Behind Commercial Animation Pricing
Animated videos are potent tools for any marketing strategy. If executed well, they can give you a huge return on your investment.
The numbers speak for themselves.
Research has shown that having a video on your landing page could increase your conversion by as much as 80%. Sixty-four percent of online users are more likely to purchase a product after seeing a video about it. Digital marketers who use video can grow your revenue 49% faster than those who don’t. It is no surprise that 30% of all online traffic today is in video format.
Commercial animation plays prominently in all these.
A perfect example is Crazy Egg’s animated explainer video. When they launched it three years ago, it immediately increased their profit by $21,000 per month. Even more important, the video continues to generate revenue for them to this day.
There is no doubt that a well-executed animated video can boost your revenue. But how much does it cost to make? Does the benefit justify its price?
These questions are a bit more difficult to answer, as most studio companies could not post a standardized rate on their websites. Making an animated video is a complex process that requires many different skill sets, that no two projects would cost the same.
Still, there are ways to estimate the commercial animation pricing that will convert more users into paying customers.
Length of the Video
One of the first things that animation studios ask their clients is what video length they want. This will give them an idea of how much resources are needed, such as the number of animators or designers to enlist for the project. It will also help them gauge the time it would take to complete the project.
Longer videos expectedly cost more, but they are more likely to get you discounts. However, it is important to note that anything over 60 seconds would not be of much use in marketing.
There is a wide range of animation styles to choose from, and the price is equally diverse. Whiteboard animation and motion graphics are at a lower price point, especially compared to even the most simple-looking 2D cutout animations or 3D renders. In between, there is the stop motion, frame-by-frame animation, kinetic typeset, and others.
Setting the Budget for Your Commercial Animation Project
As with most projects that involve cost, there are two ways to manage your marketing budget.
First, you can talk to multiple animation studios and discuss how you want the job done. Each of them would give you an estimated cost, and from there, you can choose which studio you are comfortable with.
This approach is ideal for unique projects that do not resemble existing or commonly-used frameworks. Just make sure that you have some wiggle room in your budget as the estimate may vary greatly from one studio to another.
Alternatively, you can pick a studio you like and ask them to give you the best possible product for a given cost. This is the better option if you are working with a hardline budget.
The Price Range
On average, a 60-second explainer video costs $7,972. However, this figure is not enough to give you a clear picture of your budget as the price distribution of animation studios is a bit uneven.
Much commercial animation pricing is in the $2,500 to $5,000 range, and some are in the $5,000 to $10,000 bracket. However, some studios charge as much as $20,000 for a 60-second explainer. On the flip side, some also only charge as low as $1,000 for their services.
The price range is so extensive, and this does not even include the outliers on both ends of the spectrum.
If you are confused, do not worry. Here are a few more examples to narrow it down:
Most animated videos last 60 seconds, have two characters and are done in cutout technique using a multi-colored flat design. Additional work would include music, voiceover, sound effects. Finally, you need to protect it for online or internal use with copyright. All things considered, a standard video animation like this would cost $6,000 to $10,000.
2-D animations are much more diverse. A whiteboard animation with no characters and stock graphics would cost around $3,000. On the other hand, 2-D animation with multiple characters, frame-by-frame animation, extensive research, complex scriptwriting, and many other pre-production activities would cost up to $50,000.
3-D animations are in a league of their own. The cheapest 3-D commercial animation video that lasts one minute usually costs $10,000. This is a simple video with no characters and uses standard models adapted from ones bought online. More complex videos with multiple characters and advanced features such as interactive capability can go as high as $200,000.
Doing the Math
This may sound expensive, especially for a video that lasts for only 60 seconds. However, you must consider the amount of effort that goes into it. It is a multi-disciplinary project that brings together many creative and technical skills, all working together to give you a cohesive product.
More importantly, a well-executed video can take your brand to the next level. If you achieve the same success that Crazy Egg did with their explainer video, then you would have made your investment back many times over.
A Smart Investment
If you are planning your first incursion into commercial animation, it is important to understand all the cost elements that the project involves. This will help you set a realistic budget that will give you the desired result without compromising your finances.
Planning your marketing budget is a delicate balancing act.
Cheaper offers would mean less upfront risk for your company, but remember that you get what you pay for. You would not want the first impression you make to be a bad one, as this will most like break your brand.
On the other hand, you would not want to put all your marketing eggs in one basket and risk the future of your company.
Work closely with your animation studio to develop an optimal strategy that would grow your business and your brand. It is an investment that would earn your company more money, as long as it is done properly.
For more information regarding commercial animation pricing, visit our blog page at AustinVisuals.com