As the allure of traditional ads and copy fades, video marketing has become popular due to changing social trends—people are watching more videos in general—and the medium’s efficiency. Using video marketing (depending on budget) leads to better engagement with your consumers, as well as higher rates of conversions.
Even so, it’s important to plan ahead when dealing with video due to the sometimes-higher costs involved. The key is to find a balance that gives you enough to create the best possible videos, without hampering the rest of your efforts. Here is what you need to know to create the perfect marketing budget for your video.
Forget What You Know about Video Ads
Traditionally, video advertising is an expensive undertaking. TV ads can range into the hundreds of thousands of dollars just to produce, without mentioning the cost of placement. Today, an iPhone and an idea are really the only things you need to create a video. The advent of social media and the ease of access for videos means that you don’t need to worry about placements, TV networks, or high costs.
Previously, ads were assumed to simply be more expensive than their ROI in many cases. Now, however, the ease with which you can make high-quality videos means costs are significantly lower. As such, your calculation is not trying to maximize your budget, but rather finding the point at which every $1 you spend brings you a return on investment (ROI) of at least $1.
What Are the Real Budget Costs of Making a Video Today?
Even with the ability to make videos on your own and upload them, sometimes you need professional assistance, and that can add to your costs. As such, having a video budget allows you to hire the right people and make sure your video quality is great without having to pinch pennies. These are some of the average costs for different video professionals (keep in mind that these may change from provider to provider):
- Animated Explainers tend to cost between $5,000 to $10,000 to produce from start to finish.
- Hiring actors for a video can start at $100 per hour but can quickly increase depending on the star power you need.
- Script writers can start at $100 to $300 per hour but may instead prefer to give you a flat rate (anywhere between $350 to $1000 is standard) for a completed project.
- Video editors usually charge between $100 and $200 for their services, with projects running anywhere between $200 and $800, depending on your needs.
These prices may seem daunting, but keep in mind that while these services seem expensive, you can always find more affordable (and free, if you’re willing to do it yourself) options.
And it goes without saying that our very own Swish video maker app is an enticing solution for small business owners who want to create a professional ad without going over budget.
What Do I Get When I Pay for Video?
When it comes to video marketing, you really get what you pay for. Even so, there are several levels between the two you can choose from (prices are based on a 1 to 2-minute video):
- Semi-professional videos cost roughly between $1,500 and $3,000, and give you affordable prices, though the quality may vary widely. These are best left for viral efforts or capturing live events.
- Professional videos cost between $5,000 and $20,000 and come with a guarantee of credibility and a basic standard of quality. Even so, these may not be standouts
- Premium quality videos feature the best of the best in terms of tools and talent and result in better quality videos that give you a wow factor. Even so, they can run anywhere between $25,000 and $50,000, and mean you really need to trust the team.
- Hollywood videos are not quite accessible to most people, but they come with the ultimate guarantee of success and feature the best talent all around. You’re not looking at any price under $100,000 when it comes to these.
How Do I Choose My Video Marketing Budget?
To settle on a budget, you can follow these simple strategies:
- Decide what your goals are, and how you’ll measure ROI (remember, it’s not always about dollars). Are you looking to attract new users, improve engagement, get more conversions, or focus on post-sales?
- Settle on your style of videos and determine what you need for each of them. Animated explainers require a designer and an artist, as well as voice-work and editing, for instance. Viral videos, on the other hand, require a phone and some creativity.
- Start small, and then grow. There’s no need to give yourself a million-dollar budget if you haven’t tested your strategy. Start with a small budget and adjust upward as needed, giving yourself time to see how each level works for your goals.
- Allocate your resources to the right video channels. YouTube and Instagram have different video requirements and audiences. Overspending on the wrong one could hurt your bottom line.
Make your Videos Shine
Your video budget should be flexible enough to let you optimize it. Even if you start small, you can find excellent ways and free tools to reduce your costs, and find the best applications to help create amazing videos.
Check out more of our small business video marketing guides here!