Video content is a game-changer in today’s landscape, but making that shift may require a learning curve. Wondering how much you should budget for your company videos? Learn the key factors influencing video production costs in 2024 to help you budget effectively.
In this post, we’ll cover:
Estimating the Cost of Video Production
So, how much does video production cost? This is one of the biggest questions businesses have.
Costs can range widely, from a few hundred dollars to tens of thousands. While a budget video production like a DIY video might only cost you a software subscription, the average cost of video production by professional companies is around $50 to $149 per hour or $3,000 to $50,000 per project.
Higher-end productions for larger corporations can exceed $200,000.
Keep in mind that higher quality often comes with a higher price tag. Even more so, video production involves more than just filming.
Pre-production, scriptwriting, and post-production all add to the cost and should be accounted for in your budget, not to mention the type of video project you need.
Some things to ask yourself include:
- Do I need animators?
- How many videographers will this project require?
- How much editing work is needed?
- How can I maximize the project budget in terms of deliverables?
Factors with the Biggest Impact on Price
There are several factors that influence video production costs. Here are the big ones:
Video Length and Complexity
An hour-long documentary will be more expensive than a 15-second ad. This is because the documentary requires more scenes to shoot and raw shots to edit.
Complexity also comes into play. Is this an explainer video that doesn’t require much editing? Or will you need to change locations or even build sets?
Crew Size
Some projects need a full team of camera operators, animators, directors, and lighting specialists. Others just need a few videographers.
Crew size influences how much you’ll pay for a video—the more crew members you hire, the higher it’ll be.
Production Quality
Higher production quality requires professional gear, an experienced crew, and advanced editing. That said, videos using advanced technology and high-end equipment like drones, 4K cameras, and specialized lighting setups can drive up the video production cost.
Location
Filming in particular locations can add to travel expenses. How many people will have to travel? How much gear will they need to bring?
If it’s a small crew and everything can fit in a van, that’s great! But if it’s a big project, expect a higher expense in traveling. Add to that the location fees that some places might charge.
Talent
This depends on the video project you want, but some projects need professional actors or voice-over artists. This will add to the fees, so expect your video production cost to increase.
Licensing Permits
Licensing permits are required when you have to use materials you don’t own the rights to. This includes, but are not limited to, photos, music, and maybe even effects.
Music and Sound Effects
Speaking of music, original music scores, soundtracks, and sound effects add to the cost. And these don’t come cheap.
The cost will also depend on the length of the original music needed for your video project and how much editing is required to make it happen.
Wardrobe and Makeup
Professional wardrobe and makeup services are there for a reason. They don’t just make the people pretty; they make the scenes and the people come together.
These professionals are here to ensure your casts are presented in the best way possible.
Timeframe
Tight deadlines may require more resources, including hiring more people or dealing with overtime pay for the crew. Some video production companies also charge a rush fee.
Overall, the time required to produce and finish a video project plays a vital role in the cost. This is why the earlier you can finalize the project, the better.
Information You Need to Get an Accurate Estimate
A cost estimate can help you choose a production company that suits your needs and budget. The items below will help you negotiate and get an accurate pricing sheet for your video production needs.
Project Scope
Define the purpose, length, style, and goals of your video. Is it a mini-series or a full-length documentary-style video? Or a short video like those trending on TikTok?
Detail what you want to achieve and who your target audience is. This will dictate all the deliverables the production company must fulfill for a successful project.
Budget Range
Some companies tailor their services to meet your financial limits. Be upfront and clearly communicate your video production budget range.
This will help you filter out production companies and find the ones that are flexible with rates.
This will also ensure you get the best possible outcome within your budget.
Script and Storyboard
Provide detailed scripts and storyboards to help production companies better understand the project and give an accurate videography price sheet.
Include dialogue, narration, and key points in the script, and visually outline each scene in the storyboard.
This is where your in-house creative team will come in handy. You may also consider tapping into companies offering pre-production services.
Location and Schedule
Specify where and when the filming will take place to coordinate logistics and estimate costs. Remember, the more time spent filming and editing, the higher the costs will be.
Cut down costs by providing a clear shooting schedule to avoid delays and interruptions.
As a business, we all want things to be done on time, but with creative projects like this, you’d want to have a buffer with the scheduling.
Special Requirements
Inform the production company of any special needs like animation, visual effects, or specific equipment. Include details on any particular scenes that may require unique setups or technology.
This will allow them to plan accordingly, source the right talent and tools, and provide better pricing estimates.
Deadline
Set a clear deadline to help the production team plan and allocate resources efficiently. This will help you avoid delays and get the finished video on time.
If you need this project rushed and finished ASAP, expect a higher price point. So, when possible, provide the production team ample time to work without too much time pressure.
Different Types of Video Styles
There are various video styles to suit the different needs of every business. Some you may know, some may sound new.
Here are popular ones:
Explainer Videos
These are simple and straightforward videos that explain a product, service, or concept. They are typically 1-3 minutes long, and the average cost ranges from $1,000 to $10,000.
2D Animation Videos
These are animated videos using flat, two-dimensional graphics. Videos like this are great for storytelling and simplifying complex ideas.
One-minute 2D videos usually go for $2,000 to $15,000 per project.
Corporate Videos
Corporate videos are ideally used for internal communications, like employee onboarding, training, or showcasing company culture.
This may include company overviews, staff interviews, and event highlights.
Depending on the length, corporate videos usually cost between $2,000 to $20,000 per project.
3D Animation Videos
These three-dimensional, highly immersive animated videos are suitable for product demos and typically cost between $5,000 to $50,000 per project.
You may hire a freelance animator from places like Upwork, or if you want top-quality output, definitely opt for a reputable video production company that is flexible with budgets.
Commercial Videos
These are high-quality, polished videos that are meant for advertising on TV or social media. They often feature actors and require a high production value.
On average, they can cost you around $50,000.
Why Hiring a Video Production Company Could Still Be Worth It
Despite the costs, hiring a video production company can be worth it. They bring expertise, high-quality equipment, and creative skills to ensure polished video content for your business needs.
Video production companies are also experts in storytelling. Whatever message you want to convey—be it an interval corporate video or one for your audience—the right company will nail it.
While DIY solutions might seem cheaper, they often lack the quality and impact of professionally produced videos.
In the long run, professionally made video content that effectively conveys your message to your target audience may actually give you your investment back.
Bottom line: Understanding video production pricing and how several factors affect it will help you budget effectively and maximize your resources.
Video Production Cost FAQs
How much does it cost to produce a video in the US?
Video production costs for short projects can be around $10,000, while bigger projects and longer videos can go upwards of $50,000.
How much should I budget for video production?
For a simple video of three minutes or shorter, you can start at $5,000. Budget more for bigger projects.
Is paying for a video production company worth it?
Hiring a video production company is definitely worth it if you want to make the most of your video project. These companies are composed of highly skilled professionals, which will save you a lot of headaches.
License this cover image via Supamotionstock.com.
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