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Thoughts - November 10, 2023

The Art of Budgeting: How to Allocate Funds for Effective Video Marketing

Thoughts

Thoughts

Thoughts Thoughts

In today’s digital landscape, the power of video marketing is undeniable. From short-form social media clips to in-depth product demos, video content is a cornerstone of modern marketing strategies. As brands strive to capture the attention and loyalty of their target audience, budgeting for video production is not just an option — it’s a necessity. 

Effectively allocating funds ensures that your video marketing campaigns not only meet your objectives but also yield a beneficial return on investment. Without a well-structured budget, it’s easy to overspend, compromise quality, or miss out on valuable opportunities. 

Your partners at Studio Sage have years of experience not only creating budgets, but being built into budgets like yours! Keep reading for our simple, time-tested budgeting process to maximize your video marketing. 

Set Your Video Marketing Goals 

Before budgeting comes into play, think about the ideal outcomes. Your goals serve as the guiding stars that determine where your budget is best allocated. To set yourself up for success, make sure your objectives are specific, measurable, and in sync with your overall marketing and business strategy. Whether it’s increasing brand awareness, driving conversions, or expanding to new markets, your budget allocation should mirror your goals. 

Different goals come with different costs, and by tailoring your budget to the unique requirements of each objective, you can ensure that your funds are optimally utilized.   

Determine Available Resources 

Designating funds for effective video marketing goes hand in hand with understanding the resources at your disposal. Begin by taking a close look at your budget for video marketing. How much can you comfortably distribute to this area of your marketing strategy? Consider both the initial investment and the ongoing costs associated with video production, distribution and promotion. 

Assess the skills and equipment available within your business; do you have in-house video production experts, equipment, and software? Knowing your in-house capabilities can help you decide which aspects of video production can be handled internally, which could lead to cost savings! Most businesses don’t have in-house video production experts or equipment, so outsourced support is essential. This could involve hiring professional videographers, video editors, or agencies like Studio Sage with a track record of producing high-quality video content. With a comprehensive understanding of your available resources, you can make informed decisions when it comes to budget allocation — choosing the right mix of in-house and external support to achieve your video marketing objectives.  

Prioritize Video Projects

Not all video content is created equal, and some projects may have a more significant impact on your goals than others. Categorize your video projects based on their importance and alignment with your established goals; some videos may be directly tied to your primary objectives, while others might serve more supplementary purposes. Consider the potential return on investment for each video project. Videos with the highest potential to drive meaningful results should be bolstered in budget priorities. 

Successful budgeting should also reflect the balance between high-impact, potentially high-cost videos, and smaller productions that may be more cost-effective. Striking this balance ensures that you’re maximizing the value of your budget, not overspending on each project, and effectively reaching your goals. 

Account for Cost Factors 

To create your budget effectively, it’s crucial to understand the key cost factors involved in video production. 

Video production costs typically consist of pre-production, production, and post-production expenses. Pre-production covers aspects like scriptwriting, storyboarding, location scouting, and talent selection. The production phase includes shooting, equipment rental, and personnel costs, while post-production encompasses video editing, special effects, and sound design. 

Keep in mind that the added layer of video length, complexity and quality will also directly impact costs. Longer, more detailed or special effect videos may require a more substantial budget, that’s why it’s indispensable to align the scope of your video projects with your budgetary constraints. 

Create a Realistic Budget

With a clear picture of your goals, resources, priorities, and cost factors, it’s time to create a realistic budget. Start by aligning funds to each project based on its priority and potential ROI; high-impact projects should receive a larger share of the budget, while supplementary videos may have smaller allocations. 

Break down your budget to cover all aspects of video production, from scriptwriting, hiring talent, equipment and editing (plus, extra funds for promoting your videos). 

In any production process, unforeseen circumstances can arise. We recommend a contingency budget for unexpected expenses. 

Monitor and Adjust the Budget

Creating your budget is just the beginning. Regularly tracking your expenses against your budget is vital, because it allows you to identify any discrepancies, assess whether you’re overspending or underspending, and make informed decisions based on your financial data. 

As your campaigns progress, you might encounter unexpected opportunities or challenges. Stay open to adjustments that keep the project moving forward, whether it’s allocating more funds for further promotion, or conversely, scaling back a budget if the project isn’t delivering expected results. 

Budgeting for effective video marketing is a complex skill that takes time to master! However, by creating a realistic, multi-factor budget that aligns with your goals and resources, you’re primed to maximize the impact of your campaigns, leading to better results! 

About the author

Becca Zarchy

Associate Marketing Manager

As Associate Marketing Manager at EA Collective, Becca leads efforts to create and curate content across Agency EA, Storyhorse, and Studio Sage.