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Published: January 2, 2025

How Much Does Online Ad Video Production Cost In 2025?

Online video ad production pricing can range from $1,500 and $7,000, with initial cost estimates begin at $1,100. We've found that many popular video styles like whiteboard animation, 2d animation, and explainer videos, are typically within this pricing; however, explainer videos often have a tighter average cost range of $2,000 and $3,000 and a quicker 2 to 4 week production timeline.
Online Ad Video
methodology:
  • Join the 3,400+
    trusting Advids to elevate your brand with compelling online ad video. Many online ad video providers rely on generic templates. That’s not how we create at Advids. We craft custom video ads designed for maximum impact.

 Advids
Online Ad Video Pricing

  • Advids Expertise
    • 48 award-winning creative team members specializing in online video ad creation, including whiteboard, 2d and explainer videos.
    • Full-service production for impactful video ad campaigns, delivering high engagement and results.
    • Custom design for unique and engaging video ads, leveraging our deep video expertise.
  • What Sets Advids Apart

    Our team is ready to help you boost conversions with compelling video ads.

    • Strategic Planning: Dedicated video production manager and creative team to plan, execute, and deliver your online ad video projects.
    • Compelling Storytelling: Expertise in crafting compelling narratives, impactful visuals, and persuasive calls-to-action.
    • Target Audience Focus: Deep understanding of customer journeys and pain points.
    • Visual Excellence: Motion graphics and animation expertise.
    • Client Collaboration: Ongoing project communication and feedback integration.
    • Optimized Delivery: Delivery of high-quality video assets optimized for various platforms.
    • Engaging Scripts: Scripts tailored to resonate with target audiences.

 

Join the 3,400+
trusting Advids to elevate your brand with compelling online ad video.

Many online ad video providers rely on generic templates. That’s not how we create at Advids. We craft custom video ads designed for maximum impact.

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Key Takeaways

  • 83.7% of businesses are happy with the return on investment (ROI) they receive from advertisements.
  • 37.3% of businesses use a data-driven strategy for their advertisements.
  • 62.6% of businesses plan to increase spending on mobile advertisements in 2025.
  • 18.2% of businesses are willing to experiment with new video formats and strategies.
  • 49.4% of businesses say they're currently using, or are open to using, a video production agency for their advertisement production.

Factors

What factors influence the cost of online ad video creation?

Understanding the factors that influence online ad video production costs is crucial for effective budgeting. Let's break down the key elements that can impact your investment.

Primary Factors


1. Video Length: A longer online ad video, say a three-minute explainer, will naturally require more production time and resources than a concise 30-second ad, impacting the overall cost.
2. Video Design Complexity: Highly detailed animations or intricate visual effects in your online ad video will demand more specialized skills and software, increasing the production budget.
3. Video Production Scope: Extensive pre-production for your online ad video, such as in-depth market research or multiple script revisions, adds to the project's complexity and cost.

Secondary Factors

4. Voice-over Talent Selection & Direction: A professional voice actor with a distinct style can elevate your online ad video, but their expertise comes at a premium.
5. Music Licensing Fees: Securing the right music for your online ad video, whether royalty-free or custom-composed, is an essential cost consideration.
6. Number of Revisions: Multiple rounds of revisions for your online ad video, while ensuring a polished final product, can impact the overall project timeline and budget.

How to optimize online ad video creation budget?

Managing your online ad video budget requires a strategic approach. These 6 factors can impact the cost by as much as 40%. Remember, 37% of businesses already leverage data-driven creative for their videos, indicating the value of strategic planning. A well-defined budget ensures your video is effective without overspending. Ready to budget?

Our simple budgeting guidelines are:

Collaborate: Partner with your chosen agency early. Let them guide your budgeting process for optimal results.
Define Scope: Clearly outline your must-haves versus nice-to-haves for your online ad video.
Transparency: Discuss your budget openly with your agency. Explore options that align with your financial goals.
Value Focus: Prioritize value over the lowest price. 49% of businesses are open to using agencies, recognizing the value they bring.

How to get exact budget for your online ad video production?

Securing an accurate budget requires proactive communication and a clear vision. Start by preparing a detailed brief outlining your objectives, desired style, and target audience for your online ad video. What's your vision?

Here's how to navigate the process:

Share Inspiration: Provide 1-2 reference videos that capture the style and tone you envision for your online ad video.
Scope Clarity: Request a detailed scope of work outlining milestones, payment terms, and revision flexibility for your online ad video project.
Premium Extras?: Inquire about any premium services included, such as scriptwriting or custom animation for your online ad video.
Client Input: Understand the level of creative input expected from you throughout the online ad video production process. This can affect the cost.
Negotiate Value: Explore potential discounts or long-term partnership opportunities. Negotiating effectively can save money.
Special Pricing?: Don't hesitate to ask for a special price, especially if you're commissioning multiple online ad videos.
7. Future Updates?: Discuss the possibility of future updates or revisions to your online ad video, and associated costs.
8. Payment Structure?: Understand the payment structure. 18% of businesses are willing to experiment with new formats, so a flexible payment plan can be beneficial.


Remember, 62% of businesses plan to increase their video ad spending in 2025, highlighting the growing importance of this medium. By following these steps, you can secure an accurate budget and maximize your online ad video investment. Ready to start?

Overall average cost of online ad video

The average cost of a 60-second online ad video is $3,160, 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 $8,000, balancing quality, customization, and value.
  • Geographical spending on video ad production -

  • US-based companies spend average of $6,520 for 60 seconds
  • European companies spend average of $4,210 for 60 seconds
  • Asian companies spend average of $1,900 for 60 seconds
  • Companies types and their online video ad 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 $1,600 to $4,200 is average spend per minute.
  • Enterprise companies spend a higher price for rich aesthetics and branding, an average of $4,600 to $8,000 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 21% compared to previous year. Returning clients expect to get the same quality of online ad videos at a discounted price of 28% to 33% on average.

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

    Online Ad Video Pricing List

    Choosing the right online ad video style is crucial for effectively reaching your target audience. We'll explore various ad formats, outlining their costs, ideal lengths, use cases, video elements, and production timelines to help you make informed decisions.

    Below is average per minute pricing

    1. Simple Product Demo Pricing: $1,500 - $2,500
    Use Cases: Product Showcase, Feature Highlight, New Arrival
    Ideal Length: 6 seconds, 15 seconds
    Video Elements: Screen Recording, Text Overlays, Product Shots
    Production Timeline: 1-2 weeks

    2. Whiteboard Explainer Pricing: $2,000 - $3,500
    Use Cases: Onboarding, Feature Highlight, Problem/Solution
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Hand-drawn animation, Simple characters, Text overlays
    Production Timeline: 2-3 weeks

    3. 2D Animated Product Demo Pricing: $2,500 - $4,500
    Use Cases: Product Functionality, Software Demo, App Tutorial
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: 2D animation, Icons, Text animations
    Production Timeline: 3-4 weeks

    4. Animated Explainer Video Pricing: $3,000 - $5,000
    Use Cases: Brand Storytelling, Service Explanation, Complex Concepts
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Character animation, Backgrounds, Transitions
    Production Timeline: 3-4 weeks

    5. Motion Graphics + Product Demo Pricing: $3,500 - $5,500
    Use Cases: Product Launch, Brand Awareness, Creative Showcase
    Ideal Length: 15 seconds, 30 seconds
    Video Elements: Kinetic typography, Abstract shapes, Dynamic transitions
    Production Timeline: 4-5 weeks

    6. Live Action Product Demo Pricing: $4,000 - $6,000
    Use Cases: Product Usage, Testimonial, Behind-the-Scenes
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Actors, Real-world setting, Product interactions
    Production Timeline: 4-5 weeks

    7. Animated Character + Product Demo Pricing: $4,500 - $6,500
    Use Cases: Engaging Storytelling, Product Personality, Targeted Demographics
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Character design, Animated expressions, Product integration
    Production Timeline: 5-6 weeks

    8. 3D Product Demo Pricing: $5,500 - $7,000
    Use Cases: Detailed Product Showcase, Intricate Designs, Realistic Visuals
    Ideal Length: 15 seconds, 30 seconds
    Video Elements: 3D models, Textures, Lighting
    Production Timeline: 6-8 weeks

    How much does online ad video production cost?

    Ever wondered how much bang you get for your buck with online video ads? In our experience, online ad video production typically costs between $1,500 and $7,000 for a one-minute video. This range encompasses various popular styles, from motion graphics combined with product demos to engaging animated explainers. One radical thought: quality doesn't always demand exorbitant prices. A powerful statement: Striking the right balance between quality and cost is key. Choosing the right format—like a 2D animated product demo—can significantly impact both your message and your budget. We often include services like scriptwriting, voiceover, music licensing, and revisions. Many production companies offer tiered packages—basic, standard, and premium—to suit different budgets. Remember, 83% of businesses report a positive ROI from online video ads. Cost varies based on video length, complexity, talent fees, and post-production needs. While 60 seconds is standard, consider shorter 15 or 30-second versions for specific platforms. Focus on value delivery within each second. Custom production means your video is tailored to your brand, unlike generic templates. This bespoke approach can significantly elevate your returns.

    How does online ad video creation pricing work?

    comparing quotes can be tricky. Don't just look at the bottom line; assess the value proposition. A lower price might mean compromised quality or less experienced talent. One often overlooked factor is the inclusion of revisions. How many rounds are included? What's the process for requesting changes? Approach pricing strategically. Define your video goals and desired outcomes. If you're aiming for a high-impact animated explainer video, for instance, understand that the complexity and artistry involved will likely place it on the higher end of the pricing spectrum. Align your budget with your ambitions.

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

    What is the average pricing range for custom online ad video creation?

    For truly custom online ad video creation, consider a live-action product demo. This format demands meticulous planning, professional actors, location scouting, and potentially specialized equipment. It's the right choice when you want to showcase your product in a realistic, tangible way, connecting with your audience on a personal level. For this level of custom work, expect a pricing range between $5,500 and $7,000. This investment reflects the expertise and resources required to bring your vision to life. Custom elevates returns.

    What is the estimated cost range for a 60 seconds online ad video?

    A 60-second online ad video typically falls within the $1,500 to $7,000 range. Don't hesitate to negotiate for more value. Ask about including versions with different calls to action or aspect ratios optimized for various platforms. Maximize your 60 seconds by creating variations targeted at different user personas. A simple edit can make a world of difference. Consider including raw files for future use. A motion graphics + product demo video, for example, can benefit from these variations, allowing you to test different messaging and targeting strategies. Negotiate for value.

    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 Online Ad Video production agency?

    Is finding the right balance between cost and agency expertise a challenge? In our experience, hiring a professional online ad video production agency typically costs between $3,500 and $5,500 for a one-minute video. We recommend thoroughly reviewing agency portfolios and client testimonials on platforms like Google Reviews. Comparing proposals from multiple agencies (3-5 is a good starting point) ensures you're getting the best value. Develop a shortlist based on criteria like production quality, responsiveness, and creative vision. Think long-term: the right agency can become an ongoing content partner, maximizing your video marketing ROI. A radical thought: consider agencies specializing in your industry for deeper market understanding. Benefit: a specialized agency can tailor your video's message for optimal audience engagement.

    How much does freelancers cost to create Online Ad Videos?

    Are freelancers a viable option for online ad video creation? While freelancers can be 30% to 70% cheaper than agencies, typically ranging from $1,000 to $2,500 per minute of video, managing the project effectively becomes crucial. If you choose this route, prioritize freelancers with a proven track record in online ad video production. Be aware that freelancers, often working solo, might have limitations in pre-production research and project management compared to a full-service agency. Freelancers typically charge hourly rates, varying between $25 and $75 depending on experience and location. One benefit: you might have more direct creative control. A radical thought: consider a hybrid approach, hiring a freelancer for specific tasks while retaining overall project management.

    How much does DIY cost to create Online Ad Videos and their limitations?

    Considering the DIY route for online ad video creation? While we generally recommend professional services, tools like VideoGen ($220/month) and Animoto ($40/month) offer accessible options. If you choose DIY, clearly define your video's goal and select templates aligned with your vision. Meticulous scripting is essential; leverage AI content tools for a polished narrative. Test your DIY videos with a small audience before widespread release to gather feedback on quality and engagement. A radical thought: DIY can be effective for simple videos, but complex projects often benefit from professional expertise. Benefit: DIY offers greater control over minor revisions and adjustments.

    FAQs about online ad video production costs

    Get answers to common questions about the cost of online ad video production below!

    How much does online ad videos creation cost in 2025?

    On average, online ad videos production cost $1,500 to $7,000 per minute. Early-stage startups often spend under $1,900 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 online ad videos quality?

    Higher pricing is directly related to higher quality (68% of respondents). And (22% of respondents) think cost increase does not guarantee a great output always for online ad video.

    Source Data

    Cost % of marketers
    High Price is equal to High Quality 68%
    High Price sometimes get High Quality 22%
    Low Price can get High Quality 10%

    What budgets should be allocated for online ad 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 online ad 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 is the typical budget range for a simple online ad video?

    We see simple online ad videos typically costing between $500 and $7,000, depending on the chosen production method. Freelancers often charge less than agencies.

    What factors can significantly increase the price of online ad video production?

    We find that video length, animation complexity, special effects, and talent fees often lead to a significant increase in production price.

    How can I reduce the cost of producing an online ad video with a studio?

    We suggest providing clear creative briefs, using pre-existing assets, and limiting revisions to reduce production costs with a studio.

    What is the average pricing difference between hiring a freelancer and an agency for online ad video production?

    We observe an average price difference of $1,000 to $5,500 between freelancers ($500-$2,000) and agencies ($1,500-$7,000) for similar projects.

    Does the pricing for online ad video production include distribution and marketing costs?

    We clarify that video production pricing usually covers only the creation process. Distribution and marketing costs are typically separate budget items.

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