Video strategy - Episode #2 - How much does a video cost?

 

TV ads

The production of an average 30 second ad in Europe costs around $300 000 (according to the French Ad Producers Association). In the US, it is usually about $342 000 (according to the American Association of Ad Agencies). However, budgets do vary.

There are 4 main video categories:
  1. The likes of perfume and car brands have the most expensive TV adverts. Their budget ranges from a few hundred thousand dollars to several million. 
  2. Then, you get product ads that are usually between 100k and 350k. 
  3. Lower budget TV ads come in at a cost between 40k and 100k. 
  4. Much more simplistic adverts for local TV for instance using just motion design, have a price tag of 2k to 10k.

Usually, media spendings for TV range from $100k for small campaigns to several millions if you advertise on the main TV channels.

Superbowl ads

Budgets here are usually in the millions. It’s possible to make ads for cheaper. Doritos for instance, asked their fans to create their next ad. However, you have to take into account that you will have to spend about $5 million just on media. If you want this to have true impact, you need a particularly great video that will really stand out from the other ads.

Big events ads

The same can be said for the world cup and the Olympics. Production budgets range usually from a few hundred thousand dollars to several millions.

Digital ads

Digital creative ads are usually between 30k and 200k.

The budget of an ad depends on 4 things:

  1. The concept
  2. The media used
  3. The territory
  4. The time the video will be used

The budget for an internet ad is lower than on TV for instance because the rights and salaries for the actors, the director, and all the talents are lower.

Product Presentation videos

If you’re looking to showcase a product in the style of this video (for example: Front), budgets will be usually around 17k to 25k.

These kind of videos suit B2B companies especially well.

Motion design

Budgets for videos in motion design vary a lot, usually depending on their quality. You could for instance get a low cost video for 1k or 2k (bad quality motion design) or a much higher end version for 25 to 30k (Epipheo videos).

Most motion videos have a budget between 7 and 15k.

How much should you invest?

The right budget for your video is the budget that will maximize the impact of your campaigns.

A good rule of thumb for national campaigns is to allocate a fifth of your overall campaign spend to the production budget.

For smaller campaigns such as online, production budget should be between 25% to 50% of the overall campaign.

How to maximise the impact?

Making a video is a risk because although you know how much you invest, you don’t know exactly what you’re going to get. There is however a way to reduce the risk by testing your ad and maximizing its impact.

Before unleashing your media investment, you can test different versions of it. You can test different introduction, different call-to-actions, different lengths to see which version of the ad works best!

Most TV campaigns have a ROI between 1 and 1,8, but with this testing phase, your goal will be to increase that ROI to 2 or more for instance. Very successful campaigns can have a ROI that goes up to 8 or even higher.

If you’re thinking about making a video, let’s chat! We’re based in London, Los Angeles and Paris and we’ve developed a method that allows us to make great videos that don’t eat up your budget.

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