Let’s imagine that you are currently accepting proposals from various video production companies on two different video projects. Each video is to last ninety seconds. Let’s suppose that Video #1 is a promotional video for a yearly two-day conference and seminar that your company sponsors. And let’s suppose that Video #2 is a promotional video for a specific product or service that your company offers. Sounds pretty straight-forward. Each video will last only ninety seconds. Each video will highlight your company. Each video will be used on your website.
So why is it that the budget estimate for Video #2 is five times greater than the budget estimate for Video #1? Since each video lasts the same amount of time, they should cost the same amount of money, right? Actually, the final running time of a video has very little impact on the budget.* To find out why Video #2 will cost more to produce than Video #1, you have to look at what’s involved in each project. Let’s suppose that in the case of Video #1 (the promotional video for the two-day annual conference) you already have all of the footage from last year’s conference. You simply want to re-purpose that footage into a video that promotes next year’s conference. So, all you need from the video production company is post-production services. You will even provide a script from which to structure the video.
In the case of Video #2, let’s assume that everything will have to be created from scratch. You need the video producer and/or director to come in, meet with you and your team, see the product or service, develop a concept, write a script, and provide all production and post-production services, which includes a two-day shoot on location with a full camera crew.
In these brief descriptions of each project, it’s apparent that Video #2 is a much more involved project than Video #1. Therefore, the budgets for each will be different, although the final running time for each video is the same. Think of it this way: most television commercials last thirty seconds. But, would you say that the commercial for your local furniture store cost the same amount of money as the commercial for Coca-Cola that aired during the Super Bowl? Each spot may last thirty seconds, but each one will have vastly different budgets.
*We’ve discussed the topic of budgeting before on this blog; how one video’s budget is not like the others, how to get the most accurate bid from a video production company, how to go through the budgeting process with your video production company, and several others. You can type the word “budget” to search our archives for articles pertaining to budgeting.