Shoppable Video ROI
Shoppable video ROI is the profit a video generates against everything it cost — and it only approaches reality when platform fees and internal time are included.
What belongs in the cost side?
Shoot and edit costs alone make the result look better than it is. Include platform fees, the internal hours spent planning and running it, and reshoots, and you get a number you can decide with. Reusing one video across several pages raises the return on the same cost.
How far does attribution go?
Counting only purchases by people who watched is the conservative approach; counting every page visitor overstates it. Splitting by whether the video played and comparing the two groups' conversion invites the least argument. Fix the post-view window in advance too.
What belongs in the ROI calculation
Include | Easy to miss | |
|---|---|---|
Cost | Shoot and edit | Platform fees, internal hours, reshoots |
Return | Purchases by viewers | Results from pages that reused the video |
Deduct | Returns and cancellations | Discount coupon cost |
Window | The publish period | Purchases that accumulate afterward |
Frequently Asked Questions
Q. How do returns factor in?
Subtract them. If a video gives an impression the product doesn't match, conversion rises, returns rise with it, and ROI falls.
Q. Why does video look better over time?
Production is a one-time cost while exposure keeps accumulating. It's an always-on asset, so judging it on the first month usually undersells it.
Q. How do you split credit when several videos touched one purchase?
Fix the attribution rule first. Assigning it all to the last video watched is the simplest; if you split across videos, set the ratio once and don't change it between reporting periods.
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