Video content is the best way to engage audiences regardless of the usual high production cost. Companies from every industry are tapping on video production to bring their businesses to the next level.
However, video production can be a long and laborious process which might be a pain to think about. But with the right tools, and knowledge, you would be well on your way to producing quality videos efficiently for your organisation.
Now you’re thinking “But how much will that roughly cost?”. That’s what we’re here to help you with so let’s jump right into it!
Why is Understanding Video Production Costs Important?
The whole production process involves a range of expenses that includes equipment, rental, crew salaries, location fees, royalty free resources, and more.
You don’t want to be in a position where you run out of money before your project is complete. Or worse, compromise the quality of your final product.
A good understanding of production costs can help you make more informed decisions about your project. For instance, if you’re trying to meet a tight deadline, you may need to decide on whether you’ll want to invest in high-end equipment or hire more crew members.
To top it all off, it also helps with vendor, contractor and client negotiations. You may be able to get better rates or contracts that are more favourable to your needs if you know how much you’re working with.
How Much Does Video Production Cost?
To get a gist of the cost, we have to break it down to the following factors:
A. Pre-production Costs, Such As Scriptwriting
To put it in short, pre-production is everything that happens before you can start actual production.
That includes scriptwriting. In Asia, the industry rates can vary depending on factors such as the experience and expertise of the writer, the complexity of the script and the filming location of the video. In general, professional script writing services can range from $300 to $3000 depending on the writer’s experience.
A scriptwriter can actually impact the quality and success of your project. This is due to the fact the script is the foundation of your video or animation. So, you would want to look at their portfolio and cost before signing an agreement or contract with one.
B. Production Costs, including Equipment, Crew, and Talent
Similar to your pre-production costs, production costs can also vary greatly depending on your filming location, scope of project and quality of equipment and talent needed. However, cities like Tokyo, Singapore, London & Hong Kong do tend to cost more.
Equipment: The rental of a high-end camera can range from $500 to $1000 a day while lighting equipment can range from $50 to $500 per day.
Crew: A basic crew for a small production that includes a director, cameraman and sound engineer can cost anywhere from $500 to $2000 per day. A bigger production may require more crew members such as makeup artists, production assistants and gaffers and that might increase your cost.
Talent: A more popular, well-known actor may cost you tens of thousands of dollars for a single day’s work whereas a lesser known actor may cost either a few hundred or thousand dollars.
Before you commit to something, get detailed quotes from multiple vendors, suppliers and talent so you can compare prices to ensure you’re getting the best value for your budget.
C. Post-production Costs, such as Editing and Visual effects
The scope and complexity of your project is crucial here. If your project is big, you would want to engage with resources that have more experience. You don’t want your final product failing miserably.
Editing: A basic editing package can cost you around $500 to $1000. However, if you have a more complex project at hand that requires additional visual effects, sound design and colour correction, it can cost you anywhere from $2000 to $10,000 or more.
Visual Effects: Simple visual effects (VFX) work such as compositing or basic motion graphics can cost you around $500 to $3000. If your project needs 3D animation or more complex motion graphics, it can cost you anywhere from $10,000 to $50,000 or more.
Sound Design and Music: Usually, a basic sound design package can cost you around $500 to $1000. But if your project requires custom music and sound composition and mixing, it can cost you anywhere from $2000 to $10,000 or more.
D. Length and Complexity
The length and complexity of your video are two other important factors you’ll have to consider. The longer and more complex your video is, it would require more time and resources to produce it.
You’ll need more time in all aspects of the production process. Longer videos mean more crew and equipment rental fees and complex videos mean special VFX, animation or multiple location filming. All of which add to your total production costs.
Different Types of Video Production and Their Average Cost
Explainer Video Cost
These are short, engaging videos that help simplify a product, service or concept. Explainer videos are usually used by businesses and organisations to either introduce products and services and educate customers or simplify complex ideas.
Low-End: A simple 60-second explainer video that includes basic animation, script and voiceover can cost you around $1000 to $3000 as a whole.
Mid-Range: A 60-second video with slightly more advanced animation and motion graphics, complex script and professional voiceover can cost you around $3000 to $7000.
High-End: If you’re looking for a more complex 1-2 minute 2D explainer video with the best quality animation and sound design, that may cost you anywhere from $10,000 to $20,000. The price goes higher for 3D animation style ($20-60k).
Corporate Video Cost
These are videos created by a business or organisation for internal or external communication purposes. Corporate video comes in various forms such as brand, recruitment, training and testimonial videos.
Corporate videos are typically designed to showcase a business or an organisation, promote their products and services or communicate important information to their employees or stakeholders.
Low-End: A 1-2 minute, simple corporate video shot at a single location with basic editing, voiceover and music can cost you around $2000 to $5000.
Mid-Range: With more advanced editing, multiple location filming and interviews with company executives or customers, this 2-3 minute video can cost you around $5000 to $12,000.
High-End: A high production value 3-5 minute video that includes special effects can cost you anywhere from $20,000 to $60,000 or more.
Product Video Cost
These types of videos focus on showcasing the best features of a product that can appeal and attract customers to their brand.
Low-End: A 60-sec product video shot at a single location with basic editing, voiceover and music can cost you around $500 to $1500.
Mid-Range: A 1-2 minute video package that includes advanced editing, multiple location filming and motion graphics can cost you around $2000 to $5000.
High-End: A high production value 1-2 minute video, inclusive of advanced motion graphics and sound editing can cost you anywhere from $5000 to $15,000.
Other Types of Videos Cost
Event Videos: Captures the key highlights of an event like a product launch, conference or a company celebration. The cost can range from an estimate of $1500 to $8000 or more.
Social Media Videos: Created for social media platforms, these videos are meant to be very short and engaging. The cost can range from an estimate of $500 to $2000.
How to Estimate Video Production Cost
Now that you understand the factors that kind affect your production cost and roughly how much each type of videos cost, how do you go about estimating your production budget?
A. Understanding The Scope of The Project
With your goals, ideas and objectives of your project in mind, ask yourself the following questions:
- What type of video are you creating?
- How long will the video be?
- Do you need to hire talent? Or freelancers?
- Will your video require special effects or animation?
- Do you need to shoot on location or in a studio?
Through these questions, you kind of get a rough picture of how your budget will look like.
B. Determining The Level of Quality Required
The level of quality will definitely impact your cost. With a higher budget, you get a higher production value. So ask yourselves these questions:
- What type of camera and equipment will you be using?
- What level of experience and skill do you want your crew members, talent or freelancers to have?
- Do you need high quality animation? Or high quality audio mixing?
- What’s the final output format of your project?
C. Creating A Detailed Video Production Costs Breakdown
Once you have followed the two steps above, you can start creating a detailed budget plan.
This budget breakdown should include all of the costs related to the project and that includes:
- Pre-production Costs (e.g script writing and storyboarding)
- Production Costs (e.g equipment, crew, talent)
- Post-production Costs (e.g editing, motion graphics, animation, audio mixing)
- Additional Costs (e.g licensing and location fees)
It’s time to bring out your excel skills and create a killer budget plan. The more accurately you estimate the total cost of your project the better. Estimating your costs takes careful planning and a strong attention to detail. But the time spent here will go a long way.
According to Statista, people consume an average of 19 hours of video content every week in 2022. It’s no surprise that companies are turning to video content to help set their brand apart from others.
While video production might sound like a chore, with a proper understanding of its cost and a kickass budget plan, you can easily produce quality content. I hope you found this guide useful in planning your next video production!