Videos let your brand express, inform, and entertain on a more personal level. But most importantly, it is what internet users crave– perhaps, a significant amount of them do– and it can help with your return on investment (ROI). In the US, 85% watch online videos, and on the business side, 88% of marketers are satisfied with the ROI generated from videos. That’s why you should consider outsourcing your video production services.
ROI is measured by comparing your costs and profit from any investment, and it helps with decision-making for your present and future activities. Here’s how you do it:
Source: Corporate Finance
Ensuring a great ROI is a must
When it comes to video production, extreme adaptability and endless sources of creativity are needed. But above all, ensuring a great ROI is a must. It can justify your financial investments and efforts in employing the strategy, and it will also help you make better future decisions for your agency. One way to do this is to outsource your video production services. As an agency, In-house content creation is a great hands-on approach to your video production services. You can employ your brand’s culture and values right away, adding a unique touch to your output. After all, who knows better than your team?
However, not all agencies have the time and resources to build their team and do everything independently. Big and small businesses still choose to outsource for its numerous benefits in their operations. Outsourcing is a common and efficient practice that many agencies consider. It is rendering certain services or activities from a third-party agency so they can focus on core areas of their business. Among companies, B2B marketers outsource content creation the most. According to a recent study from Content Marketing Institute, 84% outsource content creation, among other content marketing activities.
Source: Content Marketing Institute
Companies’ motives for outsourcing may vary. Some may need help from experts and professionals in a specific field or function, while others seek an unbiased view of their projects. But according to Uplers, most businesses see these top two reasons for outsourcing:
- Access talent and expertise that helps increase business efficiency and;
- Increase competitive advantage by cutting costs.
There are more benefits to outsourcing than being able to disseminate tasks and improve productivity. As you go on with your business, you always want to ensure that you get your money’s worth with every move. There is a huge need for creative prowess in a reasonable amount of time, effort, and costs for video production agencies. Above all else, it must result in a great measure of ROI, which is possible through outsourcing.
Improve Your Video Production Agency’s ROI with Outsourcing
1. Quickly Expand Your Video Production Team
Depending on the agency, a video production team mainly consists of several members who wear more hats than needed. Your agency can have the most flexible and adaptable team there is. But when a wave of projects and opportunities comes in, there’s no guarantee that you can handle it all. The solution? Hire additional team members.
However, it may not always be the best choice.
Recruiting new employees can be time-consuming, costly, and require you to train them. Instead, for a quick expansion and a guaranteed quality of talent, go for outsourcing. When you need additional experts fast, it will be easier to connect with various creators, access the equipment and software they use, and ensure quality output in no time.
2. Reduce Your Operating Expenses Long-Term
Cutting costs is one of the top reasons for outsourcing. It provides a quick fix on the agency’s needed video production services, whether it’s intended to aid a sudden surge in projects or a loss of employees. However, according to Workhorse, strong agency partnerships can help you enjoy long-term cost efficiency in several areas, such as:
- Lower employee acquisition and overhead costs
- Cost-saving on tools and other resources
- Save on research and development expenses
- Knowledge loss/turnover.
In a separate study by Duval Partnership, outsourcing reduces delivery time and operational and labor costs by almost half compared to hiring a regular employee. It guarantees to increase the agency’s revenue and proves that outsourcing is a short-term solution and can be a long-term investment for businesses to grow. However, it is essential to find the right agency to partner with to reap the benefits of outsourcing. When collaborating with another company, watch out for possible red flags so it does not turn out as an additional company expense.
3. Scale Your Current Services
Your video production agency is in charge of creating content, from explainer videos, quality ads, product reviews, etc. While they can produce quality content for you, video content may require a progressive approach so it can appeal to the audience. With this, eventually, you will need to have more sources of creative prowess and a different point of view to improve your services.
Your video production agency can do it all, but it’s impossible to be an expert in every aspect. To ensure your agency’s adaptability and increase your team’s efficiency, scale your current video production services by outsourcing. You can hire experts in different industries and leverage their skills to help improve your services. This way, you can accommodate other markets while expanding your horizons to various fields.
Say, you are exceptionally great with storyboarding and multi-camera shoots, but your video editing needs to keep up. Whether you need fresh eyes for the job, a new style, or entirely different software for the job– it’s clear that you need change. Outsourcing for video editing can contribute a whole new perspective to the role. You can quickly look up the video editing job qualifications you are looking for. Knowing these agencies, they employ flexible talents. Perhaps, you might even discover a new service to offer.
4. Frees You Up to Focus on Your Video Marketing Strategy
Being hands-on with the quality of service you want to deliver is a great way to ensure it’s up to your standards. It’s also good practice to quickly fill in the absence of a team member without compromising the output. However, it can divide your attention too often.
It’s true that small things matter. But in an agency, there must always be someone who looks at the bigger picture of the operations. Outsourcing for content shifts your focus onto the broader part of your operations, in this case, strategizing. A team dedicated to content creation generates more ideas and output. And all you have to do is watch out for trends, analyze current statistics, and plan out your next actions. It also allows you to meet deadlines and see ROI fast as they will do most of the work.
Quality video production takes time, and outsourcing takes it off of your hands without compromising its value. Strategizing is vital for your video marketing. A video on its own can be great, but it won’t be impactful– and worth the money– without a strategy to guide.
5. It Allows You to Leverage Your Strengths
You might think that doing everything in-house is easier. Being in control of tasks, overseeing every output, and meeting the deadlines appear more cost-effective. However, working hard on specific areas of your agency isn’t always smart. Instead, you can invest in a third-party agency and ramp up your company’s growth.
Outsourcing lets you leverage your strengths in two ways: delegate a responsibility a third-party agency can better deliver as you focus on what you do best. This allows you to maximize time and resources to get faster results while ensuring production and growth. Another is, according to Personiv, you can gain a competitive advantage by having access to experts on your agency’s strengths. Having this opportunity lets you grow and compete with larger cost-efficient businesses.
6. Streamline Your Internal Processes
In handling a video production agency, you need to have a balance of extensive skills and talents to manage the agency and consistently deliver quality service. But as your agency grows, different aspects of the business will demand more attention. And it is impossible to attend to all of them at once.
In this case, outsourcing video production services can help you streamline your internal process without dealing with additional work. Say you want more video editors to cater to the massive volume of projects. Outsourcing is a better approach instead of onboarding new hires and training them. Not only can you take on work quickly, but it also lets you focus on your processes in the agency, whether it is about looking onto steps to scale or planning for the subsequent quarter-final.
Outsourcing helps take certain routines off your priorities and easily adjust according to your needs.
7. Increase Your Client Acquisition and Retention Rates
Now that you have a wide range of talent sources, you can accommodate more client requests. And this leads to increasing your ROI. For one, partnering with third-party agencies extends your reach. The more you outsource with different brands, the more comprehensive your reach, and the more you get recognized by potential customers. As you onboard more of them, the higher revenue there will be.
However, as much as it is great to acquire more, it is also essential to keep your customers’ loyalty to you. Customer retention is about keeping them satisfied with your services throughout your relationship. According to Hubspot, it is affected by the number of new customers and those who closed their contracts. But to quantitatively measure customer retention. Here’s a formula:
Outsourcing allows you to accommodate different industries, a broader perspective on video content creation, and more creators to work on more tasks. Having more people work on it allows your agency to deliver services faster. It can help improve the quality of your service, which will result in customer satisfaction. Hence, customer retention, reduced churn, and an increased ROI.
Creating quality video content is the ‘now’ of the industry. With the massive demand for visually appealing content, videos are part of the most sought-after medium of businesses. Fortunately, various video types engage firms, stakeholders, and prospects. It can also showcase talent and provide an opportunity for creators to hone their craft.
However, video production agencies don’t always have all the means to do everything by themselves. No matter how flexible they are, this approach is not always cost-efficient. Hence, the need for outsourcing video production services. But it doesn’t equate to not being capable of creating. Outsourcing helps you utilize your time and resources. And most importantly, increase your ROI faster.
When you’re ready to scale and get the best value for your investment, schedule a call with us!
We’re ready to connect with you with different creators, filmmakers, brands, and agencies dedicated to quality video creation that tells your story. Of course, we’re more than willing to help you improve your ROI and reach your goals faster.