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WHAT VIDEO DOES WELL

Major motion media projects such as live-action video do some things very well. Here is what video does best:

Take viewers where they cannot normally go.

Allow viewers to experience things they cannot normally experience.

Introduce viewers to people they would not normally be able to meet.

Communicate major themes as a way introducting a large audience to something.

Increase the impact of other media by increasing awareness or understanding.

Set an emotional context within which the viewer receives other communication.

Ensure consistency of a repeated multi-layered message.

In these situations, motion media is almost always a cost-effective solution with a sizeable ROI over the tool's lifetime. See the examples below for how this might be calculated.


TIMES WHEN OTHER MEDIA MAY BE BETTER

Sometimes people ask motion media to do things that other types of media tools might accomplish better. When you need to accomplish any of the following tasks, other media is usually a critical component of your communication campaign.

Deliver a large quantity of detailed information. (But, there are exceptions.)

Communicate with a very small audience.

Distribute a message insufficiently budgeted for motion media to be effective.

Click here to take a look at how we may be able to help you with non-motion media.

Unless your project requires absolute personal experience, because of the power of motion media you should always at least consider it as part of your communication strategy.


THREE HYPOTHETICAL EXAMPLES OF ROI CALCULATIONS

Example One: Specialty Dental Clinic (>39%)

An established pediatric dentistry office that needs three new patients monthly to keep its patient load consistent spends almost $300 to acquire a new patient. One of the major factors in this cost is informational introductory appointments that are done at no-charge. At the dentists' normal billing rate, each visit costs $250 plus additional staff resources. By spending $15,000 on a marketing video distributed online, patients are more ready to book their first dental appointment without meeting the dentist first. Because of this, the booking staff is able to reduce requests for informational appointments by new patients by 75%. Thus $900 in monthly expense is reduced to $225, generating an additional $675 of billable hours per month. Assuming the media tool has a 36-month lifespan and the opportunity cost of cash is 5 percent, the cost of the video is about $485 per month. Therefore, the ROI, from just this benefit alone, is 39%.

Example Two: Statewide Non-Profit Organization (>161%)

A state-wide organization headquartered in Richmond, VA represents the interests of commercial property owners throughout Virginia. The organization hosts a reception for state legislators where a carefully designed motion media loop plays in the background restarting every four minutes. The production cost $18,000. Every 15 seconds, one of four key messages is emphasized differently each time it repeats. The average legislator stays for 20 minutes, thus being exposed to each of the key messages up to twenty times. Because the legislator is only paying partial attention, he or she may only catch each message three times. On a key bill which generated an average of $1,500 of tax savings annually to commercial property owners, a political communication consultant estimates that the motion media production represented 2 percent of the reason the bill passed. The association estimates that commercial owners statewide will save $4.7 Million during the first two years of the legislation's approval. Therefore the benefit attributed to the media production is $94,000, or $47,000 per year. The first year ROI alone is 161 percent.

Example Three: Five-store Retail Operation (65%)

The management of a high-end bakery operation with five retail outlets conducts a study of the sales effectiveness of its customer service team. In a small test, the CEO of the company drops by one of the sales counters for 5-minutes every Friday morning for two months. Adjusted for the annual increase and seasonality, an analysis shows that the representatives on duty during the CEO's visit increase their revenue generation by 3 percent. Each location generates $600,000 a year in sales, so a 3 percent increase will mean an additional $18,000 in revenue per location, or $90,000 company-wide. The company hires a production company to film four messages from the CEO each month which are then distributed to the stores on Friday mornings and are shown several times over the weekend to employees starting their first shift of the week during clock-in. The productions cost $2,500 per month, or $30,000 per year. The bakery operates at a 55% gross profit percentage, so the additional gross profit associated with the $90,000 increase in revenue generated from the investment is $49,500. Therefore, the gross profit ROI is 65 percent.


OTHER THOUGHTS TO CONSIDER

This information and these examples are just a start to thinking about how motion media can boost your organization's ROI. Every project is different and we can often think of ways that the media investment can be reconfigured to lower its per use investment cost, thus increasing the ROI. For example, in the third example above, the CEO's pep talk to the sales associates could be re-edited quarterly for $500 to become an e-mailed video message to the company's vendors. If this generated better payment terms, discounts, or preferential treatment by vendors another return could be generated for almost no additional investment.

So that we can help you accurately figure your ROI, please contact us.