You may not be aiming to produce blockbuster videos, but it will still cost you money to get that corporate audiovisual content created and get it out there. According to a Gartner Research Study, most companies spend about 12% of their annual revenue on marketing. With the rise in popularity of videos, many companies are increasing their investment in this channel of marketing.
Sticking to a Limited Video Production Budget
There’s a lot of hype around film making. Companies can blow their marketing budgets on videos. However, they don’t make the expected return on their investment. Large film making crews and budgets don’t always translate into large returns.
If you want to get the best out of audio visual content creation while working on a limited financial plan, consider applying the following tips.
- Know your expenses
Do you already know what the objective and message is? If you have the script or narrative and a vision of what it will be like, you can begin to break down your expenses. This will help you determine just how much you will need to spend in total. You will need to determine the size of the cast, the equipment required, the professionals you will need to hire and other factors.
- Make lists
It’s not enough to know what they are. You also need to know what category they fall under. Video production often involves costs that can be grouped into 4 categories. These are:
- Above the line costs- these include expenditures related to personnel who will guide and influence the creative process such as a Producer, Script Writer, Director and Actors.
- Below the line costs – these include expenditures related to the personnel you will hire to execute the creation phase e.g. Cinematographer, camera crew, lighting crew, editor etc.
- Post Production house overheads – these overheads will be experienced after the filming is complete.
- Non-personnel costs – these expenditures are not directly related to personnel. They include anything from paying for locations, catering, vehicles, and studio time.
Having lists and a budget breakdown ensures that nothing is left out. It also ensures that you have a clear picture of your expenses, how much will be needed, and when.
- Calculate contingency and tax
One of the most common mistakes businesses make when considering their costs is not catering for contingencies. We advise our clients to include a contingency in their budgets that is not less than 10% of the total budget. This will cater for any unexpected expenses.
You should also include your taxes in the calculation of your costs. Your cost estimate should cover the taxes on the project to ensure that you don’t have any surprises down the line.
- Understand your post production overheads
Many clients don’t include the post creation in their budget. However, this is where all the magic happens. It involves video and audio editing time, which may cost a lot of money. It also involves animation, title design, original music scores, adding special effects, colour correction and other post production work. This involves different professionals for the best results. This can also be expensive. Ensure that you cater for all these overheads in your budget.
Easy Video Production Route
If you’re feeling dizzy from all the expenses you have to cater for you will be relieved to know that there is an easier way to deal with film making with limited resources. Hire a production company to avoid having to deal with every single detail.