How to calculate the ROI of you explainer video - Clarity Animations

How to calculate the ROI of you explainer video

Marketers live and die by their budgets. If you’re not keeping careful track of how much you spend on your marketing stack, and how much return it’s bringing you, then you’re doing something wrong. You need those numbers in place so you can optimise and start to scale.

Video marketing spend is no different. It’s important to know exactly what value you’re getting out of an explainer video so you can further invest when you feel it’s time to scale. Some benefits of explainer videos are very easily quantified. Others, unfortunately, are much more abstract and require a nuanced approach.

Let’s discuss some of the finer points of video ROI.

The simple part – conversion rate

The simplest, yet perhaps the most reductive, way to measure the ROI of your video is to A/B test your landing page. A split test will show you exactly how many users convert with and without your video. Multiply the difference by the total value of a converted lead and there you have it – a basic numbered value for your video ROI.

There are, however, a number of benefits that a simple split test won’t capture. For example, what happens if a user bounces from your page after watching the video, but later returns to purchase your product. How do you measure the added clarity on your product offering and extra conversion triggers?

Segmenting return visitors

This is a tricky question and requires us to think more closely about our test results. One method to test return visitor effects is to segment your results to show new converting visitors vs returning converters. If you see a similar increase in conversion across both groups, we know that your video is having an impact. Averaging these two results out will give you an estimated improvement that you can then factor into an ROI calculation.

Share value

Video is a shareable asset, and it’s very likely that your users will share it amongst themselves, especially if you add it to video sites like Youtube and Vimeo. In this case, not only is your video working to convert users, it’s also working to bring more traffic to your site. This value needs to be added into your overall figure.

First, make a list of all the different places you’ve posted your video. Then, head over to your site analytics platform and filter your results by the sources you identified. Grab the total traffic generated by your video and multiply it by your landing pages’ total conversion rate. You should end up with a smaller fraction of your starting figure. Multiply this figure again by your average value for a converted lead, and voila – you have the total value of your video as a traffic generation source.


If you work in a startup then chances are you’re hoping to catch the attention of potential investors. This is a difficult game and requires you to communicate the value of your product and your company with crystal clarity.

It just so happens that explainer videos are excellent at catching the attention of potential investors both online and in pitches. This means that the potential ROI of your video could be as great as the total investment value of your business. By communicating complex product offerings succinctly you can drive home the value of your company and win over angels and VCs alike.

Brand building

Now we’re getting into more abstract territory. There are a tonne of benefits from video that can’t be easily quantified. Chief amongst these are the brand-building effects that an explainer video can garner. Having an event? Throw your explainer video up on the screens. Your sales team needs a quick product rundown for a client? Ping the video their way. Want your product featured in an affiliate site? Ask them to host your animation. A quality video will help you stand out from competitors in any arena.

The final word on ROI is that, whilst it is possible to extract numeric benefit values from your videos, you’ll never get a comprehensive overview of the whole. After all, the benefits of video are as much about how you use it as is the quality of the end product. With great distribution, a comprehensive usage plan, and effective placement, the potential ROI of your video could be limitless.