Are you wondering how much of your total marketing budget should be devoted to video marketing?
52% of marketers increased their video marketing budget in 2022, and 66% planned to increase it in 2023.
So, as you can see, video marketing budgets are on the rise. And with 66% of consumers saying they’d prefer to watch a video rather than read a text to learn about a product or service, the trend is here to stay.
While this doesn’t mean that you should spend your entire marketing budget on video, this can give you a good idea of how important investing in video marketing is!
As a video production company, we know a thing or two about creating a video marketing budget 😉
That’s why we’ve shared some tips with you below. But first, let’s review some insightful stats about companies’ marketing budgets in 2022.
Marketing Budget Stats In 2022
According to a recent survey from HubSpot, this year, marketers split their marketing budget as follows:
- 31% of marketers allocated between 21 and 40% of their total marketing budget to video marketing.
- 30% allocated between 41 and 60% of their total marketing budget to the creation of video content.
And here’s a breakdown of how much companies spent on video marketing this year:
- 5% of marketers spent between $1,000 and $5,000 on video marketing.
- 10% of marketers spent between $5,000 and $10,000 on creating video content.
- 10% spent between $60,000 and $80,000.
- 16% spent between $80,000 and $100,000.
- 10% spent between $100,000 and $200,000.
- 3% spent between $300,000 and $400,000.
How Much Does It Cost To Make A Video?
The answer isn’t straightforward, as it depends on what kind of videos you want to create and what quality you’re after.
But while there isn’t a one-size-fits-all answer to this question, here’s a rundown of the average costs of producing a video:
- Explainer videos cost between $5,000 and $10,000 to produce.
- A corporate video can cost anywhere from $1,500 for a basic video to over $50,000 for premium footage.
- Hiring actors for your videos will typically cost you $100 per hour.
- Scriptwriters usually charge between $100 and $300 per hour. Of course, you can also negotiate a flat rate for the whole project.
- Video editors will charge between $100 and $200 for easy-to-edit footage and over $800 for videos requiring more work.
- A shooting day with a professional video production crew, including a director, a videographer, and an audio technician, starts from $3,000 a day and can quickly go up, depending on the crew’s experience and the type of gear required.
How To Create A Video Marketing Budget?
Define Your Goals
Defining your goals before shooting your videos will allow you to tailor your video content and ensure it resonates with your audience. And this, in turn, will prevent you from wasting money on video content that doesn’t appeal to your target market. So, start by asking yourself whether you’re looking to generate new leads, increase your brand awareness, or boost your conversion rates before coming up with a plan of action.
Determine What You Need For Each Video Type
Some videos will cost more to produce than others. For instance, a high-quality corporate video might require you to hire a specialised video production agency. An explainer video will require you to hire a designer, along with voice-over and editing professionals. On the other hand, social media stories can be created on the go using a phone and some creativity.
So, define the types of videos you need and allocate more budget for essential pieces such as corporate videos and product explainers.
Allocate Your Budget Based On Your Buyer’s Journey
The buyer’s journey refers to a buyer’s path to purchase. As a consumer, you probably never wake up in the morning and decide to buy something from a random brand. You go through a specific process where you first become aware of a brand before considering and evaluating it and ultimately committing to purchase from it.
Now, the awareness phase is where we’d recommend spending the most money when it comes to video. That’s because the individuals in the awareness stage of the buyer’s journey don’t know anything about you, your brand, and your products or services. This means that you need to produce high-quality videos that will instantly catch their attention and prompt them to learn more about you.
But as your viewers move down the sales funnel, they no longer need to be impressed. They need educational and practical content that will help solve their problems. The good news is that you don’t need to spend much money on these videos. As long as the content is valuable, your audience will keep watching.
Budget For Video Ads
While video ads can seem expensive, they’re critical to any successful video marketing strategy.
Now, even though Facebook and Instagram ads are still very effective,YouTube has recently replaced Facebook as the number one platform when it comes to influencing consumers’ purchasing decisions. Investing in YouTube ads is, therefore, a no-brainer. YouTube advertising costs, on average, between $0.10 and $0.30 per view, and companies spend, on average, $10 a day on their YouTube advertising campaigns.
Plan Your Video Content All At Once
While this can seem tedious, planning your yearly video content all at once is a great way to benefit from economies of scale and stretch your budget. For instance, you could combine video production days and negotiate a discounted rate with a video production agency as you combine projects.
How To Choose The Right Video Production Company?
Even though you can produce some of your video content using your phone and free editing software, video quality matters these days. In fact, 62% of people are more likely to negatively perceive a brand after watching a poor-quality video.
So, as mentioned before, you should allocate part of your marketing budget to high-level videos with awareness goals.
And for these videos, you need to partner with the right video production agency. At DreamCube Productions, we pride ourselves on consistently delivering high-converting videos for our clients within budget and on time. Whatever your budget is, our team of passionate videographers and video marketing experts will work towards achieving your sales and marketing goals.
Don’t hesitate to get in touch! We’d love to discuss your needs and provide you with some options!