In a recent report by ReelSEO, 37% of marketers acknowledged that they refrained from committing to video because of cost. Other marketers were reserved about video in the face of technical issues, worries about not producing enough high-quality content, and lack of access to available assets. We try to educate our clients about the difference between perceived cost and actual costs.
Take Chipotle’s classic video marketing strategy, the story of The Scarecrow. The high-level animation, courtesy of Moonbot Studios, whimsically tuned to a Fiona Apple track, represents an investment of at least $250,000 (that’s our best guess). Whoa! But look at the coverage that video has received – articles in the LA Times , Forbes Magazine, Social Media Examiner, and the Huffington Post. And that’s not even mentioning the over 7 million views the video received on YouTube. And Chipotle’s similar Back to The Start campaign garnered over 8 million views and drove YouTube subscriber numbers into the tens of thousands.
Even more significantly, Chipotle has posted at least 10% yearly increases in earnings for the past 5 years, posting revenue earnings of $1.54 billion back in 2013.
While you might not have a quarter million dollar budget for your corporate video, the answer to the “What does it cost…” question is this…you can produce a video for any budget amount. What you are limiting though is some production value that might not drive as strong of an ROI. When done with proper planning, shooting and production, video can drive a 157% increase in organic visitors to your website.Brightcove. In addition, a videos can double the conversion rate on your website. Aberdeen
That is a strong ROI.
So what this teaches us is that dollar for dollar, video marketing drives consumer engagement and revenue streams. As a general rule, we recommend that your video marketing budget represent 2% of your yearly earnings.