What is the Cost of Corporate Video Production? We created the video below to explain the three things every corporate executive needs to know about the cost of video production as a companion to this post. First of all we think you need to consider what is the cost of not creating video for your business. Currently, 25% of businesses and brands use video in their communication and messaging. Additionally, recent surveys show that 65% of businesses are planning on adding video to their on=line strategy. Finally, Agencies are increasing their on-line spending on video 25% in 2015 (taking 25% away from Television). If you what to learn more about these trends see our info-graphic here.
Specifically, answering the question of cost is easy. On average corporate video production costs $500 to $1000 per finished minute, depending on complexity and production value. We have created corporate videos for sales and marketing with high production value from $5000 to $22,000 depending on length and extras (casting, locations, helicopter shots, drones, etc). However, there are many things you can do to make this very valuable to your business. Here are a couple of things we do at AMP Film studios for our corporate clients:
1) 50% of the cost of production is associated with the actual production cost, labor time and equipment. A good producer will schedule this time to create many videos rather then only one or two. Most of our corporate packages are very affordable and our clients end up with 35 – 40 minutes of finished product.
2) The messaging (story) is uniquely important and the cost of video production is negligible, since the videos will increase your conversions by 100%. Recent client billed $3000 per customer, was only closing 25% of their leads, released AMP Film Studios videos (based on our proven formula) and increased conversions to 50%, which translated into an additional $30,000 per month in sales. Video has a shelf life of three to five years so – As long as the business is at an average profit margin of 25% ($7500 additional profit) and the video was less than $15,000 then in two months they broke even – and for the next three years they made an extra $7500 per month. Would you pay $15,000 to make an extra $7500 per month for three years? Duh!
3) Thinking about costs is even easier than all of this – we regularly ask clients if they have a budget and they hesitate – however here is the basic formula used in the world –
Multiply Annual Sales by 10 – 15% (average higher for some businesses) than multiply that number by 25% – that is your annual budget for video annually. Example: $1,000,000 annual sales = $150,000 annual marketing/advertising budget = $37,500 per year on video. Additionally, Advertising agencies use the formula of 10% of their annual advertising spend. FOr example they spend $300,000 per year advertising on the internet and use $30,000 of that budget for video.
4) Our IEE&0 (interrupt, engage, educate and offer) strategy includes the use of DVDs as a giveaway which cost approximately $1.50 per inquiry after production and increases direct mail by 100%, increases referrals by 200% and increases leads by 300%. This amortizes the cost of corporate video production.
5) Finally, the cost of video production is similar to going into surgery – it takes a few professional people to perform this task who are highly skilled – yes you can do the surgery without anesthesia and save $1200 – but why would you? You can have the surgery in an office instead of a surgical suite and save $2500, but why would you? You can have a student surgeon, instead of a professional and save $4000, but why would you?
If you are like us you want to capitalize on your markets and grab a huge share of the business. It is for this reason that video is probably the best tool for corporations to use in marketing, sales and communications. It saves times, saves money and is the least expensive way to get information out to your prospects and the public than any other medium. At AMP Film Studios we are so confident in our expertise in the area of corporate video production that we are the only company we know of that offers a 100% money back video production guarantee. No one has ever asked for their money back at AMP Film Studios, because every customer has been 100% satisfied.
“After using the program and production for over a year we are more excited then we were in the beginning. The cost of production was worth every penny, and was nothing compared to what we would have had to spend in advertising and marketing to duplicate the same results. And we underestimated the power it had on our staff, vendors and community”
NicK Galantino, LMG Medical
Consistently we have used the techniques and philosophies described above to create affordable successful videos for our corporate clients in North America. So why create professional video? I am glad you asked. We created the guide: “Why Use Video for Corporate Communications, Sales & Marketing,” to explain the benefits of using video today. You can get your free guide by using the form provided to the right.
If you are convinced that video is the way to effectively communicate your corporate identity and messages, but not sure where to begin you can download out guide to create corporate video production here
If you still have questions about the cost of video production for your corporate please take a moment to call us at 1-877-267-4111, our producers are standing by 9 am to 9 pm EST to answer your questions. Thanks for reading (enjoy every moment).