How to Calculate a Video Marketing Budget - dummies

How to Calculate a Video Marketing Budget

By Kevin Daum, Bettina Hein, Matt Scott, Andreas Goeldi

The price you pay for video marketing can range from zero to an amount as high as your imagination and wallet can bear. Most television commercials are produced by advertising agencies, whose average budgets for a single commercial range from $450,000 to more than $1 million. But even the expensive world of television advertising is changing rapidly, with high-profile commercials being shot on small budgets.

Cost and quality don’t necessarily go hand in hand because you don’t always get what you pay for. Many factors can affect the cost of a video, such as these examples:

  • Actors

  • Crew

  • Locations

  • Costumes

  • Props

  • Royalties

  • Editing

  • Promotion

  • Equipment

Although you can easily spend tens of thousands of dollars on a video, cost doesn’t always equal quality. Always aim for the highest-quality product that’s available at the lowest price.

In video marketing, the story and message are far more important than the production values of the video. A video that’s beautifully shot but boring doesn’t affect viewers as much as does a low-budget video that entertains and successfully communicates its message.

Find inexpensive, inventive ways to tell your story and engage your audience. By keeping your video production costs low, you can maximize your return on investment (ROI) and have money left over to create additional videos.