How Brands are Investing in Video Marketing On a Budget and Generating ROI
Video has rapidly become one of the most important channels in the modern marketing mix. Consumers crave video content, and brands that deliver it consistently see higher engagement, conversions, and customer loyalty.
Consider these eye-opening video marketing statistics:
- 86% of businesses use video as a marketing tool, up from 61% just five years ago (Wyzowl)
- 84% of consumers say watching a brand‘s video convinced them to make a purchase (Wyzowl)
- Mobile video consumption rises by 100% every year (Insivia)
- Viewers retain 95% of a message when they watch it in a video, compared to 10% when reading it in text (Insivia)
Clearly, video‘s influence on everything from brand awareness to lead generation to customer experience makes it a non-negotiable for businesses of all sizes. But what about small-to-medium brands and marketing teams working with limited resources and budget?
Fortunately, investing in video doesn‘t require blockbuster spending. By getting resourceful and strategic, any brand can leverage video to drive growth and revenue without blowing their budget.
The State of Video Marketing Investment in 2022
To understand how brands are approaching video in the current landscape, the HubSpot Blog surveyed over 500 global marketers on their video marketing investments, strategies, and results. Here‘s a snapshot of the key findings:
Video budgets are increasing, but marketers still feel strapped
- 52% of marketers say their budget for video increased in 2022 compared to 2021
- Despite this increase, 31% of video marketers say their biggest challenge is having an inadequate budget to create video content
This reveals that while more brands are recognizing and investing in the power of video, many marketing teams still feel constrained by their video budgets and unable to execute to their full vision and potential.
Brands are allocating up to half of their total marketing budget to video
When asked what percentage of their total marketing budget goes toward video, the responses vary:
| Percentage of Budget | Percentage of Marketers |
|---|---|
| 1-20% | 39% |
| 21-40% | 31% |
| 41-60% | 20% |
| 61-80% | 8% |
| 81-100% | 2% |
While 39% of marketers still allocate just 1-20% of their total budget to video, 61% are committing over a fifth of their budget, with 30% allocating between 41-60%.
This suggests that while video commands a significant share of overall marketing spend, there is still plenty of room for brands to scale their investment incrementally as they prove ROI.
Marketers are sticking to a quarterly video budget of under $20K
We also asked marketers about their average quarterly spend on video marketing in absolute terms:
| Quarterly Video Spend | Percentage of Marketers |
|---|---|
| $1K-$10K | 40% |
| $10K-$20K | 28% |
| $20K-$40K | 12% |
| $40K-$60K | 7% |
| $60K-$100K | 6% |
| $101K-$200K | 4% |
| Over $200K | 3% |
A significant 40% keep their quarterly video budget under $10K, while 68% spend $20K or less. Less than a quarter (23%) have a quarterly budget over $40K.
This indicates that most brands are learning to do more with less and making their video investments go further through agile production.
Scrappiness wins the day with video production
When it comes to costs for a single video asset, budget-consciousness is even more apparent:
- 91% of marketers say they spend under $50,000 to create one marketing video
- 53% spend under $10,000 per video
- Only 9% spend over $100K on a single video asset
Considering most brands are creating multiple videos per quarter and the average cost of a professional video ranges from $1,000-$100,000, it‘s clear marketers are embracing more DIY and low-cost production methods to deliver video consistently.
5 Savvy Strategies for Video Marketing ROI on a Budget
Now that you have a sense of the video marketing investment landscape, let‘s explore some proven tactics to squeeze more out of every video dollar and drive serious results.
1. Develop a video content strategy aligned to your goals
Without a clear strategy, it‘s easy to waste resources on the wrong video content. Before diving into ideating and producing videos, take a step back and define:
- Your target audience for each video (e.g. prospects, customers, influencers, recruiters)
- The goal of each video (e.g. brand awareness, demand generation, customer education, hiring)
- The video format and style to best achieve that goal (e.g. explainer, product demo, testimonial, vlog)
- The primary distribution channel for each video (e.g. paid social, organic social, website, events)
- The metrics you will track to measure success (e.g. views, average watch time, click-through rate, conversion rate)
Aligning your video content to specific objectives and target viewers will focus your budget and efforts for maximum impact.
2. Insource straightforward videos & outsource complex projects
One of the biggest dilemmas brands face is whether to produce video content in-house or hire outside help. The right approach depends on your team‘s capabilities, bandwidth, and the complexity of the project.
Based on our research:
- 69% of marketers say they own video production equipment
- 10% say they exclusively rent equipment
- 58% believe creating video content in-house is more affordable than outsourcing
There are pros and cons to each route. Producing videos internally avoids the markup of agencies and keeps content authentic to your brand voice. However, external partners often have better creative chops, technical skills, and production technology that elevates quality.
My recommendation is to insource straightforward videos your team can handle, such as:
- Social media clips and GIFs
- Unboxing videos
- Interviews and thought leadership
- Event recaps
For more strategic, complex, or large-scale productions, it often pays to outsource to experts who can ensure a polished final product, such as:
- Brand story videos
- Commercials and video ads
- Scripted Shows
- 2D & 3D animation
- VR/360 videos
Ultimately, a hybrid approach allows you to maintain the right balance of cost-efficiency, quality, and brand cohesion.
3. Stretch your video creation dollars
Production tends to be the biggest line item in any video marketing budget. In fact, our survey found production accounts for 24% of the average video marketing budget, followed by pre-production (18%) and post-production (18%).
With some creativity and resourcefulness, you can significantly trim costs in all three of these areas without sacrificing quality or alienating your audience:
Talent: Rather than shelling out for actors or influencers, tap your most charismatic employees, interview real customers, or put out a casting call to local universities. For voiceovers, consider using freelancers from sites like Fiverr or buying a bundle of clips from services like Voice Bunny.
Equipment: Skip the fancy gear and shoot most of your content on a smartphone. Basic lighting, a lavalier mic, and a sturdy tripod can dramatically increase production value. When you do need a special lens or rig, rent it from a local camera house or through an online marketplace like KitSplit.
Locations: Avoid permitting and location fees by taking advantage of your office space, outdoor public spots, or employee homes (as long as they‘re camera-ready). For a more polished look, book a studio or unique location by the hour on sites like Peerspace and thisopenspace.
Music & Graphics: Instead of pricey custom scoring and motion graphics, take advantage of free or low-cost stock media libraries. Sites like Artlist and Soundstripe offer royalty-free music and sound effects, while Envato Elements and RawShorts provide affordable stock video clips and graphics templates.
Editing & FX: Stick with basic video editing software like iMovie (free), Adobe Premiere ($20/month), or DaVinci Resolve (free). If you need more advanced features and visual effects, try a low-cost tool like HitFilm Express. Upwork and Behance are also great resources for finding affordable freelance video editors.
By reducing production costs through a combination of DIY resourcefulness and affordable alternatives, you can reallocate more of your budget to strategic activities like video SEO, paid promotion, and repurposing content across multiple channels.
4. Repurpose video content across multiple formats & channels
Creating a video isn‘t a "one-and-done" effort. To maximize the value and reach of your video assets, develop a strategy for slicing and dicing them into multiple formats and distributing across various touchpoints. This allows you to drive more ROI from a single upfront production investment.
For example, let‘s say you create a 2-minute brand story video for your website‘s About Us page. Here are some ways you could repurpose that asset:
- Cut a 30-second version for pre-roll YouTube ads and paid social
- Create 10-second micro-videos for Instagram and Facebook stories
- Pull out the most impactful quotes for quote graphic social posts
- Transcribe the video and turn it into a blog post and/or press release
- Use the audio as a podcast or Clubhouse room trailer
- Embed snippets of the video in sales enablement materials
By atomizing your video content into an ecosystem of snackable, multi-format assets, you greatly increase the lifespan, impact, and cost-efficiency of your investment. In fact, 73% of marketers who repurpose video content see an improvement in ROI.
To keep everything organized, use a content repurposing template or matrix that maps all possible video assets against available channels and funnel stages. This will help you visualize how to slice and dice each video to reach the right audiences with the right message.
5. Leverage user-generated content & employee advocacy
One of the most overlooked sources of affordable, authentic video content is your own customers and employees. User-generated content (UGC) and employee-generated content (EGC) is not only more cost-effective than brand-produced video, it also tends to outperform in terms of engagement and conversion.
In fact, 79% of people say UGC highly impacts their purchasing decisions, and UGC videos are 50% more trusted by consumers than traditional marketing videos.
Encourage your customers to create and share video testimonials, product reviews, unboxing experiences, and lifestyle content featuring your brand. You can even turn it into a fun contest and offer prizes or perks for the best submissions.
Mobilize your team to record casual behind-the-scenes clips, day-in-the-life videos, and quick tips that showcase your company culture and thought leadership. Create an employee advocacy program that incentivizes them to share brand videos on their own social channels.
By curating and amplifying content from your biggest fans and internal champions, you not only save on production costs but also tap into the power of social proof and authenticity.
Budget-Savvy Video Marketing is the Future
As video continues its dominance of the digital content landscape, brands can‘t afford to be left behind. But investing in video doesn‘t have to mean overhauling your entire marketing budget.
By focusing on strategic planning, agile production, repurposing, and leveraging your community, you can create share-worthy videos that engage your audience and drive business growth — without breaking the bank.
Embrace the shift to scrappy, budget-conscious video marketing and start maximizing the ROI of your efforts. Your audience, and your bottom line, will thank you.
