A Forrester Total Economic Impact™ Study Commissioned By WeVideo, January 2025
Changing student behavior and the shift to remote and hybrid learning models are making it more difficult for administrators and educators to effectively foster higher levels of student engagement with learning content.1 As student preference for video content continues to increase, educators must create diverse, interactive learning experiences that improve student comprehension and provide time savings both in and out of the classroom.
WeVideo is an end-to-end video learning platform for use by administrators, educators, or students at both K12 and higher education institutions. PlayPosit, a WeVideo product, is part of this platform, empowering users with a diverse portfolio of interactive video tools.
WeVideo commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying WeVideo and PlayPosit video learning tools.2 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of WeVideo and Playposit video learning tools on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed eight representatives at six organizations with experience using WeVideo and PlayPosit video learning tools and surveyed 97 respondents across K12 and higher education organizations. For the purposes of this study, Forrester aggregated the interviewees’ and survey respondents’ experiences and combined the results into a single composite organization that is a large higher education organization with 5,000 students, 300 educators, and a team of 10 administrators responsible for learning management and instructional design. This composite organization specifically uses PlayPosit to enhance its students’ learning experience.
Interviewees said that prior to using WeVideo and PlayPosit video learning tools, their organizations used alternative video creation and/or interactive content tools. However, these tools were often incompatible with available hardware or lacked integrations with existing systems, which made them inflexible and difficult to use for end users. These limitations led to obstacles in creating engaging and personalized materials for online or hybrid learning environments.
With WeVideo and PlayPosit video learning tools, the interviewees facilitated student engagement by creating student-centered and personalized content that was easily accessible. Additionally, interviewed educators found the tools — especially PlayPosit — easy to use, which encouraged adoption and led to the creation of more effective learning content as well as increased productivity from reducing time spent on administrative activities.
Base: 97 WeVideo and PlayPosit video learning tools users at education organizations
Source: A commissioned study conducted by Forrester Consulting on behalf of WeVideo, September 2024
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
The financial analysis which is based on the interviews and survey found that a composite organization experiences benefits of $281,000 over three years versus costs of $91,000, adding up to a net present value (NPV) of $190,000 and an ROI of 208%.
Return on investment (ROI)
Benefits PV
Net present value (NPV)
Payback
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in PlayPosit.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that PlayPosit can have on an organization.
Interviewed stakeholders and Forrester analysts to gather data relative to WeVideo and PlayPosit.
Interviewed eight representatives at six organizations using WeVideo and PlayPosit video learning tools to obtain data about costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ and survey respondents’ organizations.
Constructed a financial model representative of the interviews and survey using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees and survey respondents.
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Readers should be aware of the following:
This study is commissioned by WeVideo, the parent company of PlayPosit, and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in WeVideo and PlayPosit video learning tools.
WeVideo reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
WeVideo provided the customer names for the interviews but did not participate in the interviews.
Consulting Team:
Casey Sirotnak
| Role | Industry | Region | User Type And Count |
|---|---|---|---|
| Learning management system administrator Instructional designer |
Higher education (state university) | US (WI) | 1,000+ student and faculty users |
| Instructional designer Instructional designer and professor |
Higher education (state university) | US (MO) | 315 faculty users |
| Instructional designer | Higher education (state university extension program) | US (MI) | <150 student and faculty users |
| Media arts teacher | K12 (middle school) | US (KY) | 160 student and faculty users |
| Lecturer | Higher education (state university) | US (CA) | 600 student users |
| Professor | Higher education (state university) | US (NY) | 900 student users |
Prior to PlayPosit, the interviewees’ organizations utilized alternative video creation and interactivity tools. However, interviewees noted that these tools did not meet their organizational goals to create engaging and personalized content for online or hybrid learning environments and struggled with common challenges, including:
The interviewees and survey respondents searched for a solution that could:
The interviewees represented various personas with different use cases and related success criteria; however, all personas were critical to the investment decision in PlayPosit. The interviewees, included:
Based on the interviews and survey, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the eight interviewees and 97 survey respondents, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The higher education organization was previously using alternative tools for video editing and interactivity before investing in Wevideo and PlayPosit video learning tools. The student body consists of 5,000 students and is served by a faculty of 300 educators and a team of 10 administrators with responsibilities across both learning management and instructional design.
Deployment characteristics. The composite organization begins using the solution in Year 1 following a brief pilot program managed by the administrative team. While the entire faculty is given access via an unlimited license, adoption is scaled for educators by user count (measured as full-time employees [FTEs]) with 50 full-time users in Year 1. This number grows by 10% year over year. A smaller percentage of these users are considered super users — 4% of the educators in Year 1, growing to 10% by Year 3. Adoption for administrators is measured by user count (growing from 50% of total administrators in Year 1 to 70% by Year 3) as well as the volume of videos created. Administrators create video content for two primary use cases: 1) training content for their own professional development responsibilities and 2) instructional content for educators to use in their classes. Within the first use case, administrators create 10 videos each in Year 1, and up to 23 videos each by Year 3. Within the second use case, administrators create 55 videos total in Year 1 to support educators and 161 videos by Year 3.
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Administrative time savings for educators outside of the classroom | $74,250 | $81,675 | $89,100 | $245,025 | $201,942 |
| Btr | Efficiencies in the classroom for educators | $11,880 | $26,136 | $35,640 | $73,656 | $59,177 |
| Ctr | Administrative time savings for creating and administering instructor trainings | $4,085 | $7,353 | $13,154 | $24,592 | $19,673 |
| Total benefits (risk-adjusted) | $90,215 | $115,164 | $137,894 | $343,273 | $280,792 | |
Evidence and data. Prior to investing in PlayPosit by WeVideo, the interviewees’ organizations utilized alternative tools for video creation that offered limited functionality and, ultimately, contributed to more administrative overhead for educators. PlayPosit is intuitive to use and integrates well with back-end systems, such as LMS, to sync content with grade books and other administrative tools. Additionally, educators created demonstrations and how-to videos to eliminate frequently asked questions and streamline communications with students outside of the classroom. As educators built up instructional video content in video libraries, they benefited from further efficiencies in lesson planning. The time savings for educators were redistributed to time spent with students, to accommodate the administrative burden of larger class enrollments, and to individual projects, such as research opportunities.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Administrative time savings for educators outside of the classroom may vary depending on the following:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $202,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Educators using PlayPosit annually | Composite | 50 | 55 | 60 | |
| A2 | Time spent annually on administration outside of the classroom before PlayPosit (hours) | Interviews | 120 | 120 | 120 | |
| A3 | Time savings on administration outside of the classroom with PlayPosit | Interviews | 50% | 50% | 50% | |
| A4 | Fully burdened hourly rate for an impacted educator | TEI standard | $55 | $55 | $55 | |
| A5 | Productivity recapture rate | TEI standard | 50% | 50% | 50% | |
| At | Administrative time savings for educators outside of the classroom | A1*A2*A3*A4*A5 | $82,500 | $90,750 | $99,000 | |
| Risk adjustment | ↓10% | |||||
| Atr | Administrative time savings for educators outside of the classroom (risk-adjusted) | $74,250 | $81,675 | $89,100 | ||
| Three-year total: $245,025 | Three-year present value: $201,942 | |||||
Evidence and data. With PlayPosit, the interviewees created virtual content that was supplementary to in-person classroom instruction either optimizing time spent in the classroom or replacing in-person instruction entirely. In this way, educators spent less time in the classroom without compromising learning comprehension and, ultimately, were able to reach more students without adding to in-person classroom time.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Efficiencies from creating virtual content for educators may vary depending on the following:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $59,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Percentage of total educators using PlayPosit as power users | Composite | 4% | 8% | 10% | |
| B2 | Educators using PlayPosit as power users | A1*B1 | 2 | 4 | 6 | |
| B3 | Time spent teaching in-person annually before PlayPosit (classroom hours) | Interviews | 240 | 240 | 240 | |
| B4 | Reduction in time spent in the classroom due to interactive content created with PlayPosit | Interviews | 50% | 50% | 50% | |
| B5 | Fully burdened hourly rate for an impacted educator | TEI standard | $55 | $55 | $55 | |
| Bt | Efficiencies in the classroom for educators | B2*B3*B4*B5 | $13,200 | $29,040 | $39,600 | |
| Risk adjustment | ↓10% | |||||
| Btr | Efficiencies in the classroom for educators (risk-adjusted) | $11,880 | $26,136 | $35,640 | ||
| Three-year total: $73,656 | Three-year present value: $59,177 | |||||
Evidence and data. Interviewed administrators noted they created content with PlayPosit to cover teacher training topics and common administrative tasks, such as how to submit grades. As a result, administrators spent less time answering ad hoc questions from educators or hosting in-person training sessions for perfunctory tasks. The time savings were especially crucial as the volume of questions from educators peaked at the close of a semester or end of year when timing was of the utmost importance. With PlayPosit, administrators redirected their time to focus on teacher trainings for more value-added tasks or on more complex and nuanced topics.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Time savings for administrators in creating and administering instructor training may vary depending on the following:
Results. To account for these risks, Forrester adjusted this benefit downward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $20,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Administrators using PlayPosit annually | Composite | 5 | 6 | 7 | |
| C2 | Average interactive videos created per administrator annually | Composite | 10 | 15 | 23 | |
| C3 | Hours saved on administrative or training tasks per video | Interviews | 2 | 2 | 2 | |
| C4 | Fully burdened hourly rate for an administrator | TEI standard | $43 | $43 | $43 | |
| Ct | Administrative time savings for creating and administering instructor trainings | C1*C2*C3*C4 | $4,300 | $7,740 | $13,846 | |
| Risk adjustment | ↓5% | |||||
| Ctr | Administrative time savings for creating and administering instructor trainings (risk-adjusted) | Composite | $4,085 | $7,353 | $13,154 | |
| Three-year total: $24,592 | Three-year present value: $19,673 | |||||
Interviewees and survey respondents mentioned the following additional benefits that their organizations experienced but were not able to quantify:
Base: 97 WeVideo and PlayPosit video learning tools users at education organizations
Source: A commissioned study conducted by Forrester Consulting on behalf of WeVideo, September 2024
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement PlayPosit and later realize additional uses and business opportunities, including:
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Dtr | WeVideo video learning tools cost | $0 | $25,046 | $25,046 | $25,046 | $75,138 | $62,286 |
| Etr | Additional time spent on video creation and interactive videos | $59 | $6,642 | $11,047 | $18,239 | $35,987 | $28,930 |
| Total costs (risk adjusted) |
$59 | $31,688 | $36,093 | $43,285 | $111,125 | $91,216 | |
Evidence and data. Interviewees’ organizations paid annual licensing fees to WeVideo for use of the WeVideo and PlayPosit platforms. Licensing was based on contract type and user volumes. As such, pricing may vary. Contact WeVideo for additional details.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Costs to WeVideo might vary depending on the following:
Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $62,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| D1 | Fee for an unlimited PlayPosit license based on estimated user volumes | Composite | 0 | $21,779 | $21,779 | $21,779 |
| Dt | WeVideo video learning tools cost | D1 | $0 | $21,779 | $21,779 | $21,779 |
| Risk adjustment | ↑15% | |||||
| Dtr | WeVideo video learning tools cost (risk-adjusted) | $0 | $25,046 | $25,046 | $25,046 | |
| Three-year total: $75,138 | Three-year present value: $62,286 | |||||
Evidence and data. Interviewees’ organizations spent additional time on video creation with PlayPosit to fuel various use cases. Administrators spent more time on video creation than with prior tools, creating content for their own internal training purposes as well as to support educators in building content for their courses. Additionally, as educators adopted the tool, they took on more and more content creation themselves, spending more time creating videos overall.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Additional time spent on video creation and interactivity may vary depending on the following:
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $29,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| E1 | Average additional videos created per year per educator with PlayPosit | Survey data | 4 | 6 | 9 | |
| E2 | Total additional videos educators create per year with PlayPosit | A1*E1 | 200 | 330 | 540 | |
| E3 | Average additional time educators spend on video creation per video with PlayPosit (minutes) | Survey data | 30 | 30 | 30 | |
| E4 | Total hours educators spend on video creation per year with PlayPosit | E2*E3/60 | 100 | 165 | 270 | |
| E5 | Fully burdened hourly rate for an educator | Assumption | $55 | $55 | $55 | |
| E6 | Subtotal: Total cost of educator time spent on video creation with PlayPosit | E4*E5 | $5,500 | $9,075 | $14,850 | |
| E7 | Total additional videos created per year by administrators with PlayPosit | C1*C2 | 5 | 50 | 90 | 161 |
| E8 | Average additional time administrators spend on video creation per video (minutes) | Interviews | 15 | 15 | 15 | 15 |
| E9 | Total hours administrators spend on video creation per year | E7*E8/60 | 1.25 | 13 | 23 | 40 |
| E10 | Fully burdened hourly rate for an administrator | Assumption | $43 | $43 | $43 | $43 |
| E11 | Subtotal: Total cost of administrator time spent on video creation with PlayPosit | E9*E10 | $54 | $538 | $968 | $1,731 |
| Et | Additional time spent on video creation and interactive videos | E6+E11 | $54 | $6,038 | $10,043 | $16,581 |
| Risk adjustment | ↑10% | |||||
| Etr | Additional time spent on video creation and interactive videos (risk-adjusted) | $59 | $6,642 | $11,047 | $18,239 | |
| Three-year total: $35,987 | Three-year present value: $28,930 | |||||
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($59) | ($31,688) | ($36,093) | ($43,285) | ($111,125) | ($91,216) |
| Total benefits | $0 | $90,215 | $115,164 | $137,894 | $343,273 | $280,792 |
| Net benefits | ($59) | $58,527 | $79,071 | $94,609 | $232,148 | $189,576 |
| ROI | 208% | |||||
| Payback | <6 months | |||||
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
Benefits represent the value delivered to the business by the product. The TEI methodology places equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization.
Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over the existing environment for ongoing costs associated with the solution.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
| Higher ed – College/university | 54% |
| K12 – Elementary school | 15% |
| Higher ed – Graduate school | 12% |
| Extended assignment completion rates prior to WeVideo and PlayPosit | 35% |
| Extended assignment completion rates with WeVideo and PlayPosit | 38% |
| Educators developing interactive video lessons for classroom use | 74% |
| Administrators/coaches creating videos for staff professional development | 27% |
| Administrators/instructional design teams supporting educators In creating video lessons | 23% |
| Students creating project-based learning videos for coursework | 19% |
| Educators/administrators producing interactive videos for extracurricular activities | 11% |
| Students producing videos for extracurricular activities | 7% |
| Students creating videos for media arts coursework | 6% |
| Other | 1% |
| To support hybrid/remote teaching environments | 30% |
| To facilitate student engagement | 28% |
| To enable student-centered and personalized learning experiences | 14% |
| To increase teaching efficacy in the classroom | 8% |
| To increase productivity for administrators in learning management or professional development | 7% |
| To drive collaboration in classrooms | 4% |
| To update the available technology in the classroom | 3% |
| To support equity and access for students | 3% |
| Other | 3% |
| Teacher/professor – Nondigital arts/media subject | 51% |
| Teacher/professor – Digital arts/media subject | 12% |
| Instructional design | 9% |
| Informational/educational technology | 7% |
| Assistant principal/principal | 2% |
| Administrator – Operations | 2% |
| Professional development/instructional coaching | 1% |
| Administrator – Student services | 1% |
| Other | 15% |
| Less than 6 months | 9% |
| 6 months to under 12 months | 8% |
| 12 months to under 16 months | 9% |
| 16 months or over | 48% |
| Average number of videos created prior to WeVideo and PlayPosit | 20 |
| Average number of videos created with WeVideo and PlayPosit | 32 |
| Average number of views per video prior to WeVideo and PlayPosit | 30 |
| Average number of views per video with WeVideo and PlayPosit | 70 |
| Average number of minutes to create one video prior to WeVideo and PlayPosit | 45 |
| Average number of minutes to create one video with WeVideo and PlayPosit | 30 |
| Less than 5% reduction in time | 6% |
| 5% to 10% reduction in time | 17% |
| 11% to 15% reduction in time | 11% |
| 16% to 25% reduction in time | 33% |
| 26% to 30% reduction in time | 11% |
| 31% to 40% reduction in time | 11% |
| 41% to 50% reduction in time | 0% |
| Greater than 50% reduction in time | 6% |
| No reduction in time | 6% |
| Less than 5% reduction in time | 0% |
| 5% to 10% reduction in time | 33% |
| 11% to 15% reduction in time | 27% |
| 16% to 25% reduction in time | 0% |
| 26% to 30% reduction in time | 13% |
| 31% to 40% reduction in time | 0% |
| 41% to 50% reduction in time | 13% |
| Greater than 50% reduction in time | 13% |
| No reduction in time | 0% |
| One-time lesson completion rates prior to WeVideo and PlayPosit | 41% |
| One-time lesson completion rates with WeVideo and PlayPosit | 74% |
| Course completion rates prior to WeVideo and PlayPosit | 44% |
| Course completion rates with WeVideo and PlayPosit | 61% |
Note: Percentages may not total 100 due to rounding.
1 Source: Reduce Technical Debt By Understanding Enterprise Video Platform Capabilities Before RFP, Forrester Research, Inc., December 20, 2023.
2 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
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