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Published: January 2, 2025

How Much Does Online Advertising Video Production Cost In 2025?

On average, video ads for online platforms production costs can range from $1,500 and $8,000, with starting estimates as low as $1,100. We've found that many popular video styles like explainer videos, product demo videos, and social media video ads, fall within these costs; however, social media video ads often have a tighter average cost range of $2,000 and $4,000 and a quicker 2 to 4 week production timeline. The pricing is based on complexity.
Online Advertising Video
methodology:
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Online Advertising Video Pricing

  • Advids Expertise
    • 48 award-winning creative team members specializing in video ads for all businesses.
    • Full-service production for impactful explainer videos, maximizing client reach.
    • Custom design for product demo and social media video ads, driving measurable results.
  • What Sets Advids Apart

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

    • Compelling Storytelling: Crafting engaging narratives and impactful visuals specifically designed for maximum impact.
    • Deep Understanding: Extensive knowledge of target audiences and effective advertising strategies.
    • Data-Driven Approach: Utilizing analytics to optimize video performance and maximize ROI.
    • Motion Graphics & Animation: Expertise in creating visually stunning motion graphics and animations.
    • Ongoing Collaboration: Consistent communication and feedback integration throughout the project.
    • Platform Optimization: Delivery of high-quality video assets optimized for various online platforms.
    • Engaging Scripts: Creating scripts tailored to resonate with your specific target audience.

 

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Key Takeaways

  • 83% of businesses find balancing creative vision with budget constraints to be their biggest challenge in video creation.
  • 37% of businesses prefer short, snappy videos for showcasing their apps.
  • 62% of businesses use app downloads, engagement rates, and cost per acquisition (CPA) as their key performance indicators (KPIs) for measuring mobile app video success.
  • 18% of businesses primarily target potential users aged 25-45 with their videos.
  • 49% of businesses use A/B testing to optimize video elements like calls to action and video visuals

Factors

What factors influence the cost of online advertising video creation?

Understanding the factors that influence video production costs is crucial for planning an effective online advertising campaign. Let's break down the key elements that can affect your budget, empowering you to make informed decisions.

Primary Factors:

1. Video Length: A longer online advertising video, say a three-minute explainer, will generally cost more than a shorter, 60-second product demo due to increased production time.
2. Video Design Complexity: Intricate 3D product visualizations for your online advertising video will require more specialized software and expertise than a simple 2D animated product demo, impacting the overall cost.
3. Video Production Scope: Extensive pre-production for your online advertising video, including detailed storyboarding and multiple script revisions, adds to the project's complexity and cost.


Secondary Factors:

4. Animated Explainer Video Style: A highly stylized animated explainer video for online advertising, with custom character design and complex animations, will typically cost more than a template-based approach. Remember, these videos commonly cost between $2,500 and $4,500.
5. Voice-over Talent Selection & Direction: Choosing a well-known voice actor for your online advertising video will likely increase costs compared to using a lesser-known, but equally talented, voice artist.
6. Music Licensing Fees: Securing popular, copyrighted music for your online advertising video will involve higher licensing fees than using royalty-free music or custom-composed scores.

How to optimize online advertising video creation budget?

Managing your online advertising video budget requires a strategic approach. These six factors can impact the cost by as much as 40%. A well-defined budget ensures you create compelling videos without overspending. Ready to plan? Engage a video production agency early on. They can tailor a quote to your specific needs, maximizing your ROI, which 83% of businesses report as positive from video ads.

Our simple budgeting guidelines are:

Define Must-Haves: Prioritize essential elements for your online advertising video and identify areas where you can be flexible.
Transparent Communication: Clearly communicate your budget and goals to your chosen video production agency.
Strategic Investment: Don't just chase the lowest price; invest strategically in quality for maximum impact on your target audience.

How do you get an accurate budget for your online advertising video production?

Start by clearly defining your objectives and desired outcomes. What message do you want to convey? Who is your target audience? This clarity will guide your pricing discussions.

Collaborating effectively with a video production agency is key to securing an accurate budget. Here's how:

Share References & Objectives: Provide 1-2 reference videos and a clear brief outlining your objectives for the online advertising video. This helps the agency understand your vision.
Detailed Scope of Work: Request a detailed scope of work outlining milestones, payment terms, revision flexibility, and potential future video updates. This transparency can affect the cost and prevent surprises.
Premium Extras & Creative Input: Inquire about any premium extras included in the package and clarify the level of creative input expected from you. 49% of businesses are open to using a video production agency, so leverage their expertise.
Discounts & Long-Term Partnerships: Explore potential discounts and the possibility of a long-term partnership. This can save money and foster a deeper understanding of your brand.
Negotiate Strategically: Always ask for a special price and clearly articulate the value you bring as a potential client. Are you a startup with limited budget but high growth potential? Communicate this! 18% of businesses are willing to experiment, so position yourself as an innovative partner.


By following these steps, you can secure an accurate budget and embark on a successful online advertising video production journey.

Overall average cost of online advertising video

The average cost of a 60-second online advertising video is $3,185, 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 $3,480 and $8,120, balancing quality, customization, and value.
  • Geographical spending on online advertising video production -

  • US-based companies spend average of $6,570 for 60 seconds
  • European companies spend average of $4,250 for 60 seconds
  • Asian companies spend average of $1,910 for 60 seconds
  • Companies types and their online video production budgets -

  • For startups and SMB businesses, a budget of $1,160 to $3,480 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 $1,620 to $4,180 is average spend per minute.
  • Enterprise companies spend a higher price for rich aesthetics and branding, an average of $4,640 to $8,120 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 advertising 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 Advertising Video Pricing List

    Navigating the world of online advertising videos can be daunting, but understanding the different styles and their associated costs can simplify the process. We'll break down popular online advertising video styles, their ideal lengths, use cases, common elements, production timelines, and estimated costs to help you make informed decisions for your marketing campaigns.

    Below is average per minute pricing

    1. Simple Product Demo Pricing: $1,500 - $2,500
    Use Cases: Product Showcase, Feature Overview, Quick Ads
    Ideal Length: 6 seconds, 15 seconds
    Video Elements: Screen Recording, Text Overlays, Basic Graphics
    Production Timeline: 1-2 weeks

    2. Whiteboard Explainer Pricing: $2,000 - $4,000
    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: $3,000 - $5,000
    Use Cases: Product Functionality, Software Tutorial, App Demo
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: 2D Animation, Icons, Text Animations
    Production Timeline: 3-4 weeks

    4. Motion Graphics + Product Demo Pricing: $3,500 - $5,500
    Use Cases: Brand Storytelling, Abstract Concepts, Product Launch
    Ideal Length: 15 seconds, 30 seconds
    Video Elements: Shapes, Kinetic Typography, Transitions
    Production Timeline: 3-4 weeks

    5. Animated Explainer Video Pricing: $4,000 - $6,000
    Use Cases: Service Explanation, Brand Story, Complex Topics
    Ideal Length: 60 seconds, 2 minutes
    Video Elements: Character Animation, Backgrounds, Transitions
    Production Timeline: 4-5 weeks

    6. Live Action + Product Demo Pricing: $4,500 - $6,500
    Use Cases: Testimonials, Product Usage, Behind-the-Scenes
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Actors, Real-world Footage, Product Shots
    Production Timeline: 4-5 weeks

    7. Animated Product Walkthrough Pricing: $5,500 - $7,500
    Use Cases: Software Tutorials, App Demonstrations, Product Tours
    Ideal Length: 2 minutes, 3 minutes or longer
    Video Elements: Screen Capture, Animated Graphics, Voiceover
    Production Timeline: 5-6 weeks

    8. 3D Product Visualization Pricing: $6,500 - $8,000
    Use Cases: Product Showcases, Prototyping, Detailed Views
    Ideal Length: 15 seconds, 30 seconds
    Video Elements: 3D Models, Textures, Lighting
    Production Timeline: 6-8 weeks

    9. Animated Character + Product Demo Pricing: $6,000 - $8,000
    Use Cases: Engaging Storytelling, Product Interactions, Character-driven narratives
    Ideal Length: 30 seconds, 60 seconds
    Video Elements: Character Animation, 2D/3D elements, Backgrounds
    Production Timeline: 6-7 weeks

    How much does online advertising video production cost?

    Ever wondered how much bang you get for your buck with video ads? In our experience, online advertising video production typically costs between $1,500 and $8,000 for a one-minute video. We've seen effective campaigns across this spectrum, from simple product demos to engaging 3D visualizations. A powerful statement: quality doesn't always demand exorbitant prices; strategic planning can achieve both. Choosing the right format hinges on your message and budget. A 2D animated product demo, for example, can effectively showcase features while keeping costs contained. Included services like scriptwriting, voiceover, and revisions are often standard, adding value to your investment. Many companies offer tiered packages—basic, standard, and premium—to suit varying needs. Remember, 83% of businesses report a positive ROI from video ads. Cost varies based on video length, complexity, and post-production needs. While 15-second spots might seem economical, a well-crafted 60-second video allows for deeper storytelling and stronger brand connection. Custom production means tailoring every element— visuals, script, music—to your specific goals, unlike generic templates. This bespoke approach elevates your brand and resonates more deeply with your audience.

    How does online advertising video creation pricing work?

    comparing quotes can be tricky. Look beyond the numbers and assess the value offered. A lower price might mean compromising on quality, expertise, or crucial elements like music licensing. One often-overlooked factor is the agency's experience in your specific industry. If you're launching a new software, prioritize an agency with a proven track record in tech demos, not just general animation. Align your video goals with your pricing expectations. For instance, a motion graphics video, ideal for showcasing data and abstract concepts, might fall in the mid-range of pricing. Don't just chase the cheapest option; invest strategically for maximum impact.

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

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

    For truly bespoke online advertising videos, consider a live-action production combined with product demos. This approach blends the human element with tangible product benefits, creating a powerful connection with viewers. This level of custom production, requiring skilled actors, location scouting, and professional filming, typically falls in the higher price range, between $6,500 and $8,000. Opt for this approach when you need to convey authenticity, build trust, and showcase your product in a real-world context. This investment is justified when targeting a discerning audience and aiming for a premium brand image.

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

    A 60-second online advertising video typically costs between $1,500 and $8,000. Negotiating effectively can unlock added value. Instead of haggling on price, focus on securing extras like multiple versions with different calls to action or aspect ratios tailored for various platforms. Maximize your 60 seconds by incorporating user personas and minor edits to resonate with specific segments. An animated explainer video, for example, can effectively communicate complex information in an engaging way within this timeframe. By securing raw files, you gain flexibility for future edits and repurposing. Think beyond the initial cost and consider the long-term value and potential for repurposing your investment.

    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 Advertising Video production agency?

    Is finding the right balance between cost and quality a challenge? In our experience, hiring a professional online advertising video production agency typically ranges from $3,500 to $5,500 for a one-minute video. We recommend thoroughly reviewing agency portfolios and client testimonials on platforms like Google Reviews. Comparing proposals from at least three to five agencies is crucial, ensuring each quote aligns precisely with your project specifications. This allows for a consistent comparison, empowering you to shortlist based on factors like production quality, responsiveness, creative synergy, and of course, budget. A radical thought: consider an agency as a long-term content partner, not just a one-off vendor. This fosters a deeper understanding of your brand, leading to more effective and cohesive campaigns. A key benefit of partnering with an agency is their ability to handle the entire production process, from concept to completion, freeing you to focus on your core business.

    How much does freelancers cost to create Online Advertising Videos?

    How do you navigate the freelancer landscape for video production? While freelancers can be a cost-effective option, often 30% to 70% less expensive than agencies (approximately $1,050 to $3,850 for a one-minute video), project management can become more demanding. If you choose this route, prioritize freelancers with a proven track record in online advertising videos. In our experience, successful collaborations with freelancers hinge on clear communication, well-defined milestones, and regular check-ins. Freelancers typically charge by the hour, with rates varying significantly based on experience and location. One potential drawback is that freelancers, being solo operators, may have limitations in pre-production research and strategic planning compared to a full-service agency. However, if your budget is tight and you're willing to take on more project management, a skilled freelancer can be a viable solution.

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

    Considering the DIY route for your online advertising videos? While we generally recommend professional production, we understand budget constraints can be a factor. Platforms like VideoGen ($220/month) and Animoto ($40/month) offer accessible tools for creating basic videos. If you choose this path, focus on finding templates that align with your goals and invest time in crafting a compelling narrative. Don't rely solely on text-to-video prompts; solid scriptwriting remains essential. Test your DIY videos with a small audience first to gauge their effectiveness and gather feedback on quality and engagement. Remember, while DIY can be cost-effective, it often requires a significant time investment and may not achieve the same level of polish and impact as professional production.

    FAQs about online advertising video production costs

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

    How much does online advertising videos creation cost in 2025?

    On average, online advertising videos production cost $1,500 to $8,000 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 advertising 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 advertising 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 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 online 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 an online advertising video?

    Key pricing factors include video length, complexity, animation style, talent fees, and the number of revisions required. Careful planning of these elements is essential.

    What is a reasonable budget to allocate for a high-quality online advertising video?

    We recommend a budget between $1,500 and $8,000 for professional agency-produced videos, while freelancers range from $500 to $2,000.

    How can I lower the cost of producing a video with an online advertising video production agency?

    To reduce costs, explore using stock footage, simplifying the animation style, limiting revisions, and providing clear creative briefs.

    What is the average price difference between a 60-second and a 90-second online advertising video?

    The price difference between a 60-second and 90-second video isn't solely proportional to length; added content complexity impacts pricing.

    Aside from production costs, are there other pricing considerations to factor into my budget?

    Consider costs like music licensing, voiceover artists, distribution platform fees, and potential marketing or advertising expenses.

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