Drew Cookenmaster
Mar 17, 2023
Part of the "Planning For Advertising" Series
Understanding the Cost of Video Ads: A Comprehensive Breakdown
Creating an effective video ad involves several stages, each with its own associated costs. From the initial shooting to editing and distribution, understanding these expenses can help businesses budget appropriately and maximize their return on investment. In this blog, we will break down the costs involved in video ad production and explore various distribution options, including social media, connected TV (CTV), and traditional broadcast.
1. Costs of Shooting Video Ads
The shooting phase is where the creative vision comes to life. The costs can vary significantly based on several factors:
Location and Set Design
On-location shoots: Costs can include permits, travel expenses, and location fees.
Studio rentals: Typically range from $500 to $5,000 per day depending on the facility and equipment available.
Talent Fees
Actors and Voiceover Artists: Depending on experience and demand, fees can range from $100 to $5,000 per day.
Extras: Hiring additional talent for crowd scenes or specific roles can add to the budget.
Equipment Rental
Cameras and Lighting: High-quality equipment can cost anywhere from $500 to $10,000 for a day’s rental.
Sound Equipment: Quality audio recording equipment can add another $200 to $1,500.
2. Editing Costs
Once shooting is complete, the editing process begins. This is where the raw footage is transformed into a polished final product.
Editing Software and Tools
Professional editing software licenses can cost anywhere from $20 to $300 per month. - Additional tools for color grading or special effects may incur extra costs.
Editor Fees
Freelance editors typically charge between $50 to $150 per hour, depending on their expertise and the complexity of the project.
Full-service video production companies may offer package deals that range from $1,000 to $10,000 for complete editing services.
3. Distribution Options and Their Costs
After editing, the next step is distribution. The choice of platform can significantly affect the cost and reach of the video ad.
Social Media Platforms
Facebook and Instagram Ads: Costs can vary; businesses typically spend between $0.50 to $3.00 per click or $5 to $30 per 1,000 views.
YouTube Ads: The cost can range from $0.10 to $0.30 per view, depending on targeting and competition.
Connected TV (CTV) Advertising
CTV advertising costs can range from $20 to $40 per 1,000 impressions, making it a cost-effective option for reaching a larger audience.
Platforms like Hulu and Roku may have different pricing structures based on audience targeting and ad placements.
Broadcast Television
Traditional broadcast advertising costs can vary widely based on the network, time slot, and audience reach. Local spots may cost anywhere from $200 to $1,500 per 30-second ad, while national spots can range from $5,000 to over $100,000.
4. Total Cost Estimation
When budgeting for a video ad, it’s essential to consider all the factors mentioned above. A rough estimate for a basic video ad can range from $5,000 to $50,000, depending on the complexity and quality desired.
Conclusion
Understanding the costs associated with video ads is crucial for any business looking to invest in this powerful marketing tool. By breaking down the expenses from shooting and editing to distribution, businesses can make informed decisions that align with their budgets and marketing goals Bespoke Marketing can help you execute your vision.
