Video ads have become crucial for promoting products and services on social media, where they help brands engage audiences and stand out in a crowded digital space. However, producing high-quality video content doesn’t have to mean high costs.
This guide outlines budget-friendly approaches to video creation, covering the key factors that influence production costs, and offering practical tips for making impactful ads without overspending.
Key Factors Influencing Promotional Video Cost
Several factors influence promo video pricing. Knowing what these elements are, greatly helps you to plan and prepare your video production budget. Let's look at a few factors related to promotional video cost below.
Length of the Video
One of the first factors to consider for your promotional video production costs is your video length. Take for instance the difference between a 30-second video versus a 1-minute video. Given the different lengths, each video will have a different impact to your overall budget.
Generally speaking, a longer video will have a higher production cost because these lengthier promo videos need additional time for shooting and editing throughout video production, plus more crew members. Focus on keeping your video ad or promotional video short not only for effectiveness, but affordability.
Complexity and Concept
The more complex and intricate your video production process, the higher your promo video costs. When creating promotional videos, those with simpler, more direct messages and less technical components, often means fewer resources and lower production cost.
Video content that requires special equipment, multiple locations, custom graphics and special effects, detailed sound design and music licensing, makes a huge difference in production budgets and can greatly affect promo video pricing.
This promo video for the Honda Elevate features numerous locations, including metropolitan shots, waterscapes, and desert scenes. The brand more than likely worked with a production company, going beyond basic editing to create a promo video more resembling an action movie than a car commercial. It also highlights various video camera angles and action shots incorporated during post production, like drone footage and special video effects.
While it's certainly an effective promotional video (it currently has 118 million views on YouTube), such videos are complex both in design and concept development. Nor do they come cheap either - the promo video cost for a 30-second car commercial can run upwards of over $500,000.
Production Type
The final factor to consider for your video production cost is the production type - that is, whether you choose to produce your promo videos yourself by doing so in-house, or if you outsource the work to a video production company.
While you might save on your video production cost by going the DIY route, many video production companies provide advanced features like multiple camera angles or drone shots, offer beneficial resources, and boast a talented in-house team.
Video agencies and tech companies will work with you to flesh out your marketing objectives and target audience for your promo videos, ensuring your brand positioning remains front and center throughout your promotional video production.
A third option for cost considerations, freelancers have diverse skills that also influence the total cost and overall quality of your promotional video production. For example, if you're looking for assistance with one element of your video production, like concept development, parsing out raw footage, basic video editing, outsourcing stock footage or sound effects, and even video marketing. Freelancers' huge range of skills provides support for aspects of your promotional video where you need it most.
Breakdown of Common Costs
Whether you're filming simple animated videos from the comfort of your home studio, or your explainer video involves an entire production team to align with your company's marketing goals, keep in mind the following potential price points as part of your video production cost. This not only ensures you maximize your budget, but that your polished video is high quality and relevant to your target audience.
Pre-Production Costs
Throughout pre production, you'll want to keep video scripting, storyboarding and planning efficient to not only boost overall production quality of your resulting promotional video, but to maintain a low video cost.
Most promotional videos' elements are easily manageable in-house or via online resources. However, video production companies can greatly assist by shouldering manual tasks like outsourcing talent, determining appropriate resources, and selecting the right tools to shoot your video.
Consider your budget for special equipment and tools of such videos and compare options. For example, how much does it cost for video editing software versus hiring a freelance video editor? Would outsourcing this task really effect the overall video quality and end-result of your promotional video?
Other roles to consider during pre-production as part of your overall promo video costs include:
- Script writers
- Professional actors
- Production assistants
Production Costs
Throughout your actual promo video production phase, keep in mind finances related to filming, animation, and any necessary equipment or software. If you're look to amp up your video production efforts, a camera operator can set you back $400 a day, while a Director of Photography can cost upwards of $1500 per day.
While you can save on your video budget by reducing your technical needs and keeping these sorts of tasks in-house, a video agency can turn your content from so-so into successful videos. This makes a huge difference, especially when you're looking to set your branded videos apart. This is especially important across social channels, where you're competing for the time and attention of your target audience.
Post-Production Costs
The post production process entails video editing and adding text overlays to your promotional videos. The post production editing stage often takes significantly more time than the previous two phases given the amount of time and energy that goes into editing your promo video.
Video production companies work with your raw video footage to incorporate shot materials and color, and advanced visuals. This stage will also see bringing in voiceovers and music. Researching in advance how much does it cost for music licensing, as well as outsourcing voiceover artists, can save you from any surprise costs throughout the video editing process. You'll also know exactly what to request if you do decide to collaborate with a production studio.
Tips for Creating Budget-Friendly Promotional Videos
Perhaps a fancy video production company is not in your budget - not all of us can afford celebrities in our promotional video production cost, like Ken Jeong in Airalo ads.
Not to worry - below are a few tips and tricks for keeping your video content costs low while still creating promotional videos that hook viewers across your social media pages and convert customers.
DIY Filming & Editing Tools
You don't need the latest equipment for an efficient video production process. When used effectively, basic or free tools and resources work fantastic for putting together simple ad creations and promo videos.
Generative AI like ChatGPT and Claude by Anthropic can assist with script writing, so long as you give it accurate prompts to get started. Graphic design tools like Canva and iMovie are also great in post video production.
Repurposing Existing Content
Previously recorded footage and existing pieces of video content can be easily repurposed into new promo videos and explainer videos for your social media platforms. It saves video production costs and maintains consistent brand positioning by reusing existing visuals of your products or services.
Consider Motion Graphics Instead of Full Filming
Sure, filmed content adds to the overall professionalism of your next promotional video. However, if you're looking to cut your promo video cost, animated text or slides can add creative yet engaging elements in post production.
Airalo's promotional video explaining how eSIMs work, is a great example of a brand using fun, creative motion graphics to delight and engage viewers.
Not only is the cartoon and color design eye-catching, but the effective use of sound design and voiceovers makes for an effective promotional video that poses a problem, offers a solution, showcases Airalo eSIMs as a product, and highlights the benefits.
Final Considerations: Balancing Cost with Quality
The next time you find yourself asking "how much does it cost to produce my explainer video?" or "is it really worth including in the video budget?", the answer will almost always be, "it depends."
Your promotional video production cost can be as much or as little as you want - no two promo video budgets are created equal, so long as the end result meets your video marketing objectives.
If you're looking for that unicorn of excellent video quality combined with high production value, especially for digital ads where viewers expect short, direct content, then it might be worth collaborating with a production company. While working alongside video production companies can increase your overall promotional video production cost, they have a wider breadth of tools, equipment, and staff to help you realize your vision.
That said, you can create amazing and effective explainer videos with very little up front cost. Free editing software and a home production studio might suit your promotional video needs just fine. There are many affordable solutions available on today's market that can still be impactful with the right message and visuals.
Cost-Effective Video Ads That Deliver Results
Creating budget-friendly video ads is achievable with a focus on clear messaging and strategic choices. By understanding cost factors and using accessible tools, you can produce impactful content that engages audiences and maximizes your budget.
