You know you need a compelling product video to showcase your offering and boost sales. But pricing out video production leaves you with more questions than answers. How much should you budget? What factors impact the costs?
This article breaks down all the key elements that determine product video costs so you can make an informed decision.
The Importance of Product Videos
Before we dive into costs, let’s quickly look at why product videos are so vital for modern businesses. According to studies, viewers retain 95% of a message when they watch it in a video, compared to just 10% reading text. Videos also directly impact buying decisions – product pages with videos get boosted conversions of 84% on average.
With stats like those, it’s no wonder that 86% of businesses now use video as a marketing tool. A high-quality product video can be the difference between making a sale or losing a prospect’s interest. So while costs are certainly a consideration, the potential returns make product videos well worth the investment for most companies.
Product Video Costs for Various Scenarios
Like any professional service, product video pricing can vary tremendously based on several key factors:
Production Style
One of the biggest cost determinants is the production style and techniques used:
Live-Action: These video shoots use real environments, professional-grade cameras, sets or locations, and actors/extras. They tend to be the most resource-intensive, with costs ranging from $1,500 to over $20,000 per finished minute according to this business.com guide.
Animation: Animated videos can feature different styles like 2D, 3D, motion graphics, etc. Simple explainer videos with basic animation may cost around $5,000 – $10,000. But more complex animation can increase costs significantly.
Explainer Videos: Usually cheaper than live-action since they rely less on elaborate sets, actors, etc. Pricing varies based on the animation style’s complexity.
Video Length
Logically, longer videos take more time, effort, and resources – so they come with higher price tags. Here are some typical cost ranges based on duration:
- Under 1 minute: $1,000 – $5,000
- 1-3 minutes: $5,000 – $15,000
- Over 3 minutes: $15,000+
Keep in mind that costs rise exponentially as video length increases since more pre-production work (scriptwriting, storyboarding) is required. A 3+ minute scripted video could cost $500+ just for the script.
Complexity Factors
Beyond just length, a video’s overall complexity is a huge cost driver:
- Special effects, 3D modeling, and motion graphics all increase costs
- Advanced editing techniques like color grading take more time/effort
- The number of revisions needed can quickly inflate the budget
Talent & Location Costs
The costs for on-screen talent and filming locations can make up a significant portion of the total budget:
Voiceover artists charge $100 – $1,000+ per finished minute
Professional actors have varied rates based on experience and union status
Using a controlled studio environment is cheaper than filming on location
You may need to pay for extras depending on the production
So before greenlighting that Broadway star or exotic filming locale, make sure you account for those costs!
Example Cost Estimates for Common Video Types
To give you a better sense of typical pricing, here are some sample cost ranges for various common product video styles:
Basic Product Demo
- Cost Range: $1,000 – $5,000
- Includes: Script, voiceover, basic editing, stock footage
Mid-Range Explainer Video
- Cost Range: $5,000 – $15,000
- Includes: Animated visuals, professional voiceover, explainer elements
High-End Product Showcase
- Cost Range: $15,000+
- Includes: Live-action filming, actors, complex editing, motion graphics
Additional Costs to Consider
Don’t forget to factor in a few more potential expenses when budgeting:
- Music Licensing: Using royalty-free music is cheaper (one-time cost) vs licensing popular tracks (recurring fees).
- Equipment Rentals: Renting cameras, lighting, audio gear, etc. as needed instead of buying can lead to production savings.
- Marketing & Distribution: Paid promotion for your video on channels like social media ads, YouTube pre-roll, influencers, etc. Costs vary but plan for at least a few hundred dollars.
What’s the Right Budget for Your Product Video?
So how much should you realistically budget for your product video? There’s no one-size-fits-all answer, as you can see from the wide cost ranges we’ve covered. It depends heavily on your goals, production needs, and priorities.
As a general rule of thumb: For a basic, no-frills product overview of decent quality, expect to pay $3,000 – $8,000. Need a mid-range animated explainer hitting all the key messaging? Budget closer to $10,000. And if you want a high-production showstopper video, be prepared to invest at least $15,000 – $30,000.
Of course, the final costs are dictated by your specific requirements. Let’s look at two hypothetical examples:
Example 1: Simple 1-Minute Product Demo
For a 1-minute live-action product demo video:
- $500 scriptwriting
- $1,000 voiceover
- $1,500 filming (studio)
- $2,000 editing Total Estimate: $5,000
Example 2: 2-Minute Explainer Video
For a 2-minute animated explainer:
- $800 scriptwriting
- $400 storyboards
- $6,000 animation
- $1,200 voiceover
- $800 music Total Estimate: $9,200
The bottom line? Prioritize your must-haves, get clear quotes, and make sure the expected ROI justifies the investment.
Final Words
Thanks to this guide, you now understand all the key factors that influence product video costs – from production methods and video length to revisions and talent fees. You’ve also learned tips to maximize quality while staying within your budget constraints.
Whether you’re a small business needing a simple explainer or an enterprise launching a big campaign, there’s a video production solution for you. Define your goals, determine a reasonable budget range, and find the right video team to bring your vision to life impressively yet cost-effectively.
