Creating a marketing video could be just the thing to bring your business to the next level. If done correctly, videos can be extremely effective marketing tools and ensure you’re getting the attention and revenue you deserve.
However, before you dive into creating a marketing video, you should be familiar with the different factors that will affect your professional video production costs. In this blog, we will break down what goes into video production and how you can plan a realistic video budget.
What are Marketing Videos?
The main purpose of marketing videos is to address your audience’s problem, propose how your product or service can fix it, and then explain why the audience should choose your company over your competitors.
There are many different names or types of marketing videos, like: explainer videos, corporate videos, and promotional videos. However, all of these short films are primarily used to highlight a company’s product, service, or business idea.
Your video may even be used to present your company’s financial results to stakeholders, highlight a new initiative your company is partaking in, or be used as a business introduction for potential clients.
No matter what topic your video is focusing on, in order for it to be successful, it should be high quality, represent your company’s brand identity well, and incorporate a strong call to action. Your videos should be compelling and well executed, leaving your target audience informed, as well as intrigued.
5 Major Stages of Marketing Video Production
Making a marketing video usually involves 5 stages. Below is an outline you can follow when going through your video production process.
The development stage of video production is all about your concept and end goal. You’ll want to decide what you plan to get from this video and how you plan to achieve that.
This is also the stage where you can create a timeline and marketing budget for your project. (More on video marketing costs to follow below.) Understanding the purpose of your video is key, because it will serve as the foundation for the entire production process.
The pre-production stage is where you begin to figure out the details of your video. Preparing a schedule will help you stay organized and on track as you work.
You’ll also need to finalize your video script, as well as hire any staff or actors you need for your production team. Make sure you gather whatever equipment you may need and decide on location(s) for your video to take place.
The production stage is when filming happens. All of the raw footage and content that will be presented in your video is created. This includes any video, audio, B-roll, and/or cut-away shots. Depending on how long or complex your video is, production could take anywhere from one day to one week.
The post-production stage involves all the editing. This includes video editing, mixing audio and sound, adding sound effects, color grading, and/or adding any animation or motion graphics.
Another piece of this stage is video rendering and compression. These steps involve transferring your footage into an editing system, rendering it into a presentable format post editing, and eventually uploading it to wherever it will be hosted.
5. Marketing & Distribution
This stage should be where you share your final video to reach your target audience and the general public. Your end goal and overall purpose that you determined in the development stage should be fulfilled in your distribution of your video.
Professional Video Production Cost Breakdown
Professional video production cost can be broken down into different factors or categories. Not every element is necessary for every video, and depending on what type of video you’re creating, you may only have some of these expenses.
The prices for different services will also vary depending on what type of video production team you use. where your business is located. Below are the most common factors that will affect your professional video production cost.
Project Management and Project Coordination Expenses
Project managers or project coordinators are necessary to ensure your production costs don’t exceed your video production budget. In addition, these individuals help to manage the production timeline. When you’re on a schedule, you want to be sure that everyone is meeting their deadlines and staying on track.
Depending on who you hire for this role, you may spend anywhere from $25-$250 an hour. The experience of the project manager or project coordinator will be the deciding factor in how expensive their rate is.
Script Development Costs
This cost is only necessary if your video project requires a script. Hiring a professional script writer will help coordinate what your on-screen speakers will say. These prices will vary depending on the length of the script and the experience of the script writer.
If you choose to use an experienced script writer, you could spend anywhere from $50-$150 an hour. Many professional script writers will provide you with a video concept, storyboard, and script for your video project.
Cost of On-Screen Talent
On-screen talent is optional when it comes to video production. If you don’t want to be on screen, you’ll need to hire actors, models, or voice-over talent to be the face of the video.
The factors that go into these costs depend on their experience, as well as how much time they will be spending working on the project. In addition, the price for on-screen talent varies greatly depending on where you’re located.
Costs Associated with Visual Assets
Marketing videos often incorporate shots that supplement what’s being said on screen. In the video production industry, these are known as B-roll or cut-away shots.
These are visuals that can be used to describe a product or service in your video. Some of the most common types of supplemental visuals include:
- Still images
- Stock photos
- Licensed photos
- Custom photography
- Stock video
- Licensed video
- Custom video
- Illustrations/3-D elements
- Stock illustrations
- Custom illustrations
- Purchased 3-D models
The price of supplemental visuals will depend on the quality of the photos, videos, or illustrations, as well as the time needed to film the extra footage. Most often, cut-aways and B-roll shots make up about 15%-50% of your filming budget.
Costs to Add Special Effects
Depending on the type of video you’re producing, you may include special effects like animations, motion graphics, or title overlays. Using these elements will add to your overall video production budget. If you’re creating a brand video intended to sell a product or service, you may want to include a call to action with the help of special visual effects.
Some videos only require simple graphics, while others may be entirely animated. For basic special effects editing, you may spend anywhere from $65-$225 an hour. However, the cost of high-quality 3-D animation will depend on the complexity of the project and range anywhere from $95-$300 an hour.
The location of where you plan on shooting your video will also play a role in your production costs. There are multiple factors that will determine your video shoot location, such as:
- Are you shooting indoors or outdoors?
- Do you need a sound stage or studio?
- Will you be filming in more than one location?
- Are you shooting with a green screen?
- Will you need to travel between locations?
Considering these questions will help you decide what you have to incorporate into your budget. Studio rental, fees and permits, travel fees, and building rentals may be required depending on where you’re shooting. You’ll also need to take into account the total time you’ll need at your designated location.
Music Licensing Fees
If you intend to have any special sound effects or music in your video, you’ll need to add certain music licensing fees to your budget. Some websites offer license-free music. Just make sure you read all of the fine print to ensure the music is legal to use. There are also other options you can use, such as:
- Stock music (royalty-free)
- Licensed music
- Custom scores
Royalty free music could be anywhere from $11 for a 2-3 minute track. If you’re considering hiring an audio engineer, you could spend anywhere from $500-$1,000 or more depending on the ability, experience, and tools needed for the project.
Video Production Crew Costs
The size of your production crew will depend on the complexity of the project, the length of the video, and your budget. The people involved in the production of your video may include:
- Director of photography
- Camera operator
- Lighting professional
- Sound professional
- Grip professional
- Makeup/hair artist
- Video editor
- Motion graphics artist/animator
The cost of hiring any of these personnel will depend on where you’re located, their experience, and the amount of time they will be working for you.
Overhead Costs of Video Production
The overhead costs include any equipment or insurance required for your video production. In terms of equipment, this may include cameras, lights, sound, computers, and software. When it comes to insurance, this covers liability and workers compensation. These costs will vary depending on what equipment you use and the quality of those products.
Takeaway: How Much Does Marketing Video Production Cost?
There is no simple answer to the question, how much does a marketing video production cost? because of the variables that go into creating a video production budget.
However, there are baseline costs which you can use as a starting point. According to most production companies, the average cost of video production is about $1,000-$5,000 per finished minute.
Video production can be a valuable marketing tool, no matter how you decide to create one. The most important thing to remember is to set a realistic budget that will allow you to accomplish your goals and stick to it.