In this crazy world of digital marketing, where every penny counts, understanding the return on investment (ROI) of your explainer videos is paramount.
Explainer videos are a powerful tool in the marketer’s arsenal, capable of simplifying complex information, capturing attention, and driving conversions.
But how do you determine if these videos are truly delivering value for the resources allocated to their production?
Measuring ROI is not just about counting views or tracking likes – it’s about assessing the real impact your videos have on your business objectives.
This guide delves into the key metrics and strategies required to accurately assess the ROI of your explainer videos.
With our expertise, we will walk you through the essential metrics that capture the full spectrum of your video’s performance, ensuring that you’re not only meeting your goals but also proving the tangible benefits of your investment.
Key Metrics to Track
1. View Count
View count is, without a doubt, the most straightforward and easiest metric to track. It measures the total number of times your video has been viewed.
While on the surface this might seem simple, its significance runs deeper. A higher view count signifies greater reach, suggesting an effective initial interest in your content.
In 2025, 73% of video marketers have created explainer videos, making this the most popular singular use case for video marketing (Wyzowl).
However, it’s crucial to understand how different platforms count views. For instance, YouTube considers a view after 30 seconds, whereas Facebook counts it after just three seconds. This distinction can greatly impact your analysis and should be factored into your evaluation strategy.
Understanding these nuances can help you make better decisions regarding where to host and promote your videos to maximize reach and engagement.
Our insight: In our experience here at Wyzowl, the platform on which your video is hosted can dramatically influence perception and reach. For our clients, we’ve found dedicated business video hosts (such as Wistia or Vimeo) can sometimes provide more accurate insights tailored specifically to ambitious brand goals.
2. Engagement Rate
Engagement rate goes beyond just numbers; it measures how actively viewers interact with your video through likes, comments, shares, and, perhaps most importantly, the average watch time.
With videos on social media generating 1,200% more shares than text and images combined (ZipDo), this metric offers a window into the audience’s level of interest and the relevance of your content.
Remarkably, 66% of video marketers quantify ROI through video engagement, such as likes, shares, and reposts (Wyzowl).
An elevated engagement rate is a positive indicator of how well your video resonates with your audience.
To enhance this, it’s beneficial to encourage interaction by prompting viewers to comment and share, crafting interactive content that invites participation, and directly speaking to your audience’s interests and needs. The more engaging your content, the more likely viewers will be to spread your message.
Our experience: Based on the vast number of explainer videos Wyzowl has crafted, engagement rate serves as a pulse-check on content effectiveness. We always recommend clients to keep their audience at the center of the narrative, ensuring relatability and relevance.
3. Click-Through Rate (CTR)
Your video’s click-through rate (CTR) is a crucial metric that shows the percentage of viewers who click on a call-to-action (CTA) link embedded in your video ad or click to watch your video generally.
Including video in an email can lead to a 200-300% increase in click-through rates (VideoMarketingInsider). CTR is a direct indicator of your video’s efficacy in driving traffic to your website or landing page.
To boost this metric, incorporate clear and compelling CTAs within your videos. They should be relevant to the video content, succinct, and strategically placed where they can’t be overlooked.
An effective CTA is the bridge between engagement with the video and tangible action, reinforcing your video’s role as a conversion tool.
Our insight: We advise strategically positioning CTAs for maximum impact. Short-form videos with high CTRs often use compelling storytelling to build a natural path to action.
4. Conversion Rate
Among all metrics, conversion rate holds critical significance as it measures the percentage of viewers who complete a desired action – be it a sale, sign-up, or download – following a video view.
Explainer videos are instrumental here, as studies show including a video on a landing page can boost conversion rates by up to 80% (WordStream). It directly reflects the video’s impact on your overall business objectives.
Elevating your conversion rate requires a well-defined CTA that aligns with the audience’s expectations.
It’s also essential to optimize your landing pages to ensure a seamless transition from video to action, and to analyze viewer behavior for insights on improving the conversion journey. Every conversion signifies a triumph in leveraging video as a tool for tangible growth.
Our experience: We’ve observed that explainer videos tailored to specific audience pain points often show remarkable conversion rates. Understanding your audience’s needs is crucial. This is why we suggest creating multiple targeted videos over 1 general video.
5. Retention Rate
Retention rate provides insights into how engaging your content truly is. It measures the percentage of viewers who stick with your video from start to finish.
The average user spends 88% more time on a website with video (ZipDo), showing the power of engaging content.
To improve retention, focus on creating high-quality, concise videos with clear messaging right from the start. Hook your audience early and deliver value consistently throughout the video.
Being concise doesn’t mean less information, it means streamlined, impactful communication that respects your viewer’s time while delivering your message effectively.
Our insight: From crafting thousands of videos, we’ve learned that clear, engaging beginnings are key to video retention. The first few seconds must captivate and reassure the viewer of the value. We also recommend keeping your video short so the viewer wants more rather than gets bored and clicks away.
6. Social Sharing
Social sharing is the modern-day multiplier of video reach, tallying the number of times your video is shared on various social media platforms.
A staggering 66% of consumers find short-form videos to be the most engaging content on social media (Zight). It’s a testament to your video’s perceived value and appeal, as sharing inherently means endorsement from viewers.
To increase social sharing, videos should boast catchy titles, captions, and CTAs that motivate viewers to share.
When a viewer shares your video, they give it a stamp of approval, which can exponentially expand your reach. Encouraging audiences to share can widen your influence and introduce your message to untapped segments.
Our experience: Encouraging social sharing has allowed our clients to tap into audiences they hadn’t considered. Catchy content that resonates on an emotional or entertainment level tends to perform exceptionally well.
7. Feedback and Sentiment
Feedback and sentiment offer qualitative insights into your audience’s perception. Comments, reviews, and direct messages from viewers provide crucial perspectives on the strengths and weaknesses of your video content.
Fostering an environment that encourages feedback is key. Conclude your videos with direct questions or prompts that invite discussion.
This type of engagement not only helps you understand viewer sentiment but also fortifies audience relationships, showing them their opinions matter. Consistent, constructive feedback is indispensable for refining your video strategy.
Our insight: We leverage viewer feedback to drive continuous improvement. Clients who actively seek detailed feedback often create highly resonant, continuously improving video content.
Strategies for Measuring ROI
1. Set Clear Objectives
The journey to measuring ROI begins with setting clear objectives. Defining success for your explainer video is pivotal – whether your goal is to boost brand awareness, generate leads, or escalate sales.
Videos have shown to help 81% of marketers generate leads (Wyzowl), making them an essential component in achieving your objectives. And, an impressive 98% of people have watched an explainer video to learn more about a product or service (Wyzowl).
Aligning your video content with overarching business goals ensures that your efforts are relevant and targeted. It’s about carving a path from content creation to business uplift that’s clear and measurable. Clear, strategic objectives lay the groundwork for effective ROI measurement, guiding every production decision to maximize impact.
Our insight: Defining specific, measurable, and time-bound objectives leads to precise ROI assessment. Our best-performing videos originate from well-scoped objectives and strategic alignment.
2. Utilize Analytics Tools
In today’s data-driven landscape, utilizing analytical tools is indispensable. These tools are designed to meticulously track key metrics such as engagement rate, conversion rate, CTR, and viewer retention.
Leveraging platforms like YouTube Analytics, Google Analytics, or specialized video hosting services helps you gather comprehensive data. The more granular your data, the more informed your decisions can be.
Employing these tools will illuminate trends, pinpoint areas for improvement, and identify the strategies that work best for your audience, ensuring your efforts are data-backed and insightful.
Our experience: We’ve found that integrating analytics tools at various touchpoints helps capture a full view of performance. Detailed data analyses have consistently informed successful video content strategies. We recommend tools like Wistia, Vidyard and Posthog to track video analytics and key events.
3. Calculate ROI
Calculating ROI transforms data into a financial story of your video content’s efficacy. The formula is straightforward: ROI = (Value of Conversions – Cost of Investment) / Cost of Investment.
For example, if an explainer video incurs a production cost of $5,000 and subsequently generates $35,000 in additional revenue, the ROI tallies to 600%. This calculation highlights the quantifiable financial impact your videos have on your bottom line, offering clear evidence when discussing future investments in video content with stakeholders.
Understanding ROI in these terms ensures that every video is an investment, not just an expense. Notably, 93% of marketers say video marketing has provided them with a good ROI—a statistic at an all-time high (Wyzowl).
Our insight: Explainer videos often have multi-faceted ROI impacts. Beyond direct financial return, consider brand equity and long-term customer engagements as part of your analysis.
Conclusion
Measuring the ROI of your explainer videos is an essential practice that involves tracking pivotal metrics, setting definitive objectives, leveraging analytics tools, and calculating concrete financial impacts. This process not only validates your current strategy but also informs and refines future content.
By systematically analyzing these factors, you can accurately assess the effectiveness of your explainer videos. This empowers you to make informed decisions that optimize your content strategy, ensuring that your explainer videos are not just meeting your expectations but exceeding them, all while delivering substantive business value.
