How Much Does an Average Commercial Cost? - Sparkhouse

How Much Does an Average Commercial Cost?

Videos have unbeatably fast reach and scale, and on average, they receive 12% more shares than text and images combined. Moreover, 64% of consumers are more likely to buy a product after watching a video. If a picture is worth a thousand words in the business world, then a video is priceless. Although the benefits are clear, many businesses cringe when they imagine the cost of video production.

So, how much does it cost to produce an average commercial or video? The answer is, it depends. Asking a production company how much a video cost is like asking an architect how much a house costs. In reality, there are so many factors and variables involved. At Sparkhouse, most of our projects start around $20k and can go up to 6 figures, but we try to tailor the budget to the client’s needs/ wants. Below, we will explain what determines video production cost, and give you smart tips to keep the costs down.

It all Depends on the Concept

A winning video always starts with a brilliant idea. The concept defines the idea you want to pass across in the video to help you achieve your goals. As the business owner, you can think up an idea, then enlist a professional to write a first-rate script. However, a complex concept means your production company will have to spend more time on your project, driving up the costs.

Luckily, you can make significant savings if you search for videos that can help your production team to quickly get a good sense of your taste and goals. Here are a few key parts of a concept that affect your budget.

Number of Actors Needed

The number of people involved in the production of the video will affect the final cost. If it’s just one person explaining the benefits of your product, then you won’t need a big budget. If you need several professional actors, you will need to budget for auditions, pay the actors for their time, and pay for usage releases. Depending on the role of the actor, you can expect to pay around $1,000–$5,000/ per actor. Fortunately, you can slash these costs if you have an employee or friend who can take the stage.

Number of Locations Needed to Rent and how Much They Cost

Where the shoot takes place directly affects the look and feel of the video. If you need to rent a shooting location or a number of them, you need to plan your budget accordingly. Other location costs include paying scouts to search for the right place, insurance on the rental, permits, and cleaning. Typically, you can expect to pay between $2,500–$10,000 per location rental. If you have a spacious, elegant office (or home), or a colleague who will let you film in a stylish space they own in return for a favor, you can shoot from there to drive down the cost.

Number of Shooting Days Required to Film

A small-scale promo can easily be shot in a few hours, while a bigger production can take weeks. Combined with the rental rates for equipment and day rates for the crew, you can easily see how each additional day of shooting weighs on the budget. At Sparkhouse, we normally get around that by having REALLY long and efficient 10-12 hour shooting days.

Number of Props and Wardrobe Needed to Rent or Purchase

To spice up your video and keep viewers engaged, don’t ignore the importance of wardrobe, props, and artistic backgrounds. Depending on your concept, you can use props and wardrobe that you or the actors already own or use items that you can rent and return after the project is complete.

The Complexity of the Editing Needs

Editing costs will be affected by the amount of footage you shot, the number of days of editing required, and the final length of the finished video. Other factors that can increase the editing budget are visual effects and sophisticated graphic designs that will be included in the video.


So, in the end, did we answer the question? Maybe not technically, but hopefully, you have a clearer idea of what to expect as well as some fun and creative ways you can save on budget. For a deeper dive into our pricing, you can look at our pricing sheet that has examples of work, as well as the variables that contribute to the overall budget.

Interested in making a great commercial or animation video? Sparkhouse is commercial video production company that offers innovative way to help you tell your story creatively. deliver your vision, and maximize your budget so that every dollar is spent wisely. Feel free to get in touch with us today!

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