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How $8k in Video Marketing Can Earn a Brand $34m ROI

Updated: Mar 20

How much of a risk is video marketing? Does it earn a good return on investment (ROI)? We reviewed a sample animated explainer video to find out.

Below is an explainer video we created for Manad Plus:

They explained their complex value proposition to us for aged care nursing staff, struggling under the immense workload and pressures of managing aged care facilities and who need the Manad Plus software to make their lives easier.

We took the information they gave us, put together a script, sourced and directed a voice over and animated a 2 minute video for them. All up, including the reusable logo sting, the job cost them $8k.

12 years later, that video is still on their homepage.

Considering the statistic that a video on a landing page can increase conversions by up to 80%, we calculated that a company like Manad Plus adding that video to their homepage would have increased their revenue by up to $34m over that time, including adjustment for inflation.

Now, we want to stress a few things here...

  1. Manad Plus is a great business that provides great software and they are the ones responsible for their own substantial success, mainly by supporting good people and caring about their needs. This article isn't so much about them, but more about the ROI of good video marketing in general.

  2. When we say up to, we mean it. In reality, a lower proportion of revenue is attributed to a homepage video. A homepage video is not technically a landing page video and 80% is about the highest ROI possible. Bear with us though, we're going somewhere with this...

  3. This article is based on rough estimates, not on Manad Plus's actual revenue data. We are using Manad Plus as an example to make a grander point about the ROI on good video marketing.

Do you know what percentage of conversion increase would allow 100% ROI on a company like Manad Plus making an $8k investment 12 years ago?

0.02% increase in conversions.

That means, to justify an $8k expenditure, a 0.02% increase in conversions would be needed. That means for every 10,000 conversions, they would need an extra 2.

But that's over 12 years. Be realistic!

Okay, to break even in a year, the increase in conversions needed would be 0.28%. That's 28 extra conversions for every 10,000.

That's the minimum to justify the expense, but it wouldn't be very profitable. You'd probably wipe the sweat off your brow, count yourself lucky and never invest in video marketing again.

So what's the best that could happen?

Again, using the statistic, for argument's sake, of up to 80% increase in conversions, the best that could happen is:

80 more conversions for every 100. Or 8000 more conversions for every 10,000.

For Manad Plus, a company of 11 people, that would be an ROI of up to 28,900%.

In the first year.

But this video didn't sit on their landing page for one year, or two. It stayed on their landing page for 12 years and counting.

That's up to 424,791% ROI.

ROI % on video investment

Again, however, this is up to. That's not so much of a concern though, when you consider the gap between breaking even, and the potential ROI.

See the red line in the chart above? No? Look closer. It represents making $0. The yellow line represents making 100% ROI on the $8k investment. The reason you can't see the red line properly is because, relatively, they're basically the same thing.

Everything beyond that is profit.

It's a sales cliché, but if I asked you to give me $10 and I'll give you $2,890 a year later, would you brag to your friends about the sucker you've got on the hook?

More than that, if I asked you to give me $10 and I'll give you that much every year for the next 12 years, including adjustments for inflation, resulting in a total of $42,479 from a $10 investment... well you get the point.

Even if you didn't get that much return, and you likely wouldn't, you'd still feel sure that it was a highly worthwhile investment.

And the bigger the business, the more leverage, the higher the return.

So let me leave you with one final question - what do you want your revenue to look like a decade from now?

ROI comparison on video investment

Let us make your next landing page video

Investing in a high quality production service is crucial to increasing your conversions. If your landing page video is 50% as good as it could be, you could only get 50% of your potential conversions. As you can see, that makes a pretty huge difference.

This case study demonstrates that you should prioritize getting your video right, over choosing the cheapest option. We're equipped with over a decade of experience across 30+ diverse industries, we're experts at communicating complex offerings through simple high quality video and we're reliable to get it right, time after time, while still remaining affordable.

Speak with us today to discuss creating an asset for your business that increases your revenue for years to come.


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