When it comes to basic video costs, people can expect to pay around $1,200 for most basic videos while premium videos may cost upwards of $50,000. Most companies will be looking at projects to be completed in a matter of days that cost less than $10,000.
The standard promotional video can cost less than $100 up to $50,000, depending on aspects such as length and quality. It is important for people to understand where various costs come from, how they will add up, and what options people have for video production.
The Cost of NOT Creating Promotional Videos
It is important to remember that Facebook video ads get 10 to 30 percent more views than other ad formats, and organic video posts and video ads on Instagram get 38 percent more engagement than images. The bottom line remains that companies that are spending money on image ads instead of video ads could be wasting money.
The result is often that companies can get many more qualified leads from video ads on lower budgets. A company that is not using video ads could be leaving as much as half their leads on the table.
Factors Influencing Video Costs
Not all promo videos are created equal, so different videos will have different marketing purposes, different levels of video quality, and different business results achieved through video marketing. The three most common factors that impact a company’s budget will include:
- Quality — There will obviously be a significant disparity in the rates a college film student will charges as opposed to what an experienced professional wants. The difference in quality will also be noticeable. Not all videos necessarily have to be of the highest quality, so some companies may be better served by paying less for a video that is not as high quality. Any video that appears to be less than professional may damage a company’s credibility though, so quality still needs to be a concern.
- Length — A longer video means a more expensive video, and it can be a huge cost increase just to increase run time from two minutes to three minutes. While you might only be seeking an extra 60 seconds, there are several concerns that go with that 60 seconds, including:
- Concept — A longer video will mean more elements being involved in the storyboarding process and require more time.
- Footage — Videos may need to be shot in multiple locations and require multiple days.
- Editing — More footage will mean a longer editing process.
- Type — The type of video can also influence video cost. Aerial shots can be more expensive, as can be super-slow-motion close-ups.
All of those factors can influence the cost of a video, so a company will have to consider how it will execute these tasks. A business can usually hire a person, do it themselves, or use a video maker.
Each option has its benefits and drawbacks, as well as associated costs.
Hiring a video production company
The first option for most companies when it comes to producing promotional videos is outsourcing entire projects to video production companies. There can be a wide range of costs depending on the size and scope of a project and the reputation of a company, and hiring a production company will usually be the most expensive option.
One major benefit to working with a video production studio is that a company can give complete ownership of a project to another party that has all the experience and tools to make a video happen. A company only needs to show up with its goal and checkbook to get a production studio to take them all the way from creative concept to finished product.
Some companies can also help companies plan their promotional activity, which many will need to help videos get traction. Equipment can be another benefit of a production company because a production house will already have all the tools it needs to make a video stellar.
The type of equipment a video production company has could influence the production shop a company chooses. When a business will need aerial videography shot in 8k, they will need to find a production house with a drone and a RED camera.
Promotional video production costs are built into a videographer’s fee. Another benefit to using a production studio is that it will provide an outside perspective.
Many in-house creative teams may get tunnel-visioned on their brand and not see how a video will be perceived by a target audience, the media, and general public. A production company can listen to your goals and aim to please, but the best ones will ensure they are creating something that will actually achieve your goals by resonating with the target audience.
A company usually receives one bill for its entire video project. The bill is usually calculated by a day-rate multiplied by the number of days to complete.
A more detailed breakdown of the activities within a day rate include:
- Concept — The creative space necessary to come up with an idea and unique approach to a video could take several hours or days.
- Pre-production — After an idea is approved, a team will need to create a shot list, schedule talent when necessary, and arrange permits for locations and gather equipment.
- Video shoot — Time spent shooting for the video production industry will be calculated by day rate, not hourly. When a shoot will be a single location and very simple, it is possible that shops could offer a half-day rate.
- Post-production — All the raw footage must be polished into a finished product. Editing for audio, color correction, and many other tasks occur during post-production, and this is often the lengthiest part of the process.
Hiring a video production company is a great option if you have the budget to afford video editor rates and you can find a company that has experience in your niche, but it’s not your only option.
Do it yourself
Although many business owners want to abide by the belief that doing something right means doing it yourself, that belief can be a little trickier with videos. A company could stand to benefit from creating videos in-house if they plan to shoot a lot of videos in the future and invest in the necessary equipment and training.
Let us break down some costs to doing videos yourself:
- Equipment — A bare bones equipment list and associated costs that include a video camera can range between $750 and $9,000. On top of this cost, you can also expect to pay between $10 and $200 for a tripod, $50 to $300 for a backdrop, $200 to $500 for lighting, $20 to $400 for a microphone, and $100 to $300 for video editing software.
- Locations — Shooting a video in a home or office will cost nothing, but a studio can be a couple thousand dollars and custom locations can be even more expensive. In general, promo video location costs are usually nothing for homes or offices, $800 to $2,000 for studios, up to $3,000 for custom locations, and $200 to $500 in meal and transportation costs.
- Actors — Certain film-heavy areas of the United States may require companies to hire Screen Actors Guild actors. An actor can cost between $50 to $400 per day as well as $100 in extra expenses.
- Post-production — Aside from the cost of video editing software, the biggest investment in post-production is time. The actual editing process can be incredibly laborious, and any motion graphics can drive video costs up. Video editing for an hourly employee could range from $300 to $900, sound editing can be between $300 and $900 as well, and music licensing could run you $45 to $720.
When you add up all of the Equipment, Locations, Talent, and Post-production costs, you end up with a total of between $2,000 and $15,720.
Using an Online Video Maker
There are many online video makers, and people will want to make sure to pick a company that has a solid reputation for video creation. Features you will want to be looking for will include video clips a company can use for its own videos, video templates that can be ideal for creating videos for Instagram, and licensed music that allows companies to find the right tunes at a fraction of the cost. A solid video editor system will also be necessary in most cases.
An online video maker can easily be the cheapest way for many companies to create their own videos as the costs will often end up being far less than the other methods outlined here. A good online video maker may only cost a company about $250 a month, possibly even less.
Digital Media Help in Houston, TX
SERP Matrix handles video marketing services for its clients, and we do brand videos, how-to videos, social media ad videos, and testimonials, among many others. We are also experienced in the most effective methods for distributing videos.
You can visit our website to learn more about some of the many industries we serve. SERP Matrix helps clients in various lines of business get the results they need and deserve.