social marketing

Proving the ROI of Video in Performance Marketing

״We have always had fantastic results with video but it’s difficult and expensive to create. Magisto made it easy for us to jump start our video advertising and to test which creatives work,”  Andrew Herrick Director of Sales, Casino Ballroom

The Casino Ballroom, a legendary music venue in New Hampshire, partnered with Magisto to see how they could use Facebook videos as part of their performance marketing strategy.

The first A/B test they ran was one that pitted authentic video content against professionally made Facebook video ads. In order to test authenticity as a driver of ROI in performance marketing, the Casino Ballroom ran an A/B test campaign using 14 different types of video content. Seven video spots were professionally produced and edited, while the other seven were authentic, social narrative videos composed of repurposed assets produced in-house with the Magisto A.I. Powered Platform.

The clear winner was the authentic, easily produced video content. These videos had 50% more likes, 102% more reach, 213% more shares, 83% more comments, and the cost per click was 28% less- a clear success for a strong performance marketing strategy.

Why? Professionally produced video content is overtly perceived as broadcast advertisements – it doesn’t generate social engagement or shares. Magisto videos have a production value and messaging that is conversational. This gave them a social voice, which garners greater reach, lower CPM (cost per impressions) and authentic, organic engagement. This is a real win for performance marketing.

The second test focused on which type of video content could have a stronger impact on sales or a call to action.

In order to translate the value of video authenticity and emotional engagement into direct sales, the Casino Ballroom ran a single display ad retargeting fans who had viewed the professionally produced video spot and those who had viewed the authentic narrative. They found that in performance marketing terms, the ads were much more powerful when viewed by customers who had seen the authentic video content.

Authentic video content produced by Magisto was once again the clear winner. The ads targeting viewers who had seen the Magisto video content had 500% more likes, 340% more shares, 167% more comments, the click through rate was 171% higher, the cost per action was 40% lower, and the cost per click was 51% less- another stunning success for a strong performance marketing strategy.

Having already established a strong emotional connection through the social narrative, the call to action had more meaning, resulting in significantly higher ROI. Instead of showing the same Facebook video with higher frequency, the Ballroom altered their performance marketing strategy to move the audience through the ad funnel and created actionable results by using display ads.

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