HOW MUCH TO SPEND ON A VIDEO
How should I spend
The first question a company about to have a video made for them should ask is, how much should I spend. This is a question that must be decided with a marketing budget. Every business is different. The approach to what kind of video is needed, and how much to spend can be as various as there are types of businesses. Here at Enlightened Vision Entertainment we have a price list; however, it is more of a guide. We work with our clients to ensure the budget makes sense, and any video will have the most impact to draw potential clients.
It may not make sense for a small local pub to dedicate a million dollars for a video to promote a venue that can only hold 75 people. However small promotional videos of parties held there posted online could be used to attract more customers, and encourage returning ones. For a situation like that we would likely suggest a small fee to send out live videos, and set up links on the pub's website, Twitter, IG, and Facebook pages.
Inversely an inventor that wants to sell a new product might need an informercial to display what the new product is capable of along with testimonials that the product does the intended job. In this case the actual product would decide how much of a budget would be necessary. If a new type of towel was invented then perhaps the towel, and some props to use the towel on would be the majority of the budget. But if a new type of drone were invented then to display the drones capabilities might become quite an expensive project.
The marketing campaign, and the video should be tailored to the target audience. The first thing many business owners are likely to want to do is try to make a video that everyone will love. The fact is everyone is not going to love every product. The best way to make decisions is to find your target audience (the people you are selling to), and figure out your potential profit margin. Once the profit margin is determined how much money can go into the marketing budget can then be decided. It is important to remember that the video cannot be the entire marketing budget; because, the video still has to be promoted and promotion is not free. Finally what is the most creative way to attract your audience, and what is the most affordable way to make that creative idea come to life. With this formula plug in dollars and cents to actualize an actual video budget.