How to Create A Video Production Budget
In today’s marketing, having video content is no longer an option. Videos help you build your brand, capture leads, and gain customers. But how do you budget for it?
The first question marketers have about video is, “how much will it cost?” Unfortunately, because every video is different, there’s no easy answer. But there are guidelines to help you figure out how to budget for your specific video production.
When budgeting for all the creative assets your brand needs, the best approach is to start with the tactic that will bring you the best return. Today, that's video. Divide the rest of the budget up for other outlets.
So how much should you allocate for your video production budget?
A study by Magisto reported that most businesses spend more than 25 percent of their marketing budget on video. This is a good baseline for anyone.
To determine how much your video production will cost, consider these factors.
Strategy
Determine your goals. Are you looking to raise awareness with commercial production, improve engagement with animation, raise investment capital with a personalized message, or earn more conversions with a demonstration? Knowing your goal will help you decide which type of video you need.
The type of video you need determines the assets, equipment and skill set required to make the video. Animation and special effects can require designers, artists and animators. A demonstration video may need an actor or actors, voice over artist and a lot of planning. Commercial productions may need actors, locations, vehicle rentals and more.
The quality of your video content will have an impact on your budget as well. Do you want the cheapest actor available, or someone with experience? Do you need a beautiful location, or a simple office in your building? If you’re creating an animated explainer video do you want readily available template graphics or custom, personalized graphics?
Where you’ll use the video determines the format(s) and, to some extent, the length it will be. You should know beforehand if your video will be seen on YouTube, Vimeo, Instagram, television, social media, etc. Different video platforms have different requirements for video. In addition, if you plan to use your video on multiple platforms, the multiple formats and various cuts required may require additional work that will increase the cost. And generally speaking, longer videos cost more.
Once you have the strategy, move on to the creative assets by determining what you already have on-hand to give the production team (images, previous video content, style guide, branding elements, etc.), what assets the production team will need to create themselves, and how soon you need your video.
When making these decisions remember the axiom: “Fast, Cheap, and Good… pick two. If it’s fast and cheap, it won’t be good.”
The script
The script for your video can be a good indicator of how involved your video production will be. Generally speaking, the more complex the script is (one interview with a team member vs. having multiple actors, filming in your office vs. needing a location) the more the video will cost to produce.
To determine the cost of your video, do what a video producer does and break the script down scene by scene. Identify all the elements that could add to the cost. Consider the actors, the location, the amount and type of graphics you envision, locations or special effects.
Do you already have footage, or must it all be filmed or created in the studio? If you want something in the video, it must come from somewhere.
In conclusion
The cost of your video production is in all these details. Once you have an idea of everything you need, the price will start to become apparent. Try to keep that cost to about 25% of your total budget and you’ll be on track for a successful project.
https://www.magisto.com/reports/video-market-size#:~:text=The%20new%20rules%20of%20engagement%20%2D%20Belonging&text=Video%20marketing%20already%20dominates%20marketing,instead%20of%20hiring%20ad%20agencies.