Video Budgeting 101
You may be thinking about doing video marketing for your next campaign. You’ve probably heard that some people have paid tens of thousands of dollars to create a short 5-minute video, meanwhile, others have done it with only a couple of hundreds of dollars. Maybe you’ve heard it’s expensive, time-consuming, and can be something that requires lots of resources. But it’s just video, how hard could it be after all? So what all goes into the costs of creating a video and why is there such a wide range in pricing?
There are infinitely numerous factors that affect the pricing of a production. The first thing you should ask yourself is, “What quality of video am I aiming for?” Do you want a sophisticated commercial or a social media style post or perhaps something in-between? Depending on your answer, here is a list of factors that will determine your overall pricing.
Equipment: Film equipment is constantly evolving and pushing the boundaries. A video can be created using cameras that are valued at over 100k dollars or with a simple iPhone. This is a major cost in production. Equipment load out are customized for each project depending on the budget of the client and the quality desired. Talk to your production team about what you would like to accomplish and what quality you are aiming for.
Labor: A small production house like us works best with a small crew of specialized individuals; a director, a cinematographer, a lighting technician, a sound operator, hair, make-up, etc. That’s already a lot of people who have to get paid for their labor. However, this method ensures that the job can be done in a time-efficient manner and have all aspects of production be well taken care of by their respective specialists. On the other hand, you can hire a one-man-band freelancer who will cost you less - after all, it’s just one person. But be careful! You may be limited with the scope of the project and some production areas may suffer from a lack of targeted attention.
Postproduction: This is always an expensive side of video production because it’s so time-consuming. Sorting through footage, downloads, file backups, editing, color correction, special effects, sound mixing, motion graphics, animation, etc - there is a lot that goes on. The scope of work may vary, but at least you can get a more constant price if billed by the hour. The hourly rate will stay the same, and it will just depend on how many bells and whistles you want on your video and how many hours it will take to accomplish the work. Ask your production company how many hours they estimate each project will require to get a good sense of how much you’ll need to spend.
Logistics: Keep in mind that things like transportation, studio or location rentals, hiring talent, catering for crew and talent, insurance policies, accounting, production safety, and many other factors must also take place in order for the production to run smoothly. You may not need all of these things, but you should expect to at least cover the basics to ensure that your production is run in a safe manner. Do not cut corners here!
Ultimately, all of these factors affect the pricing of the production. We recommend letting your production company know what your budget is for your project. This will help them tailor their service to help you stay under budget while also delivering the highest quality possible. Remember that big brands spend millions of dollars for 30-second commercials while influencers on TikTok are producing ads for brands for much much less using their iPhones. Define the needs of your project, come up with a budget that works for you, and find the right team who can deliver the quality you seek.