WHY ARE VIDEOS SO EXPENSIVE TO PRODUCE ?
A good video can communicate so much more than a text or a picture. It can work its magic with the users only if it is a good quality content video. On the other hand, a low-quality, cheap video will have a negative effect on the brand image.
Studies show that not posting a video at all is better than posting a low quality video. Studies also prove that including a video on your web page can increase your conversion rates by 80%. In email marketing, videos can boost open rates by 19% and click-through rates by 65%. Posting videos on your website will also boost your Google ranking, so that you’re more likely to show up on the first page of results.
There are many factors that affect the production cost of the video, the solution is to create a few good quality content videos instead of a dozen low-cost , low- quality content. However, investing in quality can create content that ages well and creates value for your company. So the question arises as to how much does a video production cost?
The simple answer is that it…“Depends”. The cost can vary from an amount of 1 lakhs to 15 lakhs and even more. It depends on various factors that are included in the pre-production, production and post-production phases.
The cost varies on the below mentioned factors:
The brief that you give to the company about the video
The purpose of the video
The duration of the video
Narrative style and many other factors.
Let us look at what points you should take into consideration while setting out a budget for the video you want.
These factors include:
1. The Type
The type of video is the primary factor that affects the cost of the video. There are numerous types of videos that you can create according to your business needs.
● Product Video - The videos which showcases the different product from all angles. Such videos can be used to post online on the website. Product videos are usually very stylish. They are a mix of live action shots and animation. Animation helps to showcase the internal workings of a product. Example - The ONE PLUS Video The cost involved in such videos are minimal and may not take up a lot of your marketing budget.
● Event Highlight Video - It includes a montage of clips from the event which is used in the following year. It can be used to post on the web page / social media or internally within the organisation as well. The cost for Event videos varies depending on how big is the area that needs to be covered, the total number of cameras that will be used to cover this event, Is the video live or will it need offline editing later, Is a switcher needed ? Is it for a webcast , do we have internet lease line? There are many questions that need to be answered before the producer can arrive at a final quotation. Example - Panel Discussion in 5 Star hotel or Highlights of a Cricket Match. Hence as per the scale of the event the cost may vary.
● Testimonial Video - Such videos usually include the Customer’s interview with some “ B-Rolls” to support the statements. You can save money if you take multiple interviews in a day. These videos can be used for TV purposes or to post online, for social media, brand website and Pre-Roll. Brands that use this approach in their TVc’s are Colgate and Dove.
● Instructional Video - Instructional videos are similar to product video, just here someone is explaining the way the product is to be used. These videos can be used to be posted online either on the web page or social media. The cost involved in these videos is minimal to medium. Brands create such videos for their youtube channel to help customers follow instructions easily in a visual manner. Majority of the “HOW TO” videos fall in this category.
● Explainer Videos - These videos explain a process or a complex concept, like how to use a product, what problem does it solve, how your product is made, or what your brand mission and vision Is. These are more evolved than instructional videos because they often require multiple locations or extensive animation. These videos can be used for both online posting as well as for internal presentation within the organisation. Such videos costs are also of a medium range.
● Documentary / Reality Videos - Documentary videos capture the authentic reactions of the people. These are usually made to depict the sensitive matters or to unveil the mysterious histories. These can be extremely funny or powerful. Such videos can be both made for TV as well as to post online for pre-roll, brand website, social media etc. the costs involved are medium to extensive.
● Ad - Films / Narrative Videos - Narrative videos tell scripted stories with actors. They have evolved into miniature films that are highly engaging and shareable. Such videos can be used for TV as well as to post online. The cost involved in the production of such videos are extensive.
A longer video require use of more assets for production which leads to the increase in the cost of the product. Though the cost does not change proportionately i.e. a two minute video does not cost double the amount of a one minute video. It does increase with the increased requirement of resources. In certain cases such as Ad-films a smaller video might cost more then another video of similar or longer duration of a different type.
3. Pre - Production:
It is the most important phase of any film / video production as it deals with planning. Pre-production tasks, such as writing a script, casting, location scouting, getting permits, and scheduling shoots, can take up a bit of your time and budget. If your script changes, your video production costs will likely change as well.
Production crew rates depend on their region, market, gear, and experience. If you need more specialized crew and equipment, such as for 360° video production, you may have to spend more. Hiring talent, such as actors or hosts, will cost you extra and you should include this in your budget. However, unless you’re doing a big commercial production for TV, you probably won’t need to hire talent. For branded short docs, testimonials, and product videos that are mostly interviews and b-roll, try featuring your employees or customers.
This is directly linked to day rates. Day rates are high because they generally include pre-production work as well as gear costs. Since most videographers charge by the day, your video production costs will go up with more shooting days.
6. Travel Time:
Before the actual shoot begins location scouting is done. It helps the director to breakdown his shots according to the location availability. You can spend as much money flying out a production crew to shoot on location as on the production itself. Besides the transportation costs, travel expenses also include hotels and meals.
A crew may need to rent cameras, lighting, grips, mics, or other film gear. The more time period they rent it for, the higher the charges get and therefore the cost of the video also increases. The equipment is usually hired for one shift of 8 hours, if the shoots exceeds one shift, additional charges need to be paid by the producer. If the number of days increases the cost of equipment increase proportionately. Eg if the camera package is 5000 per day/shift, then if the shoot extends to the second day, the cost will be 10000. Even if the equipment is used for 1 hour, a minimum 8 hour charge will be incurred.
8. Post - Production:
Much of the work that goes into producing a high-quality video is done in post-production, so budget well for this. In post-production, your video will go through video editing both offline as well as online, voice overs are recorded, then background music is created, finally all these elements come together in the form of the first cut — usually the video goes through 2-3 iterations before being finalised by the client / company. Once the content and edit is locked, colour correction and colour grading is done, to give the videos a cinematic look.