How Much Does a Video Ad Cost?
Video advertising has become an essential part of B2B & B2C marketing. It allows businesses to communicate their brand messages and promote their products or services in a visually engaging and interactive way. But one of the most common questions that marketers ask is, "How much does a video ad cost?".
The truth is, there is no one-size-fits-all answer to this question. The cost of a video ad can vary depending on a number of factors, such as the length of the video, the quality of production, the platform on which it will be displayed, and the complexity of the message you want to convey.
In this blog post, we will take a closer look at these factors to help you better understand how much a video ad may cost and what you can do to make the most of your budget.
Length of the Video
The length of the video is a significant factor in determining the cost of a video ad. Longer videos require more production time, more resources, and more editing, which can significantly increase the cost of the video. Typically, most video ads run between 15 and 60 seconds. However, longer videos may be necessary for certain types of content, such as brand stories, client testimonials, or explainer videos, just to name a few.
I can’t tell you how many times I‘ve been asked over the years, “How much would it cost to produce a 30-second video?” If you keep reading, you’ll see why that singular question is impossible to answer.
Quality of Production
The quality of production is another crucial factor that can influence the cost of a video ad. A high-quality video requires more time, expensive equipment, and a larger crew of skilled professionals, all of which will drive up the cost. High-quality videos can be produced in-house or by an external production company (hey, that’s us).
An in-house production may be less expensive, but it may not provide the same level of quality as an external production company. In our experience, in-house production teams are usually bogged down with more of the day-to-day types of video content meant for internal use, whereas an external video production agency has greater resources and a fresh perspective on the business, its goals, and messaging. They can often move much quicker as well since they are focused only on the video campaign and not the in-house daily tasks, as previously mentioned.
Platform(s) on Which It Will Be Displayed
The platform on which the video will be displayed is another factor that can impact the cost of a video ad. Different platforms have different requirements for video ads, and these requirements can impact the cost. For example, a video ad for social media platforms such as Facebook, Instagram, or Twitter may require different specifications than a video ad for television. Additionally, platforms will charge different fees for hosting and displaying video ads measured in clicks, audience reach, or CPM.
Check out our Introduction to B2B CTV Advertising.
Complexity of the Message
The complexity of the message you want to convey in your video ad can also impact the cost. A simple message that requires little to no visual or special effects, animations, or hired talent may be less expensive than a video that requires more conceptualization, complex editing, visual effects, and expensive actors. If you want to convey a complex message, you may need to invest more time and resources into the creative and production of the video.
How to Make the Most of Your Video Ad Budget
Now that you have a better understanding of some of the main factors that will impact the cost of a video ad, let's look at some tips to help you make the most of your video ad budget:
Set a Budget
Before you start production, it's essential to set a budget for your video ad. Your production team or video agency will be instrumental in helping you to determine this cost, so invite them into the process as early as possible. Decide on how much you're willing to spend and allocate your resources accordingly.
Be Strategic
When it comes to video production, it's essential to be strategic. Consider your target audience, message, and platform before you begin production. This will help you create a more effective video ad that resonates with your audience. When distributing your ad you may need different lengths or dimensions based on the platforms you decide to use. It’s also a good idea to A/B test your ads or different versions to see what works best for conversions. This is critical to address during the creative process and pre-production.
Prioritize Quality
While it may be tempting to cut corners and save costs, it's essential to prioritize quality when it comes to video production. A high-quality video with excellent creative will leave a lasting impression on your audience and increase the effectiveness of your ad. While a large budget can provide a great looking ad, it’s not always necessary to spend as much as possible.
Test and Optimize
Once your video ad is complete, it's essential to test and optimize it to ensure maximum effectiveness. Use analytics to track engagement, clicks, and other metrics to determine how well your video is performing. This can help you make adjustments to improve the effectiveness of your video ad. Again, A/B testing with different ad lengths, calls-to-action, and more are important and need to be planned prior to the actual production.
As you can see, the cost of a video ad can vary depending on a variety of factors. While it's important to consider these factors, it's equally important to remember that the effectiveness of your video ad is ultimately what matters most. By prioritizing quality, being strategic, and testing and optimizing your video ad, you can create a successful video advertising campaign that resonates with your target audience and achieves your marketing goals.
As always, we’re here to help, so don’t hesitate to reach out to our team.
