How to Create A Video Production Budget

The Big Question

One of the first questions our clients ask about video production is “how much will it cost?” This is often an extremely difficult question to answer because every video is different. Here’s an example we often use to help explain this.

Imagine you want to build a house. So you go to a contractor and ask how much it will cost. They won’t be able to tell you at your first meeting because there are a lot of things they don’t know. For example, how many floors do you want? What kind of materials does it need and what kind of quality? How many square feet will it be? How many windows are there and how big are they? Will the house be built on flat ground or on the side of a hill? All these things factor into the cost of a new house.

It’s the same with video production. Though in this case the questions are different. We ask if your video needs a voice over. Does it require actors? Do you need help with your script? Do we need to find a location to film your video? How many hours will be needed to film it? How many graphics do you need? What style of animation would you like? The list can go on and on.

Now That That’s Out of the Way

We know you’re reading this article to get an answer to your question so let’s get started. You’ll need to identify the who, what, why, and where of your video content. The more information you know, the easier it is to know what your budget needs to be.

The Strategy

Determine your goals. Are you looking to raise awareness with commercial production, improve engagement with animation, raise investment capital with a personalized message, or earn more conversions with a demonstration? Knowing your goal will help you decide which type of video you need.

The type of video you need determines the assets, equipment and skill set required to make the video. Animation and special effects can be simple, or they can require designers, artists and animators. A demonstration video may need an actor or actors, a voice over artist and a lot of planning. Commercial productions may need actors, locations, vehicle rentals and more.

The quality of your video content will have an impact on your budget as well. Do you want the least expensice actor available, or someone with more experience? Do you need a beautiful location, or a simple room in your office? If you’re creating an animated explainer video do you want to use readily available template graphics or custom, personalized graphics?

Where you’ll use the video determines the format(s) and, to some extent, the length it will be. You should know beforehand if your video will be seen on YouTube, Vimeo, Instagram, television, social media, etc. Different video platforms have different requirements for video. In addition, if you plan to use your video on multiple platforms, the multiple formats and various cuts required may require additional work that will increase the cost. And generally speaking, longer videos cost more.

Once you have the strategy, move on to the creative assets by determining what you already have on-hand to give the production team (images, previous video content, style guide, branding elements, etc.), what assets the production team will need to create themselves, and how soon you need your video.

The Script

The script for your video can be a good indicator of how involved your video production will be. Generally speaking, the more complex the script is (one interview with a team member vs. having multiple actors, filming in your office vs. needing a location) the more the video will cost to produce. The same goes for the length of the script. If your video is going to be 5 minutes long, that will be more expensive than a 1 minute video.

The Final Step

Talk to your video production partner and give them all the information you can. Use the steps above to round out the scope of the video. They know the costs for all aspects of video production - talent, location, time needed for filming, animation, etc. - and will be able to put together a quote based on what you tell them because once you have an idea of everything you need, the price will start to become apparent.

We always tell clients that the scope and budget is a little fluid until all the final decisions are made. For example, clients may want us to hire actors to portray certain roles in their project. But they may decide to use team members instead of actors to cut down on costs. And because there are so many things that go into video production, there are a lot of things that can be tweaked. Don’t be afraid to work with your creative partner agency to arrive at a number, and a scope, you feel comfortable with.