We know that building your marketing budget to include video isn’t the only way to make your marketing succeed, but research suggests that video is a huge contributor.
According to the digital marketing institute:
97% of marketing professionals say that video helps customers understand their products.
The web will be 80% video by 2021. (That’s NEXT YEAR, people!)
90% of people say that video helps them decide to buy.
So, every marketing budget should include video to stay competitive. How much does marketing cost and how much should you invest?
Setting Your Marketing Budget: An Overview
After you’ve got your basic marketing budget segmented off from your main budget think through the following questions.
Are you drawing traffic but not converting? Do people convert when they reach your page, but they have trouble finding it? Are you doing fine but you want to up your sales in general?
If you answered YES to any of these questions, then video marketing is for you!
We’re excited about that, of course, but you should be too. Now, you have a reason to fill your brand with colorful, engaging content.
So, let’s go over pricing.
You may have heard that video should make up 30% of your budget or something similar. Frankly, using a rule of thumb like this in your business is risky and wrong.
In reality, while every marketing plan should include video, your actual need to spend can vary. So, we’re going to go over the types of videos you may need and how much they typically cost.
Getting Granular: A Video Marketing Budget Breakdown
All video marketing budget breakdowns for cost will be estimated for 1-2 minute videos. Longer videos will normally see video marketing prices go up and shorter videos might see the same prices going slightly down.
Are you drawing traffic but not converting consistently?
Often the largest problem with your sales funnel is that you need to make your pitch appeal more to the emotions of your buyers.
Videos are great for this so you should look into explainer videos, product videos, or testimonial videos.
As far as video is concerned, the production value here should be good to great. For explainer videos, product videos, or testimonial videos, you’re going to be spending anywhere from $10,000 – $20,000. The price will fluctuate depending on production quality, duration, and number of videos.
You can cut down on this cost in a couple ways. First, by DIYing some things but, in general, your spend should be between, or even above these numbers for a good product.
Second, you might want to invest in an interactive video service like The Video Bot
Starting with a FREE TRIAL and moves to $19 and up to $159 for optional monthly fees.
Do people often convert when they reach your page, but they have trouble finding it?
Your business needs ads! You should invest in promotional videos or you should rework your ad strategy. (It’s often good to do both.)
Promotional videos are the very first thing that a customer will see so these need to be great to perfect. Normally, you can expect to spend a little bit more than you would for explainer videos at $20,000 – $30,000. The price fluctuates depending on the length, the overall quality, and the amount of videos.
If you need to invest in promotional videos but your budget is small, maybe consider checking out Express Videos by Rip Media Group. This service allows you to still get a quality product for a fraction of the price starting at under $2,900.
Are you doing fine but you want to up your sales in general?
If your company is here, then it’s time to start investing in your company culture and on building out your marquee piece!
Your employees are the face of your company in many ways so the more you invest in their experience, the more returns your company should start to see. Begin investing in company culture videos, training videos, and introduction videos. The quality of these videos should be good to great. You can expect to be spending between $7,000 and $20,000 for your video series.
You can also begin investing in a marquee piece. A marquee piece is a video that defines your company and it should be absolutely perfect – no exceptions. Marquee pieces are expensive because of the amount of time that they take to create.
You can expect to pay between $20,000 and $100,000 per marquee video or video series. The price depends on the genre, duration, and number of videos.
Bringing Everything Back Around
Surprisingly enough, this breakdown is still just an overview. It should help you guide your budgeting process, but there’s so much more that still needs to be considered.
Does your company want to try to DIY anything, such as providing your own script? What genre of animation or live action do you need? How much time, talent, and travel will your video project require?
For example, 2D animation and whiteboard animation is typically less expensive than 3D and live action.
The final price will also be impacted by your location, the size of your company, and the industry that you operate in.
Now that you’ve read this, it’s time to start building real connections in the world of video marketing for real world video marketing prices. That’s the only reliable way to create a comprehensive marketing budget breakdown. Reach out to companies that interest you and start a conversation.
You’ve already read this far, so why not reach out to Rip Media Group? We’ve been a leader in the video marketing space for years and would love to help you build out your marketing budget.