Every week I have a handful of conversations that all start exactly like this…

Interested Party: How much does a video cost?

Me: It depends.

Both: (awkward silence)

I hate this.

So, in this article I’m going to try and demystify “it depends” by giving you the factors behind that answer. Let’s start with the broad range of prices for popular marketing videos. The higher the price, the better quality of the video.

Price ranges of popular marketing videos:

Live Action Explainer Videos – $12,500 – 50,000+

Animated Explainer Videos – $5,500 – 20,000+

Testimonials – $5,500 – 20,000+

Brand or Founder Story – $10,000 – 30,000+ executed in a no frill documentary style.

Promo/Brand Commercials – $100,000 – 500,000+

Creative Campaigns – $250,000+ includes video, photography, and ad development.

You’re probably saying to yourself. Those are some pretty wide ranges, what gives?

I’ll break that down for you…

The video production process can be be broken down into three major phases. Within each phase are elements that factor into the cost of your video

1) Pre-Production – This is the planning phase. It includes research and discovery, concept, scriptwriting, production planning, casting, hiring crew, and scheduling.

2) Production – This is the lights, camera, action phase. It includes the physical production and bringing everything that was planned in pre-production to life.

3) Post-Production – After production wraps this where the video gets honed. This phase includes editing, sound mixing, music, coloring footage, and adding effects – basically things that are done on computers.

Now that you understand a little about the process, lets talk about the factors that affect price – the “it depends” stuff.

The easiest way to think about how factors affect pricing is to measure their complexity. That means, when a producer says “it depends” – they’re actually trying to figure out how complex each factor will be to attain the best quality video for your goals.

Let’s use this complexity scale that uses Simple-to-Complex as a gauge for cost. The more complex the factor, the more experienced labor, equipment, and time will be required to execute it. Which increases the cost of your video.

Let’s jump into the factors and see what they are and what makes them complex…

Every video starts with a concept. That concept then gets turned into a script. In general, the higher the complexity of the concept and script, the more you’ll need to budget for your video. If you want something that is going to help you stand out in the market place, then you’ll want higher quality.

Simple = No Script. Things like interviews or testimonials. Maybe just a loose outline of an interview.

Complex = High-concept videos that require clever script writing and dialog. Something like a television commercial is complex.

This is the planning phase. So, how complex is the plan?

Will we need to plan to shoot at multiple locations? Do we need a large cast? Will we need a small crew or a large crew? What are the other safety concerns? Will there be a long casting process? What time of day are we shooting? How much, and what kind, of equipment will we need? What kind of permits and insurance are needed?

These are just some of the complex issues that producers will have to solve in effort to make your video happen.

Simple = Shooting an interview and b-roll with a small crew at your location for one day. This require less planning and coordination.

Complex = A video that needs to shoot in the middle of Downtown Los Angeles on a Tuesday afternoon and includes a large cast and crew. This requires managing a lot of highly complex issues.

The location where your video is going to be shot will play a major role in cost. Will it be shot on a busy city street, in a sound stage with a white background, at your place of business, or no location(for animation)? The more moving parts the location has, the more things like travel, time, insurance, permitting, staffing, security, and coordination it will take.

Simple = A single location shoot.

Complex = A shoot with multiple locations around the country or globe.

High-concept videos usually have more moving parts and require more effort and longer productions. Sometimes requiring multiple shooting days. Coordinating for multiple days becomes complex. The more days you need the more it will cost.

Simple = One day shoot at one location.

Complex = 10 day shoot at multiple locations across the country.

If your video requires achieving a cinematic look, special effects, a giant set piece, or intricate costumes – then it’s going to require special equipment. That includes things like special cameras, lights, and equipment. You’ll also need skilled and experienced crew members to operate everything.

Simple = Small camera(DSLR) shoot that needs less experienced labor.

Complex = Cinema quality camera and equipment that needs more experienced labor.

Labor is the most important factor in the cost equation – you need to have the right people for the job. Generally, the more complex the concept, the more experienced labor you’ll need. That includes directors, talent, artists, craftsmen, producers, and crew. The experience of your labor(cast and crew) should match the complexity of your video, so you can achieve the best quality.

Experience = Higher Quality
Higher Quality = More Value Delivered

Simple = Less experienced crew can be used for simpler shoots where quality isn’t a priority.

Complex = High-quality, high-concept, videos will need more experience labor

Post-production is where your video comes to life. It’s where the raw footage from production is edited, colored, tweaked and polished into a visually stunning story. Post-production needs to account for how complex the editing, coloring the footage, motion graphics, visual effects, and any 2D or 3D animation will be.

Simple = Editing a 60 second snippet of a podcast that includes adding text overlays.

Complex = Editing a 30 second commercial that includes green screen footage and 3D animation and special effects.

Sound design and music play a big role in driving pace, evoking emotion, and enhancing the mood of your video. So it’s important to make the right choice that elevates your story.

Simple = Minimal sound design and budget friendly stock music purchased from a website.

Complex = All sound effects are made in a professional studio and original music scored by a composer. Also, licensing popular is another option that adds to cost.

For animated videos you can remove location and any other things that need to be physically done on set. Planning becomes a little simpler but everything else above still applies. That said, animated videos can be as, or even more, complex than a live action shoot. It all depends on the story and style being executed.

Simple = A 30 second 2D animated text video.

Complex = 2 minute 3D animated explainer video that looks like a Pixar movie.

Video production is all in the details. The better informed you are, the better your next video will be. I hope this article helped you gain insight into the factors and variables that go into your next video project. And most important of all, now you know what a video producer means when they say “it depends”.

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