You want to create a promo video for your company, but the price disparity has you scratching your head.
To help you make an informed decision, we’ve collected quotes from over 50 video production companies worldwide and identified all the factors influencing cost.
After reading this article, you’ll learn every aspect that affects promo video pricing, so you can identify the best partner and type of video to fit your budget.
How We Assessed Production Cost
In preparation, we reviewed over 50 companies from 13 countries in the space to provide a comprehensive analysis and what you can expect to pay for promo video production. Our team sent out inquiries to dozens of freelancers and agencies of all sizes to assess the cost of a promo video in 2023. We asked a series of questions using our knowledge of production cost and based the inquiry on two example projects.
How Much Does a Promo Video Cost?
After receiving quotes from over 50 video production companies, we found that a high-quality promo video will land between $4,000 and $15,000. While most quotes fell in this range, we received pricing estimates as low as $2500 - $8500 to hire freelancer and up to $150,000 for live-action and complex CGI video production agencies.
Factors that Affect Promo Video Pricing
The pricing range is so broad because of several factors.
Freelancers can charge less because they have less overhead and may be in the process of building up to a higher rate. Avoid freelance promo video producers, especially at a low rate, because they likely don't have the experience or provide the quality your business needs to increase traffic. You can't afford to be part of their learning process for a freelancer looking to establish a position in the market.
Our findings suggest that reputable agencies of all sizes typically charge between $4,000 and $15,000 because they have the experience and infrastructure to produce quality promo videos. Below are some factors affecting where your video will fall in the average price range based on the agency. (We'll cover video production factors in the next section.)
Established companies with a solid client base and extensive portfolio charge more for their services than up-and-coming companies. While you must pay more for a video from an agency with brand recognition, the choice is typically a safe bet. However, choosing an up-and-coming company could get you the same or better quality for less because the agency is still making a name for itself.
Agencies based in countries with strong economies, more competition, and higher taxes must charge more for their services to stay in business and attract talent. However, just because a company has an NYC address doesn't mean it will deliver a more effective promo video.
Promo video quality is the number one pricing factor. Agencies that consistently deliver high-quality work must pay their designers and creatives a competitive rate and can attract enough business to demand a higher rate.
Companies like YansMedia, DemoDuck, and Buck Design have been in the business for years because they produce premium promo videos. As a result, these agencies have built a reputation and the infrastructure to deliver quality at scale.
Other Pricing Factors
The other pricing factors that will affect the cost of your promo video are specific to your video. For example, a 5-minute explainer will cost more than a 30-second promo at the same agency simply because it is more work.
Other factors to consider include:
- The complexity of the project – Advanced graphics or special effects require skilled labor and will drive up costs.
- Type of video – The style of video has a huge impact on price, for example, animation is less expensive than live action. In addition, different styles of animation will warrant various price points; simple 2D animation is a more cost effective option than 3D.
- Logistics – Special equipment, locations, travel, and additional crew members will increase your total cost.
- Talent – Actors, extras, and a production crew will dramatically impact the price.
- Editing – Time and resources required in editing drive up costs, especially if you have complex editing requests.
Tips on Assessing Production Costs
The time and resources required to produce your video will affect the cost. Therefore, when assessing an agency's services, we highly recommend considering their pre-production, production, and post-production process. Inquiring about each stage of your video's development will give you an idea if the agency is allocating your budget appropriately.
When assessing production costs for a promo video, it's essential not to overlook the pre-production phase. While visuals are undoubtedly important, marketing videos are, first and foremost, about marketing, so it's necessary to ask potential studios about their research process and how they create a concept.
If you decide to handle pre-production on your own, budget between $50 to $500. Of course, well-known and experienced creative directors may charge more, but this range is a good starting point.
One pro tip for pre-production is to hire a scriptwriter who specializes in creating scripts for the type of video you produce, whether it's an explainer video, a demo video, or a walkthrough video. This will ensure that your video delivers the right message to your target audience and achieves your marketing goals.
The quality of the visuals in your promo video speaks volumes about your company. When assessing production costs, ensure your video is custom created to fit your branding. Curated content is essential in today's digital age, where many videos use the same templates and online creators, making your company appear dull, unprofessional, and redundant.
You'll need to execute the voiceover, sound design, and final edits necessary for a polished video at this stage.
Voiceover costs can range from $30 to $2,000, depending on several factors, such as the quality, usage licenses (commercial, international, local, online, or TV), and specific accents or languages. For example, Saudi Arabic VOs are known to be extremely expensive.
To find the right voice for your video, we recommend sourcing on voices.com. This platform allows you to organize an audition, where different voice artists record a small part of your script and place a bid so you can make the best choice possible.
Sound design is another crucial aspect of post-production; costs can range anywhere from $150 to $600. In addition, you'll need to choose the right music track for your video, which we recommend sourcing from Premiumbeat.com. This platform offers only curated, high-quality music tracks that will enhance the overall impact of your video. With the right voiceover, sound design, and music, your promo video will be ready to capture your audience's attention and drive your marketing goals forward.
How to Choose a Promo Video Studio Based on Budget
While there are many factors to consider when choosing an approach to producing a promo video, your budget will determine your limitations. We've outlined the most cost-effective strategies below based on cost.
Remember to still consider the pricing factors we've covered.
Up to $2500
If your budget is under $2,500, we recommend a DIY approach. For example, you can record your promo video with an iPhone or your screen if you promote a digital or SaaS product.
Avoid freelancers and companies with 3 employees or less that will promise a quality promo video. Your project will likely be outsourced or produced with a drag-and-drop design template.
Find a foreign animation studio that has built a solid portfolio and has been in business for at least five years. They will have the talent and capacity to deliver a high-quality promo video for 1/3 of the price of US or Western European-based design agencies.
Some excellent options include:
- Yans Media
- Demo Duck
Choosing the Right Animation Style
Avoid live-action and complex animation in this budget range. 3D animated promo videos can be incredible but very expensive when done correctly. The production process requires far more planning because changes are highly labor-intensive and costly. Differences in quality between mid-level and premium 3D animation are drastic; avoid this approach unless you have $25,000 or more to spend on a video.
If you are interested in a 3D promo video, check out this article, we cover when it is appropriate to use 3D animation.
2D and 2.5D animation is optimal at this price point. Videos are relatively easy to produce (compared to 3D), look clean, and changes aren't labor intensive.
If you have over $25,000 to spend on a promo video, we recommend working with a local agency that has been around for over seven years. You must still vet the studio based on our pricing factors to ensure your budget is used effectively.
Two choices that stood out in our research prices include:
- Sandwich Video
- Buck Design
These agencies provide high quality at reasonable prices, considering their reputations, clients, and portfolios.
We provide two case studies below to give you an idea of what you can expect from an offshore agency within the $4,000-$15,000 price range. Each client was working with a budget under $6,000.
When we worked with Solana, they were still an emerging start-up. They contacted us to promote their revolutionary idea, "Proof of History." The promo video successfully explains how users can benefit from Solana's blockchain platform. Today, the company has grown to be a leader in the space and is valued at over a billion dollars.
Another of our clients, Varpet, an app that connects users directly with manual laborers, experienced incredible growth after hiring us to produce their promo video. The video above lead to a 200% increase in conversion rate on the company's website and 15,000 app registrations within just one month. As a result, the start-up reached its fundraising goals and reinvested in the business.
Navigating the promo video landscaping is no easy task. Unfortunately, there isn't a one-size-fits-all approach; you must consider your specific budget, goals, and product to find a production studio that will deliver optimal results.
If you are overwhelmed when looking for a promo video agency or don't know where to start, reach out for a free consultation.
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