You ever wonder what it costs to produce an advertisement? At Ydraw we turn down a mountain of clients each and every week because they feel our prices are just too much. But how do our prices stack up against other companies? And just how cost effective is a whiteboard animation compared to other forms of advertising on the market?
Let’s do this thing.
I’m going to start with whiteboard animation, since that’s what Ydraw is primarily known for — though our library is quite diverse in terms of the types of products we offer.
A whiteboard animation running sixty seconds costs $7,500. This includes the customer’s choice of voice over artist, visual artist, a screenplay, and music/SFX.
Here’s an example:
Now, check out these prices for various forms of advertising, per Adage.com:
The average outlay for a commercial during the fifth season of AMC‘s “The Walking Dead,” making it the costliest scripted series on TV. The Oct. 12, 2014, season premiere drew 17.3 million viewers; the March 29 season finale, 15.8 million. According to averages from media buyers compiled by Ad Age during the upfronts; ratings according to Nielsen.
The amount Snapchat demands per “Brand Story” ad, a branded post (or “snap”) that appears within the app’s “Stories” feed. Snapchat doesn’t disclose user numbers. According to media buyers interviewed by Ad Age, January 2015.
The cost for a thousand impressions on Hulu for standard run-of-site in-stream video ads, with a minimum requirement of two ads per campaign. According to Hulu’s rate card, March 2015.
The cost of 30 seconds of ad time in the championship game of the 2015 NCAA Men’s Division I Basketball Tournament on CBS, when Duke will take on Wisconsin. That’s up from $1.49 million in 2014. Last year the championship game averaged 21.2 million viewers, down from 23.4 million in 2013. According to Kantar Media, Nielsen and media buyers interviewed by Ad Age.
The average cost for 30 seconds of commercial time in prime time broadcast TV last year. That’s up from $110,00 in 2013. According to Nielsen
The average cost of a 30-second commercial during “The Big Bang Theory” on CBS, the most expensive comedy on TV. “Big Bang” averaged 16.7 million viewers this season through March 12. According to Ad Age interviews with media buyers during the 2014 upfronts; audience according to Nielsen
The cost of one full-color ad on the front page of The New York Times. To appear on the Times’ front page, though, marketers must commit to a certain frequency, such as front-page ads every Tuesday for six months; the total cost of running frequent page-one ads would likely top $1 million. According to current and former Times executives interviewed by Ad Age, March 2015.
The average cost of a thousand impressions for a 30-second commercial in broadcast prime time in 2014, down from $25.06 in 2013. According to Nielsen
The cost of a thousand impressions for a sponsored photo on Instagram, down from $40 in 2013 when Instagram first rolled out ads. Instagram says more than 300 million people around the world check out the photo-sharing app each month. Instagram’s minimum ad spend is $200,000. According to rate cards provided to media buyers by Instagram in spring 2015, before any discounts; minimum spend is according to a media buyer interviewed by Ad Age, March 2015.
The cost of a thousand impressions for a sponsored video on Instagram. According to rate cards provided to media buyers by Instagram in spring 2015, before any discounts.
The cost of four weeks on Times Square’s biggest billboard, Clear Channel’s eight-story sign on Broadway from West 45th Street to West 46th Street. According to sources familiar with the sign’s cost as of March 2015.
Can you imagine paying over a million dollars for an ad that runs less than one minute?
Obviously, these are extreme examples. Here are some you might be more familiar with, according to this website:
National TV Advertising
Setup Cost — $63,000 to $8 million
Cost of Media — Approx. $342,000 per 30 second ad
National Magazine Advertising
Setup Cost — $500 to $397,800
Cost of Media — Approx. $250,000 per ad
National Newspaper Advertising
Setup Cost — $11 to $1.4 million
Cost of Media — Approx. $113,000 per ad
Direct Mail Marketing
Setup Cost — $50 to $7,200
Cost of Media — Approx. $51.40 per order
Setup Cost — $1,000 to $5,200
Cost of Media — $7-$70 per hour, or $35 – $60 per lead
National Search Engine Optimization
Setup Cost — $4,000 to $10,000
Cost of Media — Free, though it’s roughly $500 per month for an internet marketer
National Pay Per Click Marketing
Setup Cost — $4,000 to $10,000
Cost of Media — $0.05-$3 per qualified visitor, plus $500 per month to internet marketer
National Email Marketing
Setup Cost — $4,000 to $10,000
Cost of Media — $0.05 – $3 per qualified visitor, plus $500 per month to internet marketer
Web Content Marketing Campaign
Setup Cost — $6,000 to $12,000
Cost of Media — Free
A Whiteboard video falls in line with the final choice: Web Content Marketing Campaign. So, while the upfront cost of $7,500 for a sixty-second ad might throw you off, consider it a lifetime investment in terms of how you can promote your business.
Other campaigns, such as magazine or newspaper ads require constant updates and monthly fees. And while you’re certainly guaranteed to get a lot of impressions, chances are only a small percent of them are catering to your audience.
You have a little more leeway in this regard with a television or radio ad since you can choose which time of day, or programs to run it; therefore, guaranteeing the audience is at least fit for your product.
But, again, the fees. Lots and lots of fees. Plus, such ads quickly become dated. Or, they may not even be seen at all!
According to an article written in The Guardian in 2010 (!), it was reported that nearly 90% of audiences skipped through TV advertising. Such is common practice in today’s high-tech world of streaming services, and DVR satellite systems that let you fast forward through advertisements.
Ask yourself: when was the last time you truly paid attention to the commercials during a TV show, sporting event (outside of the Super Bowl), or movie you were watching?
In my house, we have our smart TV connected with our Google Movies account. Between that and Netflix, Hulu, and HBO Go, our exposure to TV advertising is quite limited.
Same with radio, where most ads go unheard because there are so many more convenient streaming options for music these days.
Now, the thing about a Whiteboard video, specifically, is that it features eye-catching visuals that are designed to attract an audience’s attention. And there are so many inexpensive ways to market them.
Yeah, Facebook charges a fee to advertise on their site, as does YouTube, and Instagram. According to FitSmallBusiness.com:
The short answer is $0.65 per click in the US. In other words, every $65 you put into Facebook gives you around 100 clicks on your ad, according to the Salesforce Advertising Index Q3 2015.
You can put your Whiteboard video on Facebook, and then, using the site’s unique features, ensure it gets seen by your target audience. You can customize the features to allow only specific states or regions to see your content, and you only pay when a potential client clicks your ad. That cuts out a lot of needless excess cost.
No, I’m not here to advertise for Facebook, but merely to demonstrate the myriad of ways you can use a Whiteboard video. You can post them on YouTube, or simply post them on your website. You can share them with clients, potential clients; use them at shows, and even put them on TV if you’ve got the budget.
And you can do all of this for $7,500!
There’s no worrying about OCD directors, stuck up actors, shooting schedules, or the myriad of problems that exist with a live-action commercial production. Check out this quote from JLB Media Productions:
The DGA (Director’s Guild of America), of which I am a member, considers low budget commercial work to be $75,000 per day, up to $225,000 for a three-day production. Most national commercials are several hundred thousand dollars up to a few million dollars. Directors are typically paid anywhere from $10,000 to $50,000 per day of shooting, but many times that means $25,000 for a one-day shoot that also involves two weeks of prep and another week bidding on the job against other directors.
And that doesn’t factor in the aforementioned cost to advertise your product. Smaller production companies will charge less, but the result more often than not looks like this:
Yikes! Does that ad reflect the company it’s promoting well?
Now, check out this Whiteboard video, which cost less to produce:
See the difference? Which business looks more professional? Which one required the least amount of time and headaches to produce?
So, before you dish out a gazillion dollars on a thirty-second TV, radio, or newspaper ad, give Ydraw a call. Our process is simple and guaranteed to produce the results you’re looking for.
I’m not saying I broke my chair by doing something irresponsible or life threatening or trying to race down the parking lot or anything.
I sneezed and broke my mother-flipping chair. How does that happen? HOW?
Let me explain it as best I can. My desk is in the front, you might think I was the receptionist, but I’m not. Thankfully, for them at least, I would be a terrible secretary.
I was doing some writing (it is in my job description as ‘writer’) and I was wedged up to my desk nice and snug. I was sitting more towards the edge of my chair and typing out something as I was listening to some music on my Bose headphones.
“Makin’ my way downtown, walkin’ fast, faces pass and I’m home bound!”
Without warning, I had a surprise sneeze. Not a super violent sneeze or anything, just a normal sneeze.
Immediately, I heard a small pop. I thought the quick action had popped the lever out of its place. You know, the little lever on the side on the chair that makes it so the chair will either lean back to stay up straight.
So I didn’t really think anything of it. I do like my chair up straight so I tried to lean forward to put the lever back into place.
When I tried though, the lever was already in place and the chair was wobbling wildly.
I still had my headphones on at this point, so I took them off to maneuver easier without a cord wrapping around me. When I took off the headphones I could hear my coworkers calling out to me.
Coworker: “Are you okay, out there?”
Me: “Uh, yeah.”
Boss: “Did you fall over?”
Me: “No. I think I broke my chair.”
Coworker: “What? How?”
Me: “Um, I’m not sure.”
So I finally wheel back a little and realize how bad the wobbliness really was. It was obviously broken more than I thought it was.
I overturned the chair and found this.
Yeah. I broke metal. METAL.
Now sure, I’m a big fella, like a pretty big fella. I’m 6’2” and look like I’m about 250 to 260 pounds when in actuality I’m heavier. My shoulders are incredibly broad and if I really put my mind to it I probably could be some sort of heavy weight lifter. It’s not for me, but I could do it.
So now I’m in my new job and within the first month of being here I broke my chair, by sneezing.
About this time is when I try and merge this anecdote into some sort of marketing or video production “life lesson”, so I’ll give it a try.
Don’t be caught feeling comfortable in what you’re doing, whether it be video scripting, writing, animation, marketing, or creating; a sneeze might come along and force you to stand all day with a cardboard box propping up your keyboard so you can type.
Because you’ll look like a full-fledged moron standing next to a broken chair.
Sometimes it doesn’t work to just tell your audience how your company can be essential to their business plan and how they need you so they can live a long and fruitful life. There are a lot of ads that are patronizing to the audience with incredibly dull narratives and poor acting. Perhaps by explaining what you do will persuade consumers better than any actor pretending to care about your company ever could. But here’s the problem, sitting and explaining your company is boring. It’s not engaging, it’s uninspired and it’s so very boring. Like, Jane Austen narrated by Ben Stein boring. So how do you balance out an entertaining video and explaining your company’s concepts and ideas?
Whiteboard explainer videos, of course! Let’s go through why.
ILLUSTRATIONS CAN HELP CONVEY COMPLEX CONCEPTS EASIER. Visual concepts are a driving force that allows your audience to grasp your ideas easier. The perfect example are the before and after pictures of meth addicts, though grisly they may be. The before pictures shows a healthy person who doesn’t seem to have any effects of drug abuse. The after pictures show the devastating and shocking effect that meth has on the human body. It appears as though the life had been sucked out of them. Without having to go into detail on how the drug has this effect, or why the person started to take the drug, the story of how it destroys you is clearly presented instantly.
WATCHING THE CREATION OF THE VISUALS IS CAPTIVATING. As the artist creates characters, environment and situations, the viewer is watching the story unfold in front of them. The simplicity of being able to watch that process pulls in the viewer and in turn they are keen on watching to see what comes next. Being able to see the illustration come to life adds a human touch to the video. Rather than having a polished animation from start to finish, the viewer gets to connect with the person behind the drawing. Knowing there is somebody behind that pen lets the viewer know there are people behind the drawing, just like there are people behind your company.
SIMPLE AND AFFORDABLE. Without having to use a crowded infographic that can come across more complex than it intends to be, a whiteboard animation is simple and tells your story without having to assault your viewer with statistics and mission statements. Perhaps the thing that stops most people from using video for their company is the cost. Luckily whiteboard explainer videos are incredibly cost effective and can reach a large number of people quickly.
USING NARRATIVE CAN PERSUADE AND MOTIVATE VIEWERS. Any parent knows the influence any kids TV show has on their children. Why when I was a lad, I too became a victim of Saturday morning television shows and for about 2 years straight dressed up like Pee Wee Herman…. EVERYDAY. It happened, deal with it. Just because the audience you have are now older and wiser doesn’t mean they can’t be persuaded by an engaging video. A study by LaMarre and Landreville in 2009 found that the difference of watching a film that reenacted a historical event and a documentary on the same subject had similar levels of issue interest and engagement with the narrative presented. Fictional stories are as effective as factual stories in persuading and shifting ideas related to the narrative. Both can be engaging and compelling experience for the viewer.
EASY TO DISTRIBUTE. Distribution of digital video is incredibly simple. A video can be uploaded to a many platforms an infinite amount of times. It can be sent in an email to consumers or link to your YouTube account. The entire world can take part of your company and the video can work its magic every hour of every day. Reaching your audience has been easier than ever.
A promotional video using whiteboard animation can present a complex subject matter into something that can be easily understood while being entertaining. That entertaining video can retain a high engagement rate and rack up views to direct consumers to your company. It’s simple, affordable, it’s easy to distribute to your clients and perhaps you’ll be able to have some free time to catch some Pee Wee Herman yourself. If that’s your thing, it’s certainly mine.
So what are the new video marketing trends coming out in 2014? Web video is still seeing massive growth, it has become a main stream activity for almost every house hold and should be a big part of your marketing budget.. Here are some interesting stats:
89 million people in the United States are going to watch 1.2 billion online videos today. (ComScore)
Online video users are expected to double to 1.5 billion in 2016. (Cisco)
Only about 24 percent of national brands are using online video to market to consumers. (Kantar Media)
Users sharing video on retail and brand sites chose Facebook 46 percent of the time, with email accounting for 40 percent and Twitter capturing 14 percent of shares. (Invodo)
Globally, online video traffic will be 55 percent of all consumer Internet traffic in 2016. (Cisco)
52 percent of consumers say that watching product videos makes them more confident in online purchase decisions. (Invodo)
Mobile and tablet shoppers are three times as likely to view a video as laptop or desktop users. (NPD)
Mobile video ads that include social media buttons drive 36 percent higher engagement. (Rhythm NewMedia).
Online video production will account for more than one-third of all online advertising spending within the next five years. (Borrell Associates)
76 percent of marketers plan to add video to their sites, making it a higher priority than Facebook, Twitter and blog integration. (Social Media Examiner)
92 percent of mobile video viewers share videos with others. (Invodo)
More than 1 billion unique users visit YouTube each month, spending more than 4 billionhours watching videos (YouTube).
2 billion video views per week are monetized on YouTube, and every auto-shared tweet results in six new YouTube browsing sessions (ReelSEO).
Obvisoulsy we love video and we want to show you what we have coming down the pipeline. Here at Ydraw we want to stay on top of the new trends but more importantly we want to keep doing what works and what will drive you the most revenue.
1. Whiteboard Video
Our whiteboard videos continue to outperform all other types of video. Many of them have a 75% retention rate. They are still a hot commodity so look for our new innovations in whiteboard animation videos, this also includes the yswipe videos. If you have not seen our whiteboard animation video you can check them out here… whiteboard demo videos
2. 3d Animation
Up until now, 3d animation videos have been very expensive. They take a lot of time and collaboration just to get started. Ydraw is about to change this. We now have a team of 3d animators. A lot of companies will spend $20,000 for a simple 2D animation video, but now they can have a 3D video. Check out our screen shots. We will have it completed next week for the whole world to see.
3. Animation Videos
It is hard to get away from the standard animation videos. We have been very hesitant to enter this field due to the fact that their are a lot of good companies creating simple animation videos. They can also be called After Effect videos. If we can not be the absolute best then we usually do not enter the game. That is going to change in 2014. Ydraw is now going to offer simple animation/After Effects videos. We have been seeing a lot of junk being produced and we know we can produce a lot better quality for the same price. Plus, we have the talent to make it happen. Our animation demo video will be launched next week. Here is a nice picture to give you a preview.
Get ready to order your new Whiteboard Video, 3D Animation Video, or your Standard Animation Video.