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Published: January 2, 2025

How Much Does Digital Advertising Video Production Cost In 2025?

On average, online ad videos pricing can range from $900 and $4,000, with starting estimates as low as $1,100. We've found that many popular video styles like explainer videos, 2d animation videos, and product demo videos, fall within these costs; however, product demo videos often have a tighter average cost range of $2,000 and $3,000 and a quicker 2 to 4 week project timeline.
Digital Advertising Video
methodology:
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Digital Advertising Video Pricing

  • Advids Expertise
    • 40+ award-winning creatives specializing in online ad video creation.
    • Full-service video production expertise for impactful explainer and 2d animation videos.
    • Custom product demo videos designed to boost engagement and conversions.
  • What Sets Advids Apart

    Our video ad specialists help boost conversions with compelling video ads. We use proven strategies and cutting-edge creative expertise.

    • Craft compelling narratives and visuals.
    • We develop scripts that resonate with your target audience and create visually stunning ads that capture attention.
    • Develop persuasive calls-to-action.
    • We design effective calls-to-action that drive conversions and achieve your marketing goals.
    • Optimize video assets for platforms.
    • We ensure your videos are optimized for various platforms, maximizing their reach and impact.
    • Master motion graphics and animation.
    • We leverage motion graphics and animation to create engaging and memorable video ads.

 

Join the 3,400+
trusting Advids to elevate your brand with compelling digital advertising video. Many providers rely on generic templates. That’s not how we create at Advids. We craft custom videos.

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Key Takeaways

  • 83% of businesses are happy with the return on investment (ROI) they receive from videos.
  • 37% of businesses use a data-driven strategy for their videos.
  • 62% of businesses plan to increase spending on digital communication videos in 2025.
  • 18% of businesses are willing to experiment with new video formats
  • 49% of businesses say they're currently using, or are open to using, a video production agency for their video production.

Factors

What factors influence the cost of digital advertising video creation?

Understanding the factors that influence video production costs is crucial for effective budgeting. Let's break down the key elements that can affect your digital advertising video's final price tag.

Primary Factors:

1. Video Length: A longer digital advertising video requires more production time and resources, directly impacting the cost. For example, a 90-second video will typically be more expensive than a 60-second video.
2. Video Design Complexity: Intricate animations, detailed character designs, or complex visual effects in your digital advertising video add to the production workload and, consequently, the cost. Think about the level of detail needed to effectively convey your message.
3. Video Production Scope: Extensive pre-production for your digital advertising video, such as in-depth market research, multiple script revisions, or complex storyboarding, can increase the overall project cost. Planning is key to staying on budget.


Secondary Factors:

4. Voice-over Talent Selection & Direction: A professional voice-over artist with experience in digital advertising videos can elevate your production but also adds to the cost. Consider your target audience and choose a voice that resonates.
5. Music Licensing Fees: Using high-quality, licensed music in your digital advertising video ensures you avoid copyright issues but can add to your budget. Royalty-free music can be a cost-effective alternative.
6. Number of Revisions: Multiple rounds of revisions to your digital advertising video script, animation, or other elements can extend the production timeline and increase the cost. Clear communication upfront can minimize the need for extensive revisions.

How to optimize digital advertising video creation budget?

Managing your digital advertising video budget requires a strategic approach. These 6 factors can impact the cost by as much as 40%. A well-defined budget ensures your video is engaging and effective without overspending. Ready to start? Engage a video production agency early on; they can tailor a quote to your specific needs. Remember, 37% of businesses already use data-driven creative for their video ads – be part of the trend.

Our simple budgeting guidelines are:

Define Your Must-Haves: What core elements are essential for your digital advertising video's success?
Collaborate Early: Work closely with your chosen agency to align your vision and budget.
Explore Options: Discuss alternative approaches that can save money without compromising quality.

How to get exact budget for your digital advertising video production?

Getting an accurate budget for your digital advertising video production requires proactive communication and a clear understanding of your needs. Start by defining your objectives and gathering inspiration. What message do you want to convey?

Provide your chosen agency with 1-2 reference videos and a detailed brief outlining your goals for the digital advertising video. This will help them understand your vision and provide a tailored quote. Request a detailed scope of work outlining milestones, payment terms, revision flexibility, and potential for future video updates. Inquire about any premium extras included in the package and what creative input they expect from you. This can affect the cost. Discuss potential discounts for long-term partnerships or bulk projects. Don't hesitate to negotiate – pitching yourself and your project clearly can save money. Finally, ask about their experience with similar digital advertising video projects. 49% of businesses are open to using a video production agency – leverage their expertise.

Here's a checklist to guide your conversation:

Share Inspiration: Provide reference videos and a clear brief.
Scope of Work: Request a detailed outline of the project.
Premium Extras: Inquire about any additional services offered.
Client Input: Understand your role in the creative process.
Discounts & Partnerships: Explore options for long-term collaboration.
Negotiate: Don't be afraid to ask for a special price.
Experience: Confirm their expertise in digital advertising video production.

Overall average cost of digital advertising video

The average cost of a 60-second digital advertising video is $3,240, with prices ranging from $1,000 to $16,000.

  • Key factors affecting the cost include production quality, customization, and the provider's geographic location.
  • We identified a 'sweet spot' between $3,500 and $8,300, balancing quality, customization, and value.
  • Geographical spending on video advertising production -

  • US-based companies spend average of $6,690 for 60 seconds
  • European companies spend average of $4,320 for 60 seconds
  • Asian companies spend average of $1,950 for 60 seconds
  • Companies types and their video marketing production budgets -

  • For startups and SMB businesses, a budget of $1,200 to $3,500 is recommended for an optimal balance of affordability and quality.
  • Founders of early stage companies, achieve the most rich content for better investment ROI, a budget of $1,650 to $4,250 is average spend per minute.
  • Enterprise companies spend a higher price for rich aesthetics and branding, an average of $4,700 to $8,300 for top quality videos.
  • With remote work and advanced software paired with modern ai powered graphics software, agencies are able to deliver the same quality in 2025 at a lower budget of 15% compared to previous year. Returning clients expect to get the same quality of digital advertising videos at a discounted price of 28% to 34% on average.

    Data source - Advids surveyed in 2025 , 80 of its clients and 12 agencies to calculate the average cost & spending.

    Digital Advertising Video Pricing List

    Choosing the right video style for your digital advertising campaign is crucial for effectively reaching your target audience. We'll break down popular video ad styles, including their ideal length, use cases, common elements, production timeline, and estimated cost, to help you make informed decisions.

    Below is average per minute pricing

    1. Kinetic Typography Pricing: $900 - $1,500
    Use Cases: Product launch, Event promotion, Brand awareness, Flash sale, Motivational quote
    Ideal Length: 6 seconds, 15 seconds
    Video Elements: Moving text, Dynamic fonts, Background music
    Production Timeline: 1-2 weeks

    2. Whiteboard Animation Pricing: $1,200 - $2,200
    Use Cases: Onboarding, Feature highlight, Problem/solution, Educational content, Process explanation
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Hand-drawn animation, Simple characters, Text overlays, Icons
    Production Timeline: 2-3 weeks

    3. UI Mockup Animation Pricing: $1,500 - $2,500
    Use Cases: App demo, Software tutorial, Website preview, User flow, Feature walkthrough
    Ideal Length: 30 seconds
    Video Elements: Screen recording, Animated UI elements, Transitions, Text annotations
    Production Timeline: 2-3 weeks

    4. 2D Animated Explainer Pricing: $2,000 - $3,500
    Use Cases: Product demo, Brand storytelling, Service explanation, Educational videos, Complex concepts
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Character animation, Backgrounds, Props, Visual effects
    Production Timeline: 3-4 weeks

    5. Motion Graphics Demo Pricing: $2,500 - $4,000
    Use Cases: Product features, Data visualization, Abstract concepts, Brand identity, Logo animation
    Ideal Length: 15 seconds, 30 seconds
    Video Elements: Shapes, Animations, Transitions, Text, Effects
    Production Timeline: 3-4 weeks

    6. Live Action + Software Pricing: $2,800 - $4,000
    Use Cases: Product demo, Testimonial, Behind the scenes, Event coverage, Office tour
    Ideal Length: 30 seconds, 2 minutes
    Video Elements: Live footage, Screen recordings, Animated overlays, Text, Transitions
    Production Timeline: 4-5 weeks

    7. Animated Explainer Pricing: $3,500 - $4,000
    Use Cases: Complex product demo, Detailed storytelling, Intricate animation, Character-driven narratives, Emotional connection
    Ideal Length: 60 seconds, 2 minutes
    Video Elements: Detailed character animation, Backgrounds, Special effects, Sound design
    Production Timeline: 6-8 weeks

    How much does digital advertising video production cost?

    Have you considered the video's impact on your ROI? We've found that digital advertising video production costs vary significantly, ranging from $900 to $4,000 for a 60-second video. In our experience, this broad range reflects the diverse styles available, from simple motion graphics to complex live-action productions. A key factor influencing cost is the level of customization; a truly bespoke video will naturally command a higher price. Remember, a higher-quality video often translates to a better return on investment. This is because higher quality videos are more engaging and effective. We typically include scriptwriting, voiceover, music licensing, and revisions in our pricing. Many production companies offer tiered packages – basic, standard, and premium – to simplify the process. 83% of businesses see a positive ROI from video ads, so it's a worthwhile investment. A helpful tip: prioritize essential elements to balance quality and affordability. Choosing the right format based on your message and budget is crucial.

    How does digital advertising video creation pricing work?

    comparing quotes requires careful analysis. Look beyond the headline number; compare apples to apples. Consider the quality of the proposed video, the experience of the production team, and the included services. A cheaper quote might mean lower production values or less experienced personnel. For example, comparing a 2D animated explainer video quote from one agency to another requires examining the detail in the animation, the quality of the voiceover, and the overall polish of the final product. One key thing often overlooked is the level of client involvement expected. A highly collaborative process might add to the cost. Approach pricing by first defining your video goals and target audience. Then, align your budget with the production style that best suits your needs and message.

    Data roundup
    Do you plan to increase or decrease video content budget?

    What is the average pricing range for custom digital advertising video creation?

    When considering truly custom video production, live-action productions often represent the highest level of effort. These videos demand extensive pre-production planning, location scouting, talent acquisition, filming, and post-production work. Live-action is ideal when you need to showcase real people, products, or environments to build trust and authenticity. We've seen custom live-action video projects range from $3,500 to $5,000 for a 60-second spot. This higher price point reflects the extensive resources and expertise required to deliver a high-quality, impactful video. The investment is justified when your message demands a realistic and engaging portrayal.

    What is the estimated cost range for a 60 seconds digital advertising video?

    The average cost for a 60-second digital advertising video falls between $900 and $4,000. However, you can maximize your ROI by negotiating strategically. Don't just focus on the initial price; inquire about additional value, such as multiple versions with different calls to action or aspect ratios. A 60-second video allows for a more comprehensive message, but you can use this time to your advantage by creating multiple versions targeted at different user personas. This approach can significantly improve your results. Consider requesting raw files to allow for future edits and repurposing. By focusing on these strategies, you can get more value for your investment and achieve better results. Remember, the goal is not just to create a video, but to create a video that delivers results.

    Data roundup
    Are you happy with the quality vs cost of your current video creation agency?

    How much does it cost to hire a professional Digital Advertising Video production agency?

    Finding the right agency at the right price—that's a common question, isn't it? We understand the pressure of balancing quality with budget. In our experience, professional agencies typically range from $2,500 to $4,500 for a minute-long digital advertising video. Before committing, we strongly recommend thoroughly reviewing agency portfolios and Google reviews. Look for client testimonials that highlight communication, responsiveness, and the overall quality of their work. Don't just focus on the headline price; request detailed proposals from several agencies, ensuring they're all quoting for the exact same specifications. This allows for a fair comparison. Create a shortlist based on cost, production quality, and your gut feeling about their creative vision and communication style. Consider the potential for a long-term partnership; a strong agency can become a valuable ongoing content solution.

    How much does freelancers cost to create Digital Advertising Videos?

    Hiring a freelancer can seem appealing, especially considering the cost. However, we've found that while freelancers can be reliable—particularly those with proven experience—managing a project with a solo individual often presents challenges. They may lack the research and pre-production capabilities of a full agency. Also, project management can be more complex. While freelancers can be 30% to 70% cheaper than agencies, resulting in a price range of roughly $700 to $1,200 for a minute-long video (compared to the agency range of $2,500 to $4,500), their hourly rates—typically between $15 and $25—can quickly add up. It's crucial to weigh the potential cost savings against the potential risks associated with project management and overall production quality. Do you need the support of a team or can you manage the project yourself?

    How much does DIY cost to create Digital Advertising Videos and their limitations?

    While DIY options like VideoGen and Animoto offer tempting monthly subscriptions ($220 and $40 respectively), we wouldn't necessarily recommend this route for professional digital advertising videos. If you must go this route, however, these are among the better options. Your success hinges on having a clear goal and finding the right template. Even with these tools, a strong narrative and script are essential—consider using AI tools for content research to help craft your message. Before launching a full campaign, test your DIY video with a small focus group to gauge quality and engagement. Remember, while DIY might seem cost-effective initially, the limitations in terms of production value and potential for impactful results can outweigh the savings in the long run. Is the potential for a less effective video worth the cost savings?

    FAQs about digital advertising video production costs

    Get answers to common questions about the cost of digital advertising video production below!

    How much does digital advertising videos creation cost in 2025?

    On average, digital advertising videos production cost $900 to $4,000 per minute. Early-stage startups often spend under $1,400 per minute, while established brands focus on quality and tend to spend upwards of $3,100 per minute.

    Source Data

    Cost % of marketers
    $1,100 - $1,700 19.97%
    $1,701 - $2,500 20.17%
    $2,501 - $4,000 33.57%
    $4,001 - $5,000 15.29%
    $5,001 - $7,000 4.84%
    More than $7,000 6.16%

    How much is higher pricing relevant to higher digital advertising videos quality?

    Higher pricing is directly related to higher quality (68% of respondents). And (24% of respondents) think cost increase does not guarantee a great output always for digital advertising video.

    Source Data

    Cost % of marketers
    High Price is equal to High Quality 68%
    High Price sometimes get High Quality 24%
    Low Price can get High Quality 8%

    What budgets should be allocated for digital advertising videos production for the entire year?

    Marketers who have already produced video content in 2025 are 76% more likely to increase budgets. While marketers creating digital advertising video content for the first time plan to spend less than $7,000 in 2025.

    Source Data

    Budget % of marketers
    $4,000 - $6,000 19.97%
    $6,001 - $10,000 25.17%
    More than $10,000 54.86%

    What are the key factors that influence the pricing of a digital advertising video?

    We find that video length, complexity of animation, and talent fees are primary factors influencing the final price of a digital advertising video.

    How does the length of a video impact its production budget?

    We observe that longer videos typically require more filming, editing, and post-production, increasing the overall budget proportionally.

    What are some ways to reduce the cost of producing a video with a professional studio?

    We suggest exploring pre-existing templates, limiting revisions, and providing clear briefs to potentially lower production costs with studios.

    What is a reasonable price range for a high-quality digital advertising video for social media?

    We see high-quality social media videos ranging from $900 to $4000 when produced by agencies and $500 to $2000 for freelancers.

    Aside from production, what other costs should I budget for in my digital advertising campaign?

    We recommend budgeting for costs like distribution on platforms, paid advertising campaigns, and potential influencer marketing fees.

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