How to measure the impact and ROI of AI-video marketing campaigns Introduction
Gone are the days when marketing was all about word of mouth and conventional methods. Now the world of marketing is dominated by Video marketing and Artificial Intelligence. The introduction of AI in video generation has proved to be a real game-changer for brands and marketers. AI is redefining the realm of video marketing campaigns by enhancing customer experiences, high engagement, and producing high-quality content. The positive return on investment (ROI) that AI-powered video marketing delivers has reportedly already been observed by 96% of marketers.[1] Currently, 75.7% of marketers use AI technologies for business.[2]
How can AI help in video marketing? AI-video advertising campaigns are an effective approach to connect and engage potential customers through compelling tales and imagery. However, initiating and maintaining these projects may be tough, especially when determining their impact and return on investment (ROI) AI can be used as a valuable friend for marketers who desire to optimize their video marketing efforts and graze fruitful results. AI may also help with video distribution, targeting, customization, and optimization.
Statista reported that 41% of marketers expected to see a boost in revenue growth and better performance in 2020 thanks to AI. Another 38% linked the creation of personalized customer experiences to the use of AI in marketing. [3]
So, it's evident that AI-video marketing campaigns are not only creative and enjoyable but also a smart and successful way to meet marketing goals and generate ROI.
All fun and games it may sound but there is a catch! Most of the firms and businesses that use AI for their marketing campaigns are not aware of its optimum utilization which is leading to half-cooked results and lower ROI’s. To excel in the field with the help of AI one must be aware of the technicalities, to increase the ROI let's first understand what we mean by ROI in AI.
What is ROI for AI—
AI being a diverse field can provide a complex and unexpected return on investment (ROI). The financial aspect of ROI, known as hard ROI, is crucial for calculating the profit or loss compared to the investment cost. Yet, the uncertainty of profitability largely outweighs the uncertainty of when the investment will be made.
On the other hand, soft ROI considers a wider range of advantages, including employee satisfaction and retention, skill development, brand growth, and increased company reputation. AI can generate a hard ROI by saving time, increasing productivity, reducing costs, and boosting revenue.[4]
AI can provide both tangible and intangible benefits, such as enhanced customer experience, skill retention, and adaptability. Personalization can enhance the customer experience, and skill retention is crucial for organizations to effectively utilize AI technology. Despite the uncertainties surrounding AI, pursuing multiple AI initiatives can help develop new skills and address emerging opportunities and challenges.
(Source: Defining and measuring return on investment for AI: PwC)
Importance of measuring Video Marketing ROI—
As difficult as creating a video is, merely creating it is never enough. To be successful in video creation understanding it backstage party is very crucial. Measuring video marketing ROI is quite an essential part of the smooth running of your video campaigns. Behind one high-quality video, there goes days of thinking, hours of brainstorming, and a lot of effort. Although AI video generation tools have eased the process quite a bit there is still a need to curate just the right type of prompts select just the perfect image and finalize just the relevant video to get it all right.[5]
Unless you measure you won't know if the content you are putting forth is liked by your audience or not. That's why ROI assessment is useful. It provides you with useful statistics or data to assess your achievement, learn from it, and adjust future outcomes accordingly.
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KPIs to measure impact and ROI—
Key performance indicators or as we call them KPIs are the best guide in the ocean of video marketing. The success of your videos heavily relies upon the metrics and insights that KPIs provide as they help in figuring out the area of improvement. Yet picking out KPIs right and left won't be fruitful as we all know quality matters.
Depending on their objectives, various types of videos demand specific KPIs. For example, if you're developing an explainer video to present a new product, your KPIs may include average view duration, engagement rate, and conversion rate. For a brand advertisement, you may want to prioritize KPIs such as reach, impressions, and social shares.[6]
The idea is to correlate your KPIs with your video's objectives and track them constantly. This will not only help you quantify performance, but it will also provide you with ideas on how to improve your future video ads.
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Essential video metrics—
Video campaigns are an effective way for marketers to assess audience engagement and performance.[7]
Views: Views reflect how many times a video has been seen by people, whereas watch time counts how long they spend watching a video.
Watch time: Watch time, or the total length of time viewers spend watching a video influences the content's engagement and capture. Longer watch times suggest strong engagement and value, however, shorter watch periods may indicate that material or narrative should be improved.
Engagement rate: The engagement rate, which includes likes, comments, shares, and click-through rates, indicates how effectively the video connects with the audience and stimulates conversation.
Conversion rate: Conversion rate, which counts the number of viewers who perform a desired action after seeing a video, determines the video's success in driving business results.
By examining these analytics, marketers can improve their video ads and enhance engagement and brand loyalty.
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Mistakes to avoid—
Every AI-generated video is distinct in itself and the expected ROIs differ too. While going ahead with generative AI videos one must avoid these mistakes to get better returns.
Ambiguity in goals and metrics—Having ambiguous goals and metrics can lead to uncertain data and less effective results. Before distributing AI-generated videos the goals must be crystal clear in your mind and you should know the best measurements for it.
Unaccounted costs and benefits of AI—A detailed analysis of costs, cleaning, labeling data, and cost of developing and maintaining the AI models must be done beforehand. AI-generated videos can also bring significant benefits, such as reducing production time and costs, increasing
scalability and personalization, and improving customer satisfaction and loyalty. You need to weigh the costs and benefits of AI to calculate the net value of your AI-generated videos.
Not benchmarking against industry standards and best practices-- AI-generated videos are new, but there are already guidelines based on established standards and best practices. A study shows that companies with successful AI projects (achieving over 5% ROI) effectively implemented practices for data management, result tracking, and ensuring security, privacy, and ethics. AI leaders achieved an average ROI of 4.3%, while beginners only achieved 0.2%.[8]
Not testing and optimizing your AI-generated videos—One cannot leave AI videos on its own AI-generated videos require ongoing testing and optimization to meet your objectives and exceed your expectations. Continuously improving the quality and relevance of these videos can be achieved through diligent testing and optimization efforts.
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Conclusion
AI videos although relatively new have a visible impact on ROI with an amazing track record of improving brand awareness and higher conversion rates. To keep an eye on your video's impact on your market campaign it's important to monitor their performance now and then.
AI-generated videos have the potential to be an effective marketing tool when utilized properly. Nevertheless, it is crucial to plan and execute them meticulously to guarantee a positive return on investment. By steering clear of these typical errors in calculating ROI for AI-generated videos, you can fully harness the potential of this cutting-edge technology and gain a competitive advantage in your field.
A video with good storytelling and explainer videos is one of the most engaging videos that pull higher audiences and provide maximum ROI, Try PiePie AI to create one with minimum effort and maximum returns, at speed, at scale, and substantially reduced prices.
(Hyperlink PiePie by PiePie website)
[1] Video Marketing Statistics 2023 by MotionCue
[2] AI Survey: How 3,812 Digital Marketers Are Using AI in 2024 (authorityhacker.com) [3] Outcomes of AI-enabled marketing worldwide 2020 | Statista
[4] Defining and measuring return on investment for AI: PwC
[5] Measuring Video Marketing ROI: The Metrics That Matter (breadnbeyond.com)
[6] Video Analytics: Measuring And Analyzing Performance Metrics For Video Campaigns | Pepper Content
[7] Video Analytics: Measuring And Analyzing Performance Metrics For Video Campaigns | Pepper Content
[8] Driving ROI Through AI - ESI ThoughtLab (thoughtlabgroup.com)
