How Much to Spend on Video Production?

One of our most asked questions is “How much should we be spending on video marketing?” When it comes to investing in video, the easiest illustration to show is the bucket model. Let’s say your annual revenue for your company is 5 million dollars, represented by this big bucket. A healthy marketing budget is 10% of your revenue, represented by this smaller bucket, or $500,000. This will ensure you’re investing back into your company to keep it moving in the right direction. With the surge of digital marketing opportunities, it’s recommended to allocate more money into digital than print or outdoor marketing. So, with that 10%, over half ought to be in digital, represented by this cup, or $250,000. And finally, video production and video marketing fits in that little cup, represented by this shot glass, or $125,000. So, in other words, video production and video marketing ought to be approximately 2-3% of your annual revenue to be a thriving company in 2020. 

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