How to Determine Marketing Video Production Costs

How to determine marketing video production costs

So, you are thinking of hiring a video production company to produce a professional video for you and you were wondering, “What does it cost to produce a video?” You may discover wildly fluctuating prices ranging from under $1,000 to over $25,000 and wonder why there is such a wide swing in cost. Price range depends upon a number of factors.

Primary Factors Influencing Cost of a Marketing Video Production

Reviewing these points can help you determine your video budget and answer the question “How much does it cost to make a video?”

What is the degree of producing required? Will you be calling all the shots or did you need some creative development and someone to oversee the project from beginning to end?

  • Are there any script writing or script editing services you need?
  • What is the estimated length of the marketing video?
  • Is it a live action video shot on a camera, an animated video or a combination of both?
  • Is this just a video shoot as is with no editing, or will editing and titles be required?
  • Will this be a single camera shoot or multi-camera shoot?
  • What type of camera and format of video will be used?
  • How many shots or setups do you need?
  • Are there any specialty shots required like time-lapse or drone videography?
  • Beyond basic lighting and camera movement, are there any special lighting and grip needs?
  • What is the size of the crew? Did you just need a one-man-band or did you need a highly produced marketing video?
  • What are the number of shots planned? What is the degree of complexity of the shoot?
  • How many shooting days are needed?
  • How many locations are there?
  • Are there any location fees or prop needs?
  • Are there studio or green screen stage requirements?
  • What are the lighting or grip requirements? Is it a day or night shoot, an interior or exterior?
  • Are you planning on any voice-over talent or on-screen talent?  If so, what are the talent fees?
  • Will a teleprompter be needed?
  • Are there makeup or wardrobe requirements?
  • Are there stock video needs or licensing fees required?
  • Will there be any motion graphics, animation or visual effects?
  • Will there be music or other post-production audio requirements?
  • How may reviews of the edit did you want?
  • How will the final video be delivered? What is the video compression requirement?

 

How Your Budget Breaks Down

To help you visualize where your investment goes, here’s a typical budget allocation for a professional marketing video:

  • Pre-production (20–25%)
    This stage covers all the groundwork: planning, scriptwriting, storyboarding, location scouting, and casting. It lays the foundation for everything that follows and can be as simple or as involved as your concept demands.

  • Production (40–50%)
    The heart of your project. This is where the actual filming happens—including equipment, crew, talent, and any location fees. The complexity of your shoot, the number of days, and the technical requirements all play a significant role here.

  • Post-production (30–35%)
    This is the polish. Editing, sound design, motion graphics, color grading, and preparing the final deliverables all fall into this phase. The amount of post-production work depends on the style and requirements of your video—whether you need basic edits or high-end visual effects.

Keeping these factors and budget allocations in mind will help you shape a realistic plan for your marketing video—and avoid surprises down the line.

 

Questions to Ask About Cost Structures and Additional Fees

Clarifying costs upfront with your potential video production partner is essential to avoid unexpected surprises down the line. Here are some smart questions you’ll want to ask before you sign any contract:

How is your fee structured—do you charge by the hour, by the day, or for the entire project?

What’s included in your quoted price? (Ask specifically about pre-production, production, and post-production services.)

How do you handle revisions? Are a certain number included in the original quote, or will extra changes incur additional charges? What is your payment schedule—do you require a deposit, milestone payments, or payment upon completion? Are there any possible extra charges not reflected in your initial estimate, such as travel expenses, overtime, or special equipment rentals? How are costs handled for unexpected delays, reshoots, or changes to the original brief? If our shoot runs longer than planned, what is the process—and price—for extending the schedule? For third-party services (like stock footage, licensed music, or specialized animation), do you bill at cost, or do you add a markup? Having clear answers on these fronts will help you plan your budget accurately and ensure there are no surprises as your project moves forward.

 

Budget Guidelines for Every Business Size

Of course, once you’ve mapped out the essentials of your project, the next logical step is sorting out your budget. The right investment depends largely on the scale of your business and the goals you’ve set for your marketing video. Here’s how you might approach it:

Small Businesses:
For many small businesses, budgets tend to fall between $1,000 and $5,000 per video. It makes sense to zero in on producing a handful of high-impact videos—think explainer videos or product demos—rather than stretching resources thin with a larger volume of less-polished content. Enhancing video with simple upgrades—better lighting, an external microphone, and professional editing—can go a long way. And don’t forget: content created in this range can often be reused or clipped for different marketing channels to boost your overall value.

Mid-Size Companies:
Mid-size organizations can typically allocate between $5,000 and $20,000 per video. At this level, it pays to establish a strong visual identity that’s consistent across all projects. You might opt for a combination of polished brand videos—using professional crews and equipment for product launches or testimonials—while still producing more nimble, cost-effective pieces for social media or internal communications. The key is to balance standout assets for brand moments with a steady cadence of supporting video content.

Enterprise Organizations:
If you’re operating at an enterprise scale, video project budgets often exceed $20,000. With more resources comes the ability to maintain consistency across multiple departments and to produce highly polished campaigns or broadcast-quality content. Many larger companies build in-house video teams or contract with agencies experienced in large-scale productions to handle everything from scripting to advanced animation. It’s also essential at this tier to measure the effectiveness of each campaign through robust analytics so your investment is transparently tied to tangible business outcomes.

Ultimately, regardless of your budget, the focus should always remain on crafting video that speaks clearly to your audience and drives your desired results. An enormous spend isn’t the point. Your best video is one that meets your specific goals—delivered on time and on budget.

 

Typical Video Production Costs for Retail & E-Commerce Marketing

Let’s break down common video types used by retail and e-commerce brands—along with what you can generally expect to pay for each. These ballpark figures reflect the range of production options, from DIY-friendly shoots to high-end, cinematic campaigns. Your unique needs and goals will drive the final price, but this can get you in the right neighborhood for budgeting.

Product Showcase Videos

If your aim is to put your product front and center—with crisp visuals, engaging demonstrations, and a clear presentation of features—this is the category for you.

  • Entry Level ($1,000–$3,000): Think basic camera and lighting work, no frills. You’ll see short runtimes (usually up to a minute), and a simple single-location shoot.
  • Mid-Range ($3,000–$7,000): More polish comes in with multiple camera angles, custom backgrounds, and possible use of models or product specialists to demonstrate.
  • Premium Productions ($7,000–$10,000+): High-gloss, cinematic quality, advanced effects, well-dressed sets, and even custom music. If you want your product to look like it belongs in a Super Bowl ad, this is your tier.

Brand Story & Company Culture Videos

Telling your company’s “why”—that is, your mission, team, and story—calls for a different approach.

  • Basic ($5,000–$10,000): Interviews with founders or staff and simple footage in your workplace, all cut together for a tight, two- to three-minute intro.
  • Intermediate ($10,000–$18,000): Multiple locations, professional on-site shooting, motion graphics, and more robust storytelling, often including voiceover.
  • Top Tier ($18,000–$20,000+): Everything above, plus advanced graphics, multiple shoot days, and a sweeping arc that can cover a company’s journey.

Customer Testimonial Videos

Showcasing real users can be as simple or sophisticated as your budget allows.

  • Simple Stories ($2,000–$5,000): Basic interviews in a single location, maybe a bit of overlay footage (b-roll) for context.
  • Enhanced ($5,000–$10,000): Several customer stories, more in-depth edits, tailored graphics, or step-by-step product demos woven in.
  • Narrative-Driven ($10,000–$15,000+): Multiple locations, documentary feel, directed talent, and a more fleshed-out customer journey.

Educational & How-To Videos

These explainers let you show off the versatility and utility of your products.

  • No-Frills ($1,500–$3,000): Single-camera setups, quick demonstrations, straightforward delivery.
  • Mid-Level ($3,000–$5,000): Professional hosts, more dynamic visuals, graphics or text overlays, and detailed step-throughs.
  • Top of the Class ($5,000–$8,000+): Advanced animation, multiple use cases, script-driven instruction, and a polished final product.

Social Media & Short-Form Content

Quick hits for Instagram, TikTok, or YouTube are all about bite-sized storytelling and visual flair.

  • Baseline ($500–$1,500): Single shots, one location, super-short duration (under 30 seconds).
  • Standard ($1,500–$3,000): Mixing up the visuals, using graphics, or jumping on trending formats.
  • Premium Social ($3,000–$5,000+): High-end editing, motion graphics, working with influencers, and shooting across assorted locations.

 

Keep in mind, shooting several videos in one day or reusing footage across different formats can stretch your budget even further. Not all projects need to reach for the highest tier—sometimes, a well-executed, straightforward shoot does the job beautifully.

Producer-Director-Bill-Knowland
Bill Knowland, Producer

Video producers are used to working on a wide range of projects at varying prices. They can help you with planning and budgeting for your marketing video and help you determine the best production value for your project.

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