There are several reasons why top down budgeting is best for your corporate video production. Most importantly, it allows the video production company to create the best video possible with the budget you have.
First, I need to explain what I mean by top down budgeting in the video production world. I’m referring to how a company decides what they want to spend on a video and how they then go about getting quotes from video production companies.
Related: focus on story in your video marketing.
In the corporate world, top down budgeting is when senior management sets a budget for the entire company. From that total budget, amounts are allocated to individual departments, and those departments must then divvy up their given budget within their department and allocate a number for each individual item.
When quoting for a video production, it simply means the client tells the production company – “We have $8k for the video, what can you do with that? What’s your creative solution for that dollar amount?” This generates the best result possible for both the client and production company.
The other way to quote is Bottom Up Budgeting. That’s where a company comes to a video production company and says – “We want a video. How much will it cost?”.
In this scenario, there is no script, RFP or detailed creative brief for the production company to base its estimate on. And there is no budget to know what there is to work with both creatively and technically.
Would you ever go to a home builder and ask, “how much will it cost to build me a house?” without telling the builder your budget or giving them any idea on what kind of house you want?
When the production company knows what the budget is, they can mold the creative solution to fit the budget you have.
It doesn’t do anyone any good if a production company comes up with a fantastic idea that will cost $25k to produce if your budget is $10k. However, if you state upfront your budget is $10k, then the production company can spend all their energy and brainstorming on coming up with an idea that can actually be produced.
Related: video marketing for social media.
This leads to the best creative solution for any given budget. It eliminates time wasted playing the guessing game for both client and production company and allows the production company to pack as much punch as possible into any given budget.
The ideal situation is when there is a script already written, or you can provide a RFP or a detailed creative brief along with your budget to the production company so they can quote based on the script/RFP/brief and your budget.
When there is no script, RFP, or creative brief – tell the production company what your budget is. Creating an environment that allows both client and production company to create the best video possible is why top down budgeting is best for your corporate video.
iCorpTv along with our creative division, Gate5, is a video agency and full service video production company in Los Angeles producing innovative high quality video content for the web, your social media outlets, kiosks and broadcast television.
We conceptualize, write scripts, secure locations and permits, cast actors, direct, film and edit viral videos, branded films, product and promotional videos, web and TV commercials, episodic content and live video streaming production.
Click here for our video samples.
Contact us to see how we can help your business with video or photography.