This second post on what you should pay for video focuses on investment. Never make a video without considering what it can do for you and your business. If you missed Part 1 (focusing on setting your budget) you can see it here.

We encourage new clients to think of videos as an investment. I don’t know about you, but when I think of investments, I think of stocks and bonds and financial workings of the money market. You might think of that too, but video marketing as an investment is something completely different.

While the average yield for stocks is around 10% (unless you play the fast game like Gamestop) and bond yields are more like 5-7%, video nets a lot more for business.


A lot of video marketing is targeted for awareness. It’s either a new business, or a new product or service. Both of these examples have a lot to lose and a lot to gain. If it’s a new business, awareness might be the difference between surviving or not. If it’s a new product or service, it might mean the difference in breaking into a new market or losing money on that same new market.

The reason video works as an investment is because it’s the best way to connect with new audiences. Video beats every other medium of communication when it comes to views, reactions and conversions. It also is the best way to build connections that lead to that know/like/trust factor every brand wants.

Let’s say your company wants to launch a new product. If successful, the product should earn the company $500,000 in the first year. The product should continue earning for five years consecutively. That makes $3.5 million after six years.

In the first year, you’ll want to make as many of the right people aware of the product as soon as possible. Most marketing budgets start at 10% of the first year’s profit. That’s $50,000. If we stop right there and just ask, “Would you be willing to trade $50k for $500k?” it’s easy to see why this would be an investment, right?! But let’s flesh this out a bit more.

Let’s say you spend $20k for ad buy and $5k for copy and graphics. That still leaves you with $25k for video production costs. You would have to be incompetent to not understand this as an investment.

Instead of a 10% return or a 5-7% return, that’s a 900% return on investment. And that’s only for the first year.


Just because you have $25k to spend on a video doesn’t mean you should. Even if that would be a great investment. Your video budget should reflect how aggressively you want to connect with a new audience. It shouldn’t just be an earning statement against a new product. Why?

Because videos make connections. A video that works. One that connects with an audience does so much more than sell a product. It grows a brand. So the return on that one investment is really priceless.

Of course, this is only true if you think of video as a tool that has infinite ROI. Sure, you can make a video that doesn’t have a goal or a target or isn’t very well done, and you won’t see this kind of ROI. We don’t make those kinds of videos.


It’s not something that we can measure really. Like Mastercard’s brilliant marketing campaign, the return on a great video is priceless. It builds a brand in ways you’ll never know. You might as well ask what the value of brand loyalty is or a customer’s trust.

What we know is, every connection you make with video is one that continues to give back to your company. That’s why we don’t just make videos. We make connections.

Want to talk more? Hit us up.


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