Is Tracking ROI the Ticket to Executive Buy-In for Your Corporate Video Work?
No matter how creative your concept, beautiful your footage, or carefully crafted your production is, video must show a positive return on investment. A good illustration of this point can be found in Brian Frydenlund’s article at our sister company TeamPeople.
Productions in every industry need to prove that they have a positive effect on the bottom line. Measurement strategies can vary widely among different companies, but one of the most meaningful metrics is return on investment, or ROI. ROI is extremely useful because it helps you understand how much return, or profit, you receive from every dollar you invest.
It might surprise you that many organizations using media and AV teams don’t actively utilize this key metric. Despite the enormous amount of data analytics tools currently available, the results from our 2016 Media & AV Insights Survey show that only four in ten media and AV organizations are currently tracking the ROI of their projects. That’s a significant amount of companies who aren’t proving the impact on their bottom line.
There is a large disconnect, however, as CEOs are making it clear that they expect more effective use of data and reporting. Seventy-five percent of CEOs responding to our survey indicated that they want their team to report the ROI of every single project.
Is tracking ROI in this industry challenging? Yes. With the right perspective, cost analysis, and performance metrics in place, however, media and AV organizations can take this opportunity to prove their value and obtain the executive buy-in necessary to grow.
To effectively measure ROI, you must first understand how your team and its specific goals fit into the company’s overall goals. You need to zoom out. It’s important to measure each of your media and AV projects against your own success metrics, but you need to stay aware of how it fits into the overall picture. For example, your team might know how much an internal email blast costs and how many opens you want, but you need to understand how it fits into the big picture.
This type of integration requires thoughtful planning, but it’s a strong step toward understanding exactly how you fit into the company’s overall goals.
What Does Success Cost You?
Simply put, you can’t accurately measure ROI without having a clear picture of exactly what you’re spending. Specifically, you need to consider:
–On what specific items are my resources being spent?
–Do I understand the basic accounting and economics of my team’s operations?
–How much does each line item cost?
Media and AV teams need to diligently capture the costs of their projects before they are able to understand if their efforts are having a positive impact. This means tracking everything from equipment rental prices to post-production facility costs to a worker’s hourly rate.
When it comes to people on your team, whether they’re full-time or independent contractors, tracking ROI is challenging. How do you track the return of a specific person?
This is especially difficult when a person’s job focuses on being creative and offering fresh ideas. They’re producing intangible results – such as feelings or emotions. Talent-driven metrics like these can’t easily be rolled up neatly into traditional ROI, which means as a media and AV leader you too need to get creative.
Consider presenting more qualitative results alongside hard numbers. How can you make sure you’re keeping track of all the subtle creative efforts your team is making on the way to delivering a final media and AV product?
KPIs Are Key
Establishing Key Performance Indicators (KPIs) for media and AV projects ahead of their kick-off is a solid start to understanding ROI. Often, deciding on what KPIs to measure depends on how creative or technical the operation is. Then, you can strategically balance what measures you want to include from both sides.
It’s important to note that KPIs are most effective when all teams involved mutually agree on them before things get underway. By knowing ahead of time what you’re trying to achieve relative to your costs, your team will be better equipped to prove the value of key deliverables.
A few examples of meaningful KPIs for media and AV teams to measure against cost include:
–Audience reach – How many people did a video reach? Do you have the ability to track impressions, views, or opens?
–Allocated project time vs. actual hours worked – Did the estimates you made for how long a project would take come in under the amount of time it took to execute?
–Technical discrepancies – If you outsourced a media and AV team for a conference, for example, did you keep a running list of errors and miscues? Or, if you support your organization’s conference and meeting room operations, are you tracking technical issues that occur against the total meetings supported?
–Innovation offers – Does your media and AV team consistently offer innovative solutions for complex problems? If so, are they able to do so in a cost-effective manner? Think about how your creative people provide counsel and guidance under pressure.
Unfortunately, there’s no magic bullet for tracking ROI. All organizations are vastly different, with many moving parts, people, and projects. Measuring ROI is a challenge for media and AV teams, but the extra effort is worth it since executives are hungry to see value in terms of the bottom line. From entry-level PAs to those in charge of the entire department, it’s a perfect chance to prove how your work moves the entire business forward.
If you are looking to increase your ROI with customized staffing solutions and management, contact our sister company TeamPeople at teampeople.tv.
And if you need help finding a crew that helps you make a positive impact on the bottom line, reach out to us here at Crews Control. We help you find the right crew for any type of project. Just click here for a free quote today.