How Much Does It Cost to Create a Killer Product Demo Video?

Author: Bob Jun 18, 2021 7 min read

Like with a lot of other creative project development, calculating the cost of a video demonstration or explainer video is always project-dependent. At the same time, it doesn’t mean that finding out the approximate price of your video is impossible – you just have to search for expertise-based content on this topic.

To create this article, I have asked Marina Vasilieva, PMD Team Lead to share the best practices for animated demo video creation


Learn more about WOW expert from Wow-How Studio



Factors Affecting Product Demo Video Cost


There are several different factors product demonstration companies take into account to make an estimate. 

  • Product video type. There are different approaches to product video creation, and in each of the cases, the video production companies use goal-specific tools and animation styles. The cost of creating a software demo video with screen capturing is quite low while creating a 3D video to showcase how the complex mechanism works may cost much more. 
  • Video Length. Product demo video length can also be different, and this means more or fewer work artists have to do. On average, product demos are 1-2 minutes long. But there can be a trick a 1-minute video with complex graphics (for example, 3D) may cost more than a 2-minutes video with simple animation like whiteboarding. 
  • Animation style. The animation style of your product video matters as well.  For example, motion graphics and 2D may cost less than 3D animation. Still, our creative specialists agree that creating a high-quality 2D may take the same time and effort as creating 3D animation. 
  • Average rate per hour. Depending on the studio location, the cost per hour of work on video production may cost $30-75 per hour. There are also niche video production houses that may charge more because of their specific expertise and experience. 


Inspiring Examples of Product Demo Videos


Below I have shortlisted some of the most interesting product demo videos created by tech companies. Pay attention that some of them are using a mix of animation styles to add uniqueness. There are also interesting examples with no voiceover – instead, the artists placed the highest bet on animation and explanation inside the video itself. 


How Much Does A Demo Video Cost?


Depending on your budget and experience with demo video creation, you have three strategies to choose from. 


Do it yourself  $10-$500 per project


There are a lot of product video makers with the help of which you may create a demo without or almost without marketing video production skills. This is the most affordable and less time-consuming tactic since everything you have to do is to use pre-developed video templates, customize them a little (if the application allows for customization), and add your script.
Still, creating an outstanding video product with unique graphics is almost impossible in this way since the animation you will use is quite templated and leaves little room for customization.

Learn about creating product video process


Hiring a freelancer  $500-$1500 per project


Hiring a freelancer is the second approach you may consider to create a product demo video. This is quite an affordable tactic as well  – the less experience the freelancer will have, the less you have to pay. There are a lot of talented freelancers you may get in touch with. Still, the choice of the most suitable one may be a challenge.

The freelance market is on the rise, and it can be difficult to find a specialist who will fit your project, especially if you are searching worldwide. A freelancer may also be lured by other, either more interesting or more expensive projects, and leave your video half-done, so be especially careful with this strategy. 


Learn more about freelance market for video productiom


Hiring video production agency  $2.5K-$10K per project


Hiring a video production agency is the most reliable and quality-promising way to create a demo video. In this case, you may be sure of the top-notch quality of the final product, its ultimate uniqueness, perfect match with your brand style, and great marketing potential. 

Compared to the two tactics above, this is the most expensive approach to product video production, but if you create your video with its marketing potential in mind, the investments in its creation are quite likely to pay off several times. 


Learn more about animation video production company Wow-How Studio


Different Approaches to Cost Calculation


There are also different approaches video demonstration companies follow to make a price estimate. 

  • Cost per project. If an agency has similar projects in its portfolio, it can be easier to estimate the price per hour or per minute. 
  • Cost per minute of video. The cost per minute for video is always project-specific. You may find it out by dividing the total project price by the number of minutes. 
  • Cost per hour of work. In this case, an agency estimates the scope of work based on their experience and project specifics to come up with an approximate number of working hours needed for video creation. Then, it is multiplied by their rate per hour. 


Wow-How Video Production Cost Formula


We, at Wow-How Studio, calculate the cost of the project depending on the number of working hours. We calculate the cost considering the complexity of the project based on the number of production hours (that is, how much time the artists spend on creating illustration and animation). 

The final cost also includes the work of the creative department and the scriptwriter, who are responsible for the creative concept of the video, plus the work of the project manager, who is responsible for communicating with the client, as well as adhering to milestones and deadlines.


What Is the Best Way to Produce a Product Video?


Betting on the best product demo video creation? Here is an effective strategy to do it right. 

  1. Research your target audience and competitors. Like any ad product entering the market, your video should be target-audience specific. It should cover their problems and pain points, match their values and be overly understandable. To better find out what approaches suit their preferences and validate some of your video production ideas, make sure to research the competitors and their marketing strategies. 
  2. Outline the main features of the product you want to showcase. Your demo video should be concise but still show the best features of your product. To save your time, and create a meaningful script, outline them in advance. 
  3. Be very clear with your message. Product demo videos are always used at the top of the sales funnel, and that’s why you have to communicate your message very clearly to capture your prospective leads and move them to the bottom of the sales funnel. 
  4. Define the right video length. Shorter videos aren’t always better. If you need more time to communicate your idea, do it. 
  5. Hire a reliable video production agency. This way, you can be sure about your future video quality and marketing potential.  
  6. Ask for a cost estimate in advance. To better plan your budget, don’t hesitate to ask your agency for a cost estimate. Most likely, they will be able to competently evaluate your future project complexity and come up with an approximate price. 




In this article, I have shared some practices for estimating the cost of demo video production. Since each project is unique, the cost will vary as well. I welcome you to get in touch with our video production team to find out how much your video costs and proceed with its top-notch creation! 

P.S. You may also subscribe to my blog to stay tuned into animation insider tips and practices. 



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