Pay-Per-View Live Streaming: How To Calculate ROI

How To Calculate ROI - Stretch Internet

If your organization has decided to produce a live stream, you already consider it a worthy investment. It’s important to continually measure this investment to ensure it remains a worthwhile endeavor over the long haul.

Businesses that use live streaming experience a number of benefits that contribute to profitability. Your live stream is likely contributing to organizational performance in three ways:

  • It helps build your brand. Since live streamed content happens on-the-fly (to some degree, at least!), it promotes authenticity that’s hard to reproduce using other marketing methods. Anything can happen when you’re live—and it’s not necessarily all good—but it does show a willingness on the part of your organization to be honest and open to the public. Honesty makes your brand more appealing to people, and your live stream content can help them get to know you better.
  • It helps promote your products or services. Statistics prove how much people like watching videos: 43% of people want to see more video content from marketers, and 51.9% of marketing professionals worldwide name video as the type of content with the best return on investment. Live streamed videos may be the best way to educate the public about how your product or service works, as you could even answer questions about it in real-time with social media integration.
  • It helps build a community around your organization. Social media and live streaming go hand-in-hand. Viewers from around the globe—even those in remote locations—can interact with one another and react to the content as they watch. That kind of social interaction improves the experience for your viewers, making them feel good about supporting your product while also fostering a sense of brand loyalty and ownership. This type of “community” is also hard to duplicate any other way.

All of the above benefits have great value for organizations (what’s sometimes referred to as value on investment, or VOI). But while the benefits of live streaming are somewhat intangible, pay-per-view (PPV) live streaming offers a tangible financial benefit in the form of revenue.

By offering pay-per-view live streaming, you’re giving your organization the best chance at a strong a return on investment (ROI). Positive ROI can be used to justify the existence of your live streaming program, and incoming revenue from your PPV can be used to continually improve your live stream.

Determining The Value Of Pay-Per-View Live Streaming

While the idea of monetizing a live stream is catching on, some organizations are hesitant to start charging for content without knowing the answer to this question: “How much revenue will our live stream generate, exactly?”

It’s hard to answer with any degree of certainty until you start doing PPV… but not starting could mean missing a great opportunity. That catch-22 is why we came up with a pay-per-view live streaming ROI calculator.

Our calculator takes into consideration the three factors that play into profits:

  • Pricing
  • Audience size
  • Sponsorship opportunities

Each of these factors allow room for growth. For instance, there are specific tactics you can use to increase audience size over time, and different types of sponsorship opportunities to take advantage of. To help you get the most out of the ROI calculator, we’ve also created a short guide to accompany it that explains these factors in more detail, and offers tips on how to use them to influence profits.

Find out what your return on investment would be from pay-per-view live streaming with our free ROI calculator. Download it now.

ROI-Calculator-And-Guide