Online budgets are lower than television budgets
These are very different quantities than we are used to from television. Of course, if you spend 2 million euros on media, it is not at all crazy to spend a ton on production. Online, however, the budgets are much lower, more like €50-100k for an average promoted videos campaign . Logically, a lower production budget fits in with that. It is then up to the creativity of the makers to operate within those constraints.
Factors that influence the pricing of an online video include:
in-house versus outsourced;
scale;
ratio of shooting/editing;
required equipment;
crew size;
golden triangle: time, money & quality;
expectations & agreements.
Before we explore these factors, let's first look at online video as a trend at a macro level and how it differs from the traditional campaign approach.
Online video is hot
Online video is growing fast. Very fast. If the statistics are to be believed, 6 billion hours of video are watched on YouTube worldwide every month. According to the Cisco Visual Networking Index, 90% of private IP traffic in 2013 was video and 66% of all mobile data traffic in 2017 was video . Of course, this lumps everything together (including video calling, Uitzending Gemist and Netflix), but from your own experience and environment you know that you would rather watch a short video than india phone data read a whole block of text (with the exception of this one, lol). Where do you go when you're looking for a video? Exactly, YouTube.
Many marketing and communication budgets are set up and organised around campaign themes. Often the use of online video does not involve more than placing a television commercial or a single web video on YouTube. A characteristic is that the campaign stands alone and that after the evaluation there is little or no attention for it, because the department is already busy with the next campaign.
YouTube works across campaigns
That model works particularly well with the fleeting traditional mass media and certainly also has its merits in the online translation thereof: buying promoted video positions on YouTube, also known as Video SEM (Search Engine Marketing). However, your current videos can and will continue to be viewed for a long time, which means that the medium by definition works beyond campaigns. I spoke to creative director Mike Richters of FUSE Communication in Amsterdam.