We’ve spent a lot of time explaining how videos can help with SEO, make your customers more engaged with your brand and products, and drive up sales. Give all the advantages that videos offer, the costs associated with videos should really be thought of as an investment, not an expense. Still, there are different levels of video quality that are available, and most businesses are looking for value: what is going to bring me the biggest benefit for the amount of money being spent. Let’s take a look at how video production is typically priced so you can get the best value for your dollar.
There are basically five levels of video quality. For the purposes of ecommerce websites, we are typically looking at only the last 3, as the two upper tiers of quality are really geared at large corporations or movies. Remember, we are looking for value, and while movie quality videos may generate a lot of income at the box office, you’d have to sell a lot of widgets to pay for those kinds of production costs.
1 – Hollywood
A Superbowl commercial that is looking for a no-compromises approach would fit into this category. the costs for a 1-2 minute video are likely to be $100,000 to $1 million plus. In view of the costs, you must be clear and certain of your needs.
2 – Premium
High end firms that want to add top-level talent and high end tools to create a signature piece might be able to justify a cost of $25,000 to $50,000 for a 1-2 minute video.
3 – Professional
A typical corporate online video falls into this price range. Explainer videos that scream credibility would be a good use for this level of quality, such as for a recruitment video. High end products, such as selling a business would also justify a cost of $5,000 to $20,000 for a 1 to 2 minute video.
4 – Semi-Pro
It should be no surprise that this is where most product videos fit in nicely. Better quality but affordable, this level of quality can be used for capturing education events, internal training, virtual trade shows, and of course sales demos. The cost is typically $1,500 to $3,000 for a 1-2 minute video.
5 – Amateur
The do-it-yourself approach using basic consumer video equipment and self-taught talent. Think YouTube and TikTok. This is fast and inexpensive, so it is ideal for personal blogs. The cost is often free, once you have the basic equipment.
All of these costs are based on multiple factors including:
- Time – The length of your video is a major factor in the cost. This has to do with the number of hours/days required to shoot your footage as well as post-production time (we’ll discuss this in a bit). Some production companies will also charge “day rates” for each day of shooting. Day rates tend to be high and can include equipment, pre-production and more.
- Type of Video – Whiteboard animation videos, slideshows, stock footage, background music all contribute to the cost of the final video.
- Travel Expenses – Depending on who you choose to film your video, there may be significant travel expenses included. This can include hotel rooms, meals, vehicles and more.
- Location – In addition to travel costs, some locations may cost a fee. Try to find cool and appropriate locations that you can shoot in for free or for a minimal cost.
- Equipment – Most video crews will charge equipment fees. Even if they own their own advanced equipment, these fees can cover insurance and other costs related to up-keeping the equipment. Smaller crews may need to rent appropriate equipment depending on the shooting requirements.
- On-Camera Talent – Are you planning on acting in your video? Do you need to hire a professional?
- Post-Production – Most of the hard work in creating a video happens after you finish shooting. This includes editing the video, adding text and graphics, voice-overs, music, and so much more. Each company will provide a certain number of edits so make sure to check that before getting started.
A 2- to 3-minute professionally produced corporate video typically costs anywhere from $2,000 to $7,000. Most production companies agree that the average cost of video production is usually around $1,000 to $5,000 per finished minute, and we agree that it is a good starting point to consider when budgeting.
That is a lot when you have hundreds of products and you want a demo video for each product. Which is why I recommend a package approach. WebStores creates packages based on the number of product videos you are looking to create videos for, and by bundling these you can significantly drive the cost per video way down.