What’s the most effective way to supercharge your video marketing strategy? Do you expand your internal team and hire skilled video creators? Or do you outsource the project to a video production agency?
Well, if you choose to hire more people, you’ll be investing lots of time, energy, and money in recruiting top talent. They’ll also demand constant management and upskilling.
On the other hand, if you choose to outsource your video production, you might struggle to find a team that truly understands your business on the same level as you do or has the same level of dedication as your internal team.
This means each approach comes with its pros and cons. And in this post, we will thoroughly examine these and help you make an informed decision for your business.
Let’s get started!
Unlike text and images, video engages multiple senses. It makes the viewer listen, watch, perceive, feel, and even read —- all at the same time. The immersiveness of this content type makes it much more powerful than any other media.
As a result, when a marketing message is well-weaved with video storytelling, it generates emotional responses and leaves a lasting impression on the viewer’s mind. A report by Insivia confirms this — it states viewers retain 95% of the message from a video and retain only 10% from text content.
What’s more, wyzowl reports that 89% of people buy after watching a video. For 96% of people, explainer videos have deepened their understanding of a product or service — which, in turn, has pushed them deeper into the sales funnel.
We witness this powerful impact of video content ourselves every time our clients deploy the videos that we make for them. Check out Princeton Health’s growth for example. Their sales skyrocketed as soon as they published the explainer videos we developed for them.
Another outstanding example of the power of video marketing is Dropbox. It initially invested in an explainer video to validate its business idea (instead of investing in an MVP). This cost them only a fraction of money and time.
In another instance, Dropbox used video content to increase profits. They were charging only $99 for their product but spending $233 and $388 on every customer. This was risking the sustainability of their business.
To solve this, they paused ongoing marketing strategies and invested in an explainer video. As soon as the video went live, it yielded a 10% conversion rate — meaning 100 million customers!
So, you now understand why video matters. But before we can dive into a discussion on in-house vs. outsourced video production, it’s important to first determine what you wish to achieve from video content. The clearer you are about your goals, the more efficiently you’ll be able to spend your marketing budget.
Say, for example, you’re a small business that aims to get some eyes in the local market. It might be a good idea for you to post self-captured TikToks and reels. But if you aim to acquire customers or dominate the competitor, investing in a professional video might be the better choice.
We recommend considering the following to understand your needs thoroughly:
Once you understand your video production needs and goals, it’s time to choose between in-house vs outsourced production.
In-house video production is an approach to video content creation where you depend entirely on your business’ resources. It includes:
While arranging equipment and space is a matter of money, arranging the right human resources requires money and time. You’ll have to make sure you recruit individuals with an abundance of creativity, experience in their own art, and the capability to align your videos with your brand.
Given this, in-house video production is more suitable for established brands with a six-figure monthly revenue (or higher). It’s also a good fit for companies that prioritise quality assurance and brand alignment over speedy marketing.
Outsourced video production refers to hiring external professionals or agencies like Ivory Media and entrusting them with your video content creation. This approach allows businesses to leverage the expertise of specialised teams to conceptualise, shoot, edit, and even publish video content as per their needs — on a budget.
It’s an easier way to produce quality video content at scale, which is why this approach is best suited for businesses with limited marketing budgets as well as those that need a wide range of video types (such as explainer, training, and case study videos).
Now that you understand the pros and cons of both in-house and outsourced video production, consider the following before making a decision:
In-house video production is much more costly compared to outsourced video production. So, review your finances and determine if you can afford the costs associated with building an in-house video team, including salaries, equipment, and ongoing training.
If it seems ‘too much’ to be spending on marketing or risks your company’s financial stability, it’s best to outsource video production.
When evaluating the complexity of your video projects, take a close look at their unique demands. In-house production suits straightforward tasks. But for technical video projects (such as those that involve extensive market research or aim for conversions), consider outsourcing. It brings unmatched expertise and experience to the table, which can help you deliver exceptional content.
With in-house video production, you might be able to scale ongoing projects in the long term but you may not be able to handle sudden surges in demand. On the other hand, outsourced video production is great for handling changing workloads and creating different types of videos.
Sure, outsourced video production agencies can bring new ideas and creative elements to the table. But in-house teams guarantee 100% alignment with your brand’s culture and identity.
As mentioned earlier, outsourcing is a cost-efficient solution for your video production needs. You can predict the total expenditure, set up a realistic budget, and produce at least 2-3 videos in the same amount as one in-house video would cost you.
On top of that, external agencies act as specialised extensions of your core team. They have experience in their art and deliver polished, attention-grabbing videos in half the time. These teams also save video equipment and video software costs.
Since they are experts and know their industry inside out, they can incorporate the latest video trends in your videos. This, in turn, reduces the risk involved and maximises ROI.
Of course, every coin has two sides. Here are some situations where in-house video production makes more sense:
To make the right choice between in-house video production and outsourcing, we recommend evaluating all the factors given above in detail (including your unique needs, resources, goals, project complexity, budget, brand identity, and long-term scalability). Here is a quick table to help you out:
|In-house video production
|Outsourced video production
|In-house production requires a significant initial investment in equipment and software purchases.
|Outsourcing typically involves a lower initial investment as the hired company provides professional equipment and software.
|The ongoing costs for in-house production are associated with salaries for team members and maintenance costs for equipment.
|Outsourcing involves hourly wages or project-based fees, which can be negotiated and managed according to the project’s scope.
|Control over budget
|While in-house production offers high control over the budget, rescheduling shoots might exceed the budget.
|Outsourcing may offer lower control over the budget as the cost per video can be higher than in-house production. However, it provides predictability in terms of total cost.
|You retain full creative control with in-house production.
|Outsourcing may result in less direct control over the creative process, but it brings in fresh perspectives.
|In-house teams may lack the diverse set of skills that a specialised agency would have.
|Outsourced teams often have a wide range of skills and expertise in various types of video production.
If you’re still confused, consider experimenting. Create a 30-second video in-house and hire a video production agency for the same. Compare the results and determine which of the two aligns more closely with your expectations!
We hope this post will help you choose between in-house and outsourced video production. Remember, video content has the power to tap into emotions that are otherwise difficult to trigger and drive instant sales.
So, whichever route you choose, make sure it helps you produce excellent video content that aligns with your business goals.
If you go for outsourcing, feel free to try Ivory Media. As a leading video production company in Australia, we promise nothing but top-notch videos that’ll win the hearts of your target audience for sure.