Video marketing has quickly become the marketing go-to, as corporations large and small have seen its effectiveness to capture audiences. With professional video marketing, businesses are finding a significant increase in their return on investment. Video has become king. But how much does corporate video production cost?
Ultimately, how much your business should spend comes down to your overall marketing budget. When it comes to individual video productions, costs can range from $2,500 to $100,000 or even more.
Video Production Budgeting
How much does corporate video production cost? Well, the true answer is, it depends. Corporate video production can range anywhere from $1,000 for a simple video or professional video editing to over $50,000. With such a wide range it can be difficult to try to budget accordingly. Well, we want to introduce you to the budget model for video marketing.
The Bucket Model
The bucket represents the annual revenue of your business. In this example, the annual revenue is $5 million and from that revenue, 10 percent — or $500,000 — should be allocated as your marketing budget. With the rise in social media usage across all generations, the importance of digital marketing is steadily increasing and should be reflected in your annual budget. Over half of that 10 percent should be reserved for digital marketing, rather than in-person events.
Ultimately, that means about 2-3 percent of your annual revenue should go into video production and marketing.
Factors that influence Video Production Cost
The reason for the wide range in video production costs is that there are many different factors that can contribute to the final price. Most importantly, the quality and experience of the video production studio you’re working with can influence the cost.
For JL Video, most of our video projects cost a wide range to produce, anywhere from $2,500 to over $100,000. However, for a video project where our team is on-site, the common video production cost ranges from $10,000-$25,000.
Type of Video
Is this a product or service promo? Or are you filming testimonials? The type of video you intend to film will have some influence over the price as it affects factors such as the length and location.
If you’re doing a brand overview or a video about your office space, you need to decide how many employees will be shown. The more people, the more complicated and expensive the production can become. Based on the type of video, a video production team may need more hands and rentals for the set, props, and equipment. And, for larger productions, don’t forget the catering!
Not sure what video to film? Check some of our blogs such as three video content ideas for business. The first thing to consider is what do you want the video to do for you and your business? That can help decide what will be most effective to reach your goals, and a professional video production company can help with that.
Length and Location
The length of the production is another big contributor to the final price. Obviously, a two- or three-minute video will most likely cost more than a 30-second teaser. However, you should also consider what is being filmed and where.
A video with different settings will require more editing than a video that has an established backdrop. Additionally, a video production company may need to rent out space for the live production or move from location-to-location. Suddenly, that simple 30-second video is more complex if it needs to be filmed in five different locations. Ultimately, when it comes to the length of the video, the time and skill it takes to edit the video are what you’re paying for.
Often many forget about the extra touches that come with creating a professional video to make it look great. These editing features can be anything from editing hair and make-up, narration, and licensing fees for music. No matter what kind of video you are filming, you’re going to find the fees for this added editing.
That being said, these editing features and hours poured into making it look great can switch a video from something cheap to a more expensive, but also more-recognized, video marketing campaign.
If you’re going to spend the money on a video production, don’t try to skimp out on special effects. If you want the video to capture your audience and increase click-rates, quality is key. Ultimately, once again, the cost for editing will change depending on the type of video in production and the experience editors have.
Trust the Video Production Professionals at JL Video
JL Video is an award-winning video production company in Tampa, Florida, telling creative stories that customers remember. We’ve worked with billion-dollar companies such as Duke Energy and 3M. When it comes to investing in an experienced and professional video production team, look no further than JL Video.
Whether you’re looking for a video production company to film or edit your video, we can help you reach your goals with video marketing. Contact us today to discuss how we can move your audience to action with video.