A Guide To Navigating The Cost of Video Production

Posted by on Feb 7, 2018 in Marketing | No Comments

Almost every time we engage a new client the first question that is asked is, ‘how much does it cost?’

However, at Amber Pacific Studios, we feel the first question should be: What is the return on investment I want from this video?

This is the most important question and the way you should think about all future projects.

ROI is key in business. What you put in should generate profits several times your original cost. What is the return you want on your investment in making the film?

For instance if you are filming an event:

  • Is it to use as a marketing tool to attract more people to next year’s event?
  • Is it to enhance your reputation?
  • Is it to generate more customers?
  • Is it to book tours or promote excursions?
  • Is it to fill staterooms?
  • Is it to reassure your staff, making them feel valued and ensuring your retain your best people?

The cost of making a video can be seen as high compared to other print based marketing activities, but that’s because there are more processes and people involved. However, the return for video can be significantly higher.

Industry Case Study:

P&O Cruises increased their bookings by 950% with video in email marketing in 2012. Video had a major impact on their business:

• 11.4 % uplift in unique open rates
• 3.1 % increase in click through rates
• 950% increase in bookings
• 679% boost in revenue

How does a 679% increase in revenue sound to you?

Our Case Study:

One of the main sectors we operate in is the cruise sector. For 10 years we’ve been creating inspirational content for clients with the goal is increasing bookings and revenue. In December of 2014 we filmed for 2 weeks onboard the Seabourn Quest on her expedition to Antarctica. Seabourn paid us $10,000 CAD to make this film.

  • A basic stateroom on this trip costs $19,984 CAD per person (they offer other suites up to $57,292 CAD/pp)
  • The video on their official YouTube channel currently has 357,214 views (not including any other social streams)
  • Additionally they informed me their sales reps have been utilizing it at trade shows and sales presentations around the world.
  • If a conservative 0.1% of targeted people who watched the video book after viewing, that translates to 357 people.
  • 357 people x $19,984 CAD = $7,134,288.00 in booking revenue.
  • The year following the release of this video their entire Antarctic season was booked up solid (we wanted to come back but they told us they had no room!).

Would spending $10k for a video seem like a good investment to you? 

Have a great week,

  • Chris

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