
- Divide your budget of $9.87 by the number of views you are hoping to receive to calculate your max CPV. If you want 100 views per day, divide $9.87 by 100, and you would get $.099 as your CPV.
Do not feel pressured to put a lot of money into your Adwords campaign. Start small and wait to see if you get a return on your initial investment before you increase your budget. Many organizations have had successful ad campaigns while working with a small budget. For example, the Agency for Toxic Substances and Disease Registry (ATSDR) launched a nationwide No Trespassing Initiative on a tight YouTube ad budget. The primary purpose of the campaign was to inform the public about the dangers of trespassing on abandoned properties. Their 15 second Public Service Announcement would have been too expensive if it were broadcasted on television, so the ATSDR decided to broadcast the PSA as a paid, non-skippable advertisement on YouTube. The ad ran for one month in the fall of 2015 and again in the spring of 2016. By the end of the campaign period, the PSA had accumulated over 3 million impressions at an average cost of only $0.02 per impression.
Written by Angelika Johns