How much should you spend on a promotional video?

When it comes to making a promotional video, one of the first questions that we are often asked is, “How much is this going to cost?” It’s a fair question, but the answer isn’t always straightforward. So I’m going to break down what goes into a promotional video budget, so you have a clearer picture.

The Importance of a Promotional Video in Marketing

Firstly, let’s talk about why you would want to produce a video for your business. Promotional videos are an invaluable advertising tool. They’re the prefect way to showcase your company in front of new customers, build anticipation and excitement for the products or services you offer, engage with prospective clients and MOST important build valuable trust with your audience.

With so many powerful reasons, promotional video production should be at the top of every business owner’s list when considering marketing strategy.

Budgeting for Your Promotional Video: What to Expect

The cost of your promotional video will depend on the goals you want to achieve and the elements required to make it. Here are some of the most common factors that will influence the cost of your video:

1. Production Quality: Do you want a Hollywood-style video or something more modest? The higher the production quality, the higher the cost.
2. Length and Complexity: A longer video or one with complex animations or special effects will cost more.
3. Location and Travel: Shooting on location can add to the budget, especially if travel is involved.
4. Talent and Crew: Professional actors and a skilled crew can make a huge difference but also impact the budget.
5. Post-Production: Editing, adding music, voice-over, and special effects – this stage is crucial and can vary widely in cost.

Here’s what we recommend you do before engaging with any video marketing company in order to have a better idea of what these video production costs might be.

Start by asking, “What do I want to achieve with this video?” Your goal directly influences your budget. Are you introducing a new product, or is it a general brand awareness campaign? Each objective might require a different approach and budget.

If it’s primarily intended for short form social media marketing purposes, then a lower budget might be more appropriate and sufficient.

It can be tempting to cut corners to try and save money, but remember, your video reflects your brand. A low-quality video might do more harm than good. It’s about finding the right balance between what you can spend and the quality you need.

When it’s time to get a quote and you’re approaching a video production company, be as clear as possible about your objectives. A good video production company will look to work with you in creating the right video asset or assets to achieve your objective and KPI’s rather than trying to shoehorn you into one particular type of video.

Also don’t forget to ask about any potential extra costs. These might include location permits, additional editing rounds, or unexpected travel expenses. As you may need to factor in a contingency budget for these unforeseen costs.

Pro Tip – You should always ask what is included in your quote.

Pro Tip #2 – Add some budget to push your video out on social media, the more people see your video the more impact it will have for you.

Always keep in mind that pricing will vary depending on what exactly is required for your video. Sometimes a 30 second ad for Instagram can cost more than a 5 minute video. BUT always be wary if the price seems too cheap for the solution offered.

Finally, think about the return on investment (ROI). A well-made promotional video can be a powerful marketing tool for a long time. We always say a Brand Story video should be effective for at least 3 years if there aren’t any major changes to your business and its offering.

Consider the potential reach, engagement, and conversion opportunities over those longer timespans when working out your budget.

Understanding your video production cost and budget is more than just knowing how much money you can spend. It’s about understanding the value it brings to your brand and the impact it can have on your audience. A well-planned budget ensures that your promotional video not only looks great but also delivers on your marketing objectives.

If you’re ready to start planning a promotional video for your business, let us know! We can help create an engaging video that highlights the benefits of working with you while staying within your marketing plan goals. Get in touch today!