How Much Does Video Production Actually Cost?
Video is one of the most effective ways for brands to elicit behaviour change. It can compel your audience into action, and inform and communicate messages. But understanding where to start, along with the potential cost can seem daunting.
While there’s of course an investment involved in commissioning videos for your business, the returns can be much greater than other forms of content. A survey from Wyzowl found that 79% of consumers prefer to learn about a product through video rather than text. And 84% of consumers have been convinced to purchase a product after watching a video.
It’s a common misconception that video production is expensive. Although big brand films can have eye-watering budgets, they don’t all have to be the next Hollywood blockbuster. There are many options available, ranging from low-cost social content to high-end promotional videos. In this blog I’ll explain why costs vary and what you should be thinking about when developing your next video brief.
How much does video production cost?
Unsurprisingly, this is one of our most frequently asked questions.
The reality is that the cost of video depends on your objectives. For example, a product launch video designed to capture new sales leads is likely to yield a healthy Return On Investment (ROI), therefore a greater value is justified. However, an instructional video for the same product aimed at retaining existing customers would have a lower budget as it has a smaller return.
As a rule you should allocate a higher budget to projects used to attract new customers and increase sales. These could include digital ads, exhibition videos and even sales presentations. In contrast, internal communication videos have a lower value as their purpose is not always linked to a business’s bottom line. There are exceptions, but in general price is often associated with the size of the problem the video solves.
It’s worth noting that with forward planning the value of a single video can be increased. Once your video has been produced, it can be repurposed and reused at multiple stages of your marketing funnel.
Costs can also vary depending on the type of production and the techniques required to achieve the results you want. Is it live-action, animation or a combination of both? Does it need a voiceover, presenter, greenscreen? What other requirements do you have? For example, equipment, location, crew, talent, pre-production and postproduction.
Where you plan to host your video can also have a direct effect on the cost. For example, will it sit on your website, or do you plan to use it across social media? It is common for voiceover artists to charge a usage fee if you’re planning to use paid advertising. The same is true for music licences.
The nitty gritty
Our productions generally start from £3000 depending on our clients’ objectives. For context, television adverts can range from £10,000 – for a medium-sized business with a growing audience -to £500,000 for established businesses who need large-scale campaigns. Think McDonalds or Microsoft.
To help you get an idea of cost, creating a video production brief highlighting what you are trying to achieve will really help.
In your brief you could include:
Your marketing objectives – whether you want to increase brand awareness, or are looking for a measurable sales increase, this is one of the best ways to increase your ROI;
Your business goals;
The channel you’ll host the video – for example a website or social media platform;
Your expected return on investment – the value of acquiring a customer versus the cost of video production enables us to reach a cost-effective solution;
The type of video content – for example, is it an instructional video that shows customers how to use a product, or a training piece?
To help us understand more about what you need, tell us about your project so we can guide you through the briefing process.
Real world examples
The three examples below illustrate how the cost of production scales depending on your objectives.
Hub content: LMA Mangers St Georges Park Event Highlights £2k -3k
An event highlights video filmed at St. George’s Park, with League Manager-fronted corporate teams facing off for the grand prize. This type of video can be used to sell tickets for future events, or remember a special occasion.
Product Promotional video: The Dreambuild – £4k – 6k
A promotional video montage showing the assembly of Forme’s ultimate bike. It included a montage of the footage edited to a music track, creative sound design and motion graphic overlay elements. The video was used to raise awareness of the brand and identify them as a premium bike component manufacturer.
Brand awareness video: IDU Smartbox – £15k – 20k
A brand awareness video showcasing IDU’s intelligent drone delivery receptacle, Smartbox. The purpose of the video was to streamline their sales pitch and make it easier for investors to understand how the product works. The video combined live action footage, CG animation and visual effects.