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21 March 2023Advancing technology is making video marketing a “must-have” for businesses looking to impact their audiences. But how much does corporate video cost? We’re breaking down your costs and sharing our best cost-saving strategies below.
In years gone by, professional-grade video was an expensive marketing approach, saved exclusively for corporate giants that could afford the multi-six or seven-figure price tag. Shooting, editing, and distribution required expensive film and even more expensive equipment. Most costly of all? Paying to place an ad on network TV.
Enter the digital era of Zuckerberg, PPC ads, and Instagram.
Marketers now have the capabilities to reach any consumer at their fingertips on marketing budgets small and large. Thanks to social media and improved connection speeds, video marketing has reached the mainstream. The amount of online video users watch has doubled since 2018 – and your brand needs to reach and cash in on that audience.
Though some businesses try to DIY video, they struggle to gain a competitive edge over those in their industry that source trusted creative professionals. Fortunately, advancements in the video marketing industry have helped agencies like ours offer stunning video solutions at affordable prices. So that 30-second video production cost doesn’t have to break the bank.
But how do you set a video marketing budget? And how much do video ads cost? Read our video-making cost breakdown.
How much does it cost to make a video?
86% of video marketers say video has effectively generated more leads for their businesses. Outsourcing your video to a local production agency costs up-front but saves you time and money in the long run as more revenue rolls in.
Here’s how a creative video agency charges for its work.
Fees and Scope
Some agencies charge hourly rates between $75 to $150 for their services, while others prefer to receive a flat fee based on the time and scope required.
It’s impossible to give a one-size-fits-all cost for video production because so many production elements shift with every project. Think of it like a general contractor building a custom home. A 6-bedroom, 4-bath detached mansion in Toronto will cost significantly more than a 2-bedroom bungalow in Hamilton or Burlington. It’s all relative.
Producers are a creative agency’s project managers, creating accurate quotes based on their industry knowledge and reasonable cost estimates for every element. As long as the scope of the creative work doesn’t change during the production process, a credible agency will stand by its cost estimates.
How much does it cost to shoot a video?
Generally speaking, you can expect to see flat fee projects cost between $10,000 to $50,000. Simple video services may cost as little as $5,000, and big productions can climb to $100,000+.
The 5 Elements of Your Video Ad Costs
Most producers approach each video project as a fresh challenge, costing out the elements to provide an accurate estimate every single time. Here are the five biggest elements of your marketing video production cost breakdown.
#1: Video Length
Counterintuitively, a longer video isn’t always more expensive. A 30-second promotional video cost isn’t necessarily less than a 5-minute testimonial video cost. Shorter videos are often used as pre-roll ads on YouTube and other platforms, giving you less time to make an impact on viewers than a 10-minute long corporate video featured on your website.
Shorter videos tend to be higher in production value with professional actors and cutting-edge shots to get results. When you’re sourcing an agency, you need to be comparing apples to apples, meaning you can’t compare a cost estimate for a short video to estimates you’ve received for other video marketing costs.
There are two locations referred to in the video production industry – in-studio or on-location, aka “everywhere else.” Shooting video in front of a green screen or white cyc wall in the studio offers a controlled and cost-effective environment, but many videos use other locations to build your story’s character and credibility.
On-location filming comes with associated travel costs, permits, extra setup, and teardown at the end of the day. But don’t let on-location costs scare you – there are still reasonable options at every price point. Filming in a client’s office can often be quite affordable, though you’ll want to be mindful of the interruptions filming may cause your business and vice versa.
#2: Location
#3: Talent
Most videos use people as a powerful storytelling element. If you source real customers for your interview-style testimonial, you’ll pay less than hiring professional union actors.
When using actors, pay rates vary based on their participation in the shoot. Non-speaking roles sit at a lower pay scale than a principal actor, though all talent is paid a session fee and a residual or buyout fee.
Many scripts call for B-roll footage, like exterior building shots and other supplemental shots, to help move your video’s narrative forward. Filming B-roll often requires extra production time, so being mindful of the extra costs can help you better budget for your video.
#4: B-Roll and Stock Footage
#5: Motion Graphics and Animated Elements
Marketing videos are quite different from feature films, marrying traditional ad elements with stunning creative visuals. Similarly, many videos turn into a moving advertisement of sorts, with motion graphics and animation boosting audience comprehension and brand recall.
Motion graphics and animation can sometimes replace more expensive video elements like actors, props, and locations. Balancing live-action shots with text and graphics can help keep production costs down without losing any professional quality.
Video on a Budget: Reducing Your Production Costs
Video marketing doesn’t have to be expensive. With the right preparation, you can see a healthy 5:1 ROI for your marketing videos and, better yet, 10:1!
Here’s how to best reduce your video marketing services costs:
- Understand your purpose. You don’t need to know the exact video you need, but your marketing goals should be clear to create the best concept to achieve them.
- Organize your budget. Streamline any processes to make the production easier and avoid unnecessary production costs. Use any resources you have available, like an ideal shoot location or eager volunteers to cut some of your costs.
- Create evergreen video content. If web video production costs are a luxury in your marketing budget, produce a video that won’t be outdated 6 months from now. Maximize your ROI with video content that sees results season after season.
- Stay flexible. Don’t get attached to a creative idea so tightly that you’re blinded to even better solutions. Trust your video production team and go with the flow, leaving space for the best video solution for your budget to arise.
Get a Free Video Production Estimate
Our full-service video production agency in Toronto and the Greater Hamilton Area has over a decade worth of experience working with clients to create videos that make a big impression and maximize their ROIs.
Reach out and we’ll walk you through our process with a customized cost estimate for your next big project!
Talk to a video production expert.
Our Hamilton-based team blends form with function to create stunning, well-balanced visuals that convert.
- 286 Sanford Avenue North, Suite 308
Hamilton, Ontario, L8L 6A1
Contact us to discuss your project needs and get a free estimate rolling.