Promoting your video platform business can be challenging. We are often asked if it is wise to promote your video platform via an e-mail marketing campaign from a commercial partner. What it usually comes down to is that the partner sends an promotional email to his member list. For example “Create an account today and watch 2 weeks for free”. As we stated in our blog about e-mail marketing, e-mail marketing should be the backbone of your online marketing strategy. But it is important that you write down for yourself just as well what you expect it to cost and what it will deliver. You clearly don’t want your video platform business to lose money.
It is practical in your calculations to keep the following figures in mind. We see with our customers that with this type of promotion on average between half and two percent converts. This means that out of 10,000 emails sent, up to 200 people create a free account. A maximum of 2 percent of these 200 people converts to a paid account. So in this case 4 people.
Now let’s sketch an example. Suppose you have a video platform business that focuses on runners in the US. A national publisher comes to you (i.e. The New York Times). This publisher offers to promote your video platform to 100,000 readers who fall under the sport or running profile. They charges 1000 dollar for this. In accordance with our figures, you can expect that a maximum of 2000 people will take a free account for 2 weeks. And 40 people eventually take a paid account.
You now know that these 40 people must raise at least 1000 dollar. Suppose you ask 10 dollar a month for your service, then almost everyone has to use your service for at least 3 months. In addition, you must not forget that 2000 people can also watch your videos during the free 2-week period. Suppose they watch an average of a 30-minute video during this period. Then they watch a total of 1000 hours of your online videos, which represents around 2000 gigabytes of streaming costs. This will be a few hundred dollars.
In summary, it is advisable to set up e-mail marketing campaigns with commercial partners. After all, you increase your list of contacts and your video platform becomes more visible within your target group. It is only important that you always put a few calculation scenarios on paper, so that you know when you are going to make a profit and what the minimum conditions for this must be.
